Can a life estate be revoked due to unpaid taxes and property deterioration?

Full question:

if the owner of a life estate has not paid the taxes for several years (the remainder man has had to pay to keep current) and has allowed the property to deteriorate to the extent that the value of the property has declined due to extensive disrepair, is the life estate revocable?

  • Category: Real Property
  • Subcategory: Deeds
  • Date:
  • State: Minnesota

Answer:

Rescinding a deed is challenging and typically requires grounds such as fraud, incapacity, duress, undue influence, material breach, or mistake. In cases of waste by a life tenant, the usual remedy is to seek damages rather than revocation of the life estate. A life tenant must not harm the property or commit waste, which can negatively affect the remainderman's interests. If a life tenant mismanages the property or allows it to deteriorate, they can be held liable for significant damage or depreciation in value. Life tenants are obligated to maintain the property’s value for those with future interests.

Rescission cancels the contractual duties of both parties, while reformation allows courts to amend a contract to rectify inequities. For rescission, both parties must return to their pre-contract positions. Grounds for rescission include fraud, incapacity, duress, undue influence, material breach, or mistake.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, a life tenant generally has a duty to pay property taxes on the estate. This obligation ensures that the property remains free from tax liens, which could affect the remainderman's future interest. If the life tenant fails to pay taxes, the remainderman may need to intervene to protect their interest in the property.