Q: Where in the New Jersey Codes is the issue of "life estates" discussed?

A: Life estates, and life rights to occupy a residence or property or to receive a lifetime stream of income, are important legal devices, usually established in a deed or by a trust, which are often used for long term care or nursing home planning by attorneys who work in the fields of elder law and estate planning. The law which applies in New Jersey and most other states concerning life estates and the reasons for their use is not generally treated on an extensive basis in the statutes or legislation passed by the state legislature and signed into law by the governor. On this point, most of the New Jersey legislation on life rights refers to “tenant for life” situations and refers to issues, such as damage (called “waste”) to life right’s property, which are most likely unrelated to any decision by you to use a life estate or life right to occupancy or an income stream under current circumstances. Instead, most basic law which applies under state law to life estates is “common law” which consists of the various concepts and holdings which have been set forth historically in court decisions over time.

For this reason, the law concerning life estates, created either by deeds or sometimes by trusts, is difficult to locate and may well include both federal and state court decisions. In addition, with regard to life estates, and on a separate but close legal basis with regard to lifetime rights to occupy property or receive an income stream,there are many complex federal and state tax laws and regulations and Medicare and Medicaid laws and regulations, including court decisions.

All of this makes life estate, life occupancy, and retained life income stream planning very complex matters, especially in New Jersey. Because these are such difficult legal areas to explain or apply, you should definitely consult with an elder law attorney or estate planning attorney on these important matters. Good luck.

A: Life estates, and life rights to occupy a residence or property or to receive a lifetime stream of income, are important legal devices, usually established in a deed or by a trust, which are often used for long term care or nursing home planning by attorneys who work in the fields of elder law and estate planning. The law which applies in New Jersey and most other states concerning life estates and the reasons for their use is not generally treated on an extensive basis in the statutes or legislation passed by the state legislature and signed into law by the governor. On this point, most of the New Jersey legislation on life rights refers to “tenant for life” situations and refers to issues, such as damage (called “waste”) to life right’s property, which are most likely unrelated to any decision by you to use a life estate or life right to occupancy or an income stream under current circumstances. Instead, most basic law which applies under state law to life estates is “common law” which consists of the various concepts and holdings which have been set forth historically in court decisions over time.

For this reason, the law concerning life estates, created either by deeds or sometimes by trusts, is difficult to locate and may well include both federal and state court decisions. In addition, with regard to life estates, and on a separate but close legal basis with regard to lifetime rights to occupy property or receive an income stream,there are many complex federal and state tax laws and regulations and Medicare and Medicaid laws and regulations, including court decisions.

All of this makes life estate, life occupancy, and retained life income stream planning very complex matters, especially in New Jersey. Because these are such difficult legal areas to explain or apply, you should definitely consult with an elder law attorney or estate planning attorney on these important matters. Good luck.

A: Dear sir or madam: if the life estate has been terminated by the event of the person dying, this issue is usually a mechanical issue of creating a descriptive enough deed to explain the scenario, and would be a deed from the individual who has a right of reversion. Does this make sense? There is no restriction to sell such a property, based on the limited information you are giving us. Good luck. Rodney Alberto, Esq. www.albertobrothers.com