Q: Does a lease/rental agreement transfer with a mobile home with a living trust when the home goes to a family member?
I am the trustee on my mother in law's living trust. When she passes, her mobile home will be transferred to my sister in law who lives with her and serves as her care giver. She presently has as lifetime rental/lease agreement with the mobile home park. Does the lease agreement transfer with the mobile home?
A: No. A lease is merely a tenant’s right to possession of property during the lease term. You said that your mother in law was the tenant and the lease term was the life of your mother in law. Once she passes, the lease comes to an end by its terms. The mobile home on the other hand was owned by your mother in law and she put it into a trust. Upon her death, the mobile home will pass to your sister in law per the trust terms. She will own the mobile home at that time, but she’ll need a place to park it if she expects to live in it. Perhaps she can negotiate a new lifetime lease for herself like your mother in law did.
A:
A lifetime rental agreement expires when the person expires.
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