Q: What needs to be done when there's a life estate on a property, the life tenant dies & owes $ to a rehab nursing center?
Hello,
My father died in early January of this year. He held a Life Estate on his home and my sister is listed as the remainderman on the deed. We filed the death certificate with the Town of Riverhead.
My father owes a large sum of money to the rehab nursing center he was in when he died; a sum of money larger than all of his other assets. We have not recorded a new deed in the county clerk's office. Is the house at risk due to the money owed to the nursing center? Should we record a new deed as soon as possible?
Thank you,
Basil
A: Once the life tenant dies, the property passes by operation of law to the stated remainderman. Thus, the property is not in your father's estate. The issue is who is responsible for the bill. Usually, someone would sign the admission agreement. If it is you or your sister, they will come for you.
Carl Nelson and Steven Warren Smollens agree with this answer
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A: It depends whether the nursing center had a judgment against your father before he died. If so, a judgment entered in the same county as the property would form a lien on the property which would survive a change in ownership (such as that occurred upon his death). Since your sister would be the new owner, whether personal liability (and thus the potential for such liability to attach to property she owns in the event of a judgment) would depend on whether she was otherwise liable for the debt.
Steven Warren Smollens agrees with this answer
1 user found this answer helpful
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