Re: life estate vs right to occupy vs lease

A fourth option would be to consider a private annuity. I did a similar
transaction about 20 years ago and it worked beautifully.
 
Barry Anstine
JBA Properties Ltd.
1460 Russell Road #203
Paoli PA 19301-1271
Phone 484-595-9200
Fax 484-595-9201
 
  _____

From: realproperty-bounce_at_list.pabar.org
[mailto:realproperty-bounce_at_list.pabar.org] On Behalf Of Leslie Wizelman
Sent: Saturday, May 06, 2006 3:11 PM
To: real property list serve
Subject: [realproperty] life estate vs right to occupy vs lease
 
Children are willing to pay full price for parents farm in order to provide
much needed income to parents (age 63 and 64). Parents will owner finance
over their actuarial life expectancy (20 yrs) with no forgiveness at death,
but nonnegotiable and nonassignable. Parents intend to continue to live and
farm property, and children and parents are in agreement that parents must
be assured of security of home. I am trying to determine the consequences of
each option -
    1. Children purchase remainder interest, Parents retain life estate.
    2. Convey full title to children with reservation to parents of right to
use and occupy.
    3. Convey full title to children with lifetime lease.
Clients are parents, but they want to make sure children's interests are
protected as children are helping them out financially. Are there any
different tax consequences to each approach?
Are there any practical differences to each approach?
TIA
Leslie Wizelman, CELA*
P.O. Box 114
Wyalusing, PA 18853
wizelman_at_epix.net
phone 570-746-3844
fax 570-746-3699
www.lesliewizelman.com
 
*Certified as an Elder Law Attorney
by the National Elder Law Foundation as
accredited by the Pennsylvania Supreme Court
Received on Mon May 08 2006 - 07:42:24 PDT