Life Estate Hawaii With Condition Subsequent
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FAQ
A remainderman is a third person other than the estate's creator, initial holder, or either's heirs. For example, if Blackacre is granted ?to Thelma for life, and then to Louise??Thelma has a life estate and Louise is a remainderman.
An example of a life estate with Jane Smith as the remainderman is "to John Smith for life, then to Jane Smith." Jane Smith is the remainderman in this example because she is the person inheriting title to the property following the death of John Smith.
What are the pros and cons of life estates? Avoid probate. Possible tax breaks for the life tenant. Reduced capital gains taxes for remainderman after death of life tenant. Capital gains taxes for remainderman if property sold while life tenant still alive. Remainderman's financial problems can affect the life tenant.
A life estate may limit the transferability of the property, as the life tenant can only sell or transfer their interest in the property for the duration of their life or the designated measuring life.
In the event of the death of a remainderman before the life tenant dies, the remainderman's interest may pass to the deceased remainderman's estate or possibly to the surviving joint remaindermen, depending upon how the joint remainder interests were set up in the will, trust, or deed.