In this case, if D predeceases C, he must include the entire trust corpus, reduced by the present value of C's life estate
Legal life estate
. An interest consisting of a legal life estate
plus a general power of appointment over the remainder will qualify if it meets the requirements (a) to (e) for a "power of appointment trust" above.
Finally, if we look at the problem as a standard waste case, perhaps arising in the context of a life estate
or a conventional lease, we might be tempted to say, as Professors Stoebuck and Whitman point out, that this decision simply deviates from the general rule that "the appropriate measure of damages [for the commission of waste] is generally the diminution in market value of the property or the cost of restoring the property to its former condition, whichever is less." (165) But what can we say about it now, informed as we are about the shifting debates that have taken place over proper waste standards during the last eighty years?
(41) A deed reserving a life estate
, as long as the applicant maintains an "intent to return," with a remainder to third parties, does not disqualify an applicant from Medicaid, (42) nor does a transfer between spouses.
Options generally used to reduce income taxes offers the life estate
Thus, a deed that purports to transfer a fee simple will instead transfer a life estate
if that is all the grantor has.
The other negative aspect is that, since the beneficiary usually has some continuing right in the trust (e.g., a life estate
), the property subject to the lapsed power would be included in his estate for estate tax purposes as a gift transfer in which an interest has been retained.
* Retained a life estate
in the property previously transferred;
The valuation of a life estate
requires appraisal of the fee simple estate and the determination of the expected life of the life estate
holder using actuarial tables.
Specifically, [section][section]732.2035 and 732.2055 now include in the elective estate 50 percent of the net value of the protected homestead if the spouse receives a life estate
(10) or elects to take a one-half tenants in common interest, or 100 percent of the net value if the spouse receives a fee simple interest.
* The sale of the Vested Remainder Interestin a Life Estate
for the property located at 313 East 18th Street in Gramercy Park for $900,000 cash.