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If 75 yr old surviving spouse is awarded life estate on property due to pre-marriage son, what percentage would that award be?

Minneapolis, MN |

In a Probate Estate case, if surviving spouse is awarded a life estate to property due to son from previous marriage, what percentage of the amount of the property would she receive due to her age if property was sold. Or would the life estate only entitle her to use or rent the property until she died?

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Attorney answers 3

Best Answer
Posted

If the surviving wife wishes to sell the property during her lifetime, the best method of allocating the sale proceeds between her and the son would be to use the valuation tables published by the IRS. The allocation established by these tables changes continuously because of interest rate changes in the economy and because of her increasing age.

Asker

Posted

I looked up the IRS tables and found that for my age assuming 3% interest rate the rate was ..7335 which seemed high. It seemed like the older the higher the percentage. Was I missing a mathematical action or was the .7335 possibly what I would forfeit instead of receive? thank you

Douglas M Turbak

Douglas M Turbak

Posted

I think that you're doing it right, except that you may not be using precisely the correct interest rate (which the IRS would say that you must use). The number which you've identified means that 73.35% of the total value of the property is attributable to the remainder persons, and that the rest (0.2665) is attributable to the life estate holder. This 0.7335 will indeed continue to increase as time goes by.

Posted

Assuming there is no will, then with regard to the homestead, Minnesota Statute 524.2-402 provides that a surviving spouse, who does not have children with the decedent, gets the house for her life (which she could rent out or use the property), and then, upon her death it would pass to the decedent's heirs. She cannot be forced to sell the property.

Posted

I agree with the previous answers. To sell the property in most cases the life estate owner has to agree with the owners of the remainder interest (the interest in the property after the life estate owner dies). So since both sides have to consent, they are free to come up with any split they can agree on.