Q: I own two homes. In my will and my trust, I have assigned a beneficiary for each of the properties. However, I would like for the properties to cede to a nonprofit once the designated beneficiary dies, rather than the properties being successively willed to beneficiaries of their choosing. Is there any means to make this happen?
A: The answer is that the trust can provide that the individual beneficiaries have lifetime interests in the respective property and that upon their deaths, the remainder interest in the properties is to go to the charitable beneficiary.
You, as grantor, must make sure that the properties are titled in the name of the trust (should be a revocable trust if you want to maintain control and have the right to change beneficiaries and terms.)
You should also spell out in the trust what the rights/obligations of the beneficiaries are during their lifetimes, such as to receive income from the property if they rent it, to pay taxes, etc. A trust can specify these terms any way the grantor wants.
If the property is merely deeded to the beneficiary as a life tenant with remainder to the charity, the life tenant would automatically be entitled to income even if he/she was not occupying the property.
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But I can provide only general, not legal, advice. Discuss your situation with your attorney.
Q: I am renting the other half of my mother’s duplex and I’m looking for the term that is used in the will that allows me to stay here if she dies. My mother lives in the other half of the duplex.
A: There are many “terms,” but let me ask you a question first. If your mother dies, will you inherit the property? I never want children to interfere with their parents’ intentions as to how and where the assets will go on death, but it also makes sense if the children at least know what the parents’ intentions are.
So, if you are the only child — or your mother plans to give you the entire house — you don’t need any term.
But first, you have to determine how your mother holds title. If it is in her sole name, then her last will and testament will control. If she owns the property with someone, that can be in one of two ways:
Tenants in common. This means that she owns a percentage of the property (usually one-half) and someone else owns the other percentage. On your mother’s death, her will controls who gets her percentage.
Joint tenants (in some states it includes “with rights of survivorship”). Here, when your mother dies, the joint tenant will automatically, by operation of law, become the owner of the property. And even if your mother’s will states that you are to get her property on her death, the will is ineffective; the way that title is held controls.
You should talk with an attorney in your area. Perhaps your mother can give you a life estate (is that the term you are seeking?), which means that you can live in the house so long as you live, but on your death it will go to someone else, as instructed in your mother’s will.