STAR exemption
While filling out the form for the STAR tax exemtion program (deadline is March 17!) I came across a question about a life estate. What exactly is that? Is my property my life estate? the contents of my apartment? Confused….
While filling out the form for the STAR tax exemtion program (deadline is March 17!) I came across a question about a life estate. What exactly is that? Is my property my life estate? the contents of my apartment?
Confused….
See:
http://en.wikipedia.org/wiki/Life_estate
PS
I don’t know how this plays out in a STAR application.
You better double check STAR definition of the phrase life estate.
What I explained is a life estate but the Star program application might be a variation.
a life estate is when you buy a property and you allow the seller to live there as long as he wants. people who do this are usually senior citizen owners who want to sell but not move because of age or illness. Sometimes you can get a good deal if you deal with the owner direct. the reason is because
by law the senior gets to stay and you become their landlord,in other words you cannot harass the senior to move its part of the contract and life estate is written into the deed.
short answer: a life estate would be if the property were not owned completely by you – for example your mother leaves her second wife her house as a life estate, with you getting the remainder interest (i.e. after the wife dies). [Okay I might be wrong – it has been a long timesince the bar exam.] The answer in your case is probably that there is no life estate issue vis a vis your property.