[CLBS] Life Estate and Homestead

[Laura Burri]

I have a client with a life estate in a residence. A third party has title and he has a life estate as listed on the deed to the third party. He currently resides in the residence. He has one judgment recorded as a lien and expects more to come. He is otherwise judgment proof. There is equity in the property and it is worth less than $100,000.  

Has anyone successfully claimed a homestead exemption in a life estate? Should it be recorded as opposed to assuming it is automatic? Can the debtor also set aside the judgment lien as impairing his homestead under 522(f)? Would the judgment lien show up if the property is sold since the debtor does not have title but only a life estate?

Appreciate any thoughts any of you may have. Laura

Laura E. Burri
Attorney at Law
Ringert Law Chartered
455 S 3rd Street
Boise, ID 83702
Phone 208-342-4591
Fax 208-342-4657