[CLBS] Life Estate and Homestead

[Catherine Dullea]

I checked with a trusted title officer about the sale aspect.  If the
property sells, the judgment must be paid because the life estate has value.
If client dies, it goes away.  Exemptions are construed in favor of the
debtor, so you'd think the homestead exemption would work....

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Laura Burri
Sent: Monday, February 24, 2014 3:05 PM
To: clbs at admws.idaho.gov
Subject: [CLBS] Life Estate and Homestead

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





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