This California case shows you how stepfathers and stepsons can litigate over “stuff” that’s decades old. A 40 year marriage? Doesn’t matter ! What matters? The money !! Florida probate litigators and Palm Beach Estate Attorneys know that Florida homestead, and a Florida residence, and Florida land, are very important to estate planning clients.Many times they have sentimental and personal values, which may be greater than the financial worth of the property. Many times title to the Florida real property is intended to satisfy a personal objective, rather than an estate planning option. Many times people have a life estate to Florida real estate rather than 100% ownership. Although this can make sense sometimes, real estate litigators and Palm Beach estate litigators, will tell you that life estates in Florida real estate, like interests in Florida trusts, can mean probate litigation when you have second or third marriages. So, as you read this commentary, ask yourself: will my Florida estate plan mean that my son or daughter will sue my spouse when I die?
REAL ESTATE LITIGATION
Consider for a recent case from California, whose opinion was issued literally days ago, involving a California residence.
- Helen & her first husband purchased a house in 1953 for $12,500
- Helen remarried Warren in 1960
- Warren is stepfather to Helen’s son Brian
- Brian is stepson to Warren (can you tell already?……………. Brian sues his mom’s widow when his mom dies)
- Helen managed the money during her marriage and kept the books
- Warren received approximately $50,000 as an inheritance from his aunt, which he spent making improvements to the house
HELEN’S REVOCABLE TRUST
- Helen created a trust in 1987.
- The trust gave Warren a life estate in the house.
- Question: did Helen ever sign a real estate deed ? ( She probably should have, right ? )
- The trust said that the house goes to Helen’s trust after her widow passes away
Q: Guess who got the trust — & the house —– after the widow died?
A: Warren’s step son !
Are we surprised that there is litigation ? Stepson and stepfather fighting over real estate ?
HELEN CHANGES HER TRUST —- RE-MARRIAGE PENALTY
- 1999: Helen executed a first amendment to the trust agreement
- Helen restricts her husband’s life estate in the house
- Helen didn’t just want to give Warren a life estate in the house—- no ! She put conditions on her husband’s right to reside in the house. (What we don’t know is whether this was her idea or the stepson’s idea.)
- •war and only got a life estate in the house if he 1) lives in the house by himself, (2) remains unmarried, and (3) occupies the house on a continual basis.
NOTHING FOR MY WIDOW IF YOU REMARRY !! ………… marriage penalty in the trust
- In other words, if Helen dies, Warren can’t live in that house unrestricted.
- If Warren is a widower, and he meets a kind, loving, caring, nurturing woman who volunteers, helps people, and is an outstanding citizen, he can marry her…………… at a price.
- Helen’s trust says the surviving spouse loses his life estate upon remarriage
- Why in the world would a spouse treat her husband like that ? Why is there a re-marriage penalty in the trust ?
LIFE ESTATE TENANT PAYS TAXES & MAINTENANCE
Helen’s new trust terms said something, coincidentally, that’s the law in Florida for people that own a piece of Florida real estate together. The life tenant, that is, the person who has the right to live in the real estate during his or her life, has to pay the real estate taxes & the maintenance & the upkeep.
In Florida, this can be a problem: what if there’s a hurricane and there is severe damage to the roof or the windows are blown out ? Generally, major improvements like that, or necessary improvements to the house, are paid for by the trust, or partially by the trust and, in this case , the widow or surviving spouse: the person with the life estate.
POST ESTATE LITIGATION EXPLODES
- Helen passed away in 2005.
- After that, disputes arose between Helen’s surviving spouse or widower, and her son, Warren’s stepson, Brian.
- Brian wanted the surviving spouse to reimburse him for property insurance.
STEPSON SUES WIDOW TO END WIDOW’S LIFE ESTATE IN HOUSE HE OCCUPIED WITH HIS WIFE !!!
In April 2011, the stepson filed a fifth amended complaint seeking to terminate the widow’s life estate.
Q: What’s the point of all this?
Since this is a Florida probate litigation blog: for all of you who have Florida revocable trusts, Florida estate plans, and perhaps a second or third spouse and children from a prior relationship, consider what you can learn from this recent California case. You may want your Palm Beach estate planning attorney to separate inheritances for your second or third spouse and your children from a prior marriage. Consider having your Florida probate lawyer give a fixed dollar amount of an inheritance to your spouse, or your children. Want to minimize Palm Beach probate litigation ? Want to try to eliminate Fort Lauderdale estate lawsuits ? That’s a tough thing to do in today’s day and age. However, the likelihood that they’ll be an inheritance lawsuit in Palm Beach, or probate litigation in Fort Lauderdale and Miami, increases when you take your children from a prior marriage, and give them money or a property interest with your widow in a trust or real estate. The good news is that from Boca Raton to Aventura, Florida, to Fort Lauderdale and a Delray Beach, Florida, there are many excellent Florida estate planning attorneys and Florida probate lawyers. Good luck.