Is a Remainder Interest in a Life Estate Considered an Inheritance?
Full Question:
Answer:
The answer will depend on the context, but technically, the daughter would be considered to receive a remainder interest based on survivorship. A remainder interest is considered an inheritance in general terms, but in legal terms it is the vesting of a remainder interest.
A life estate deed also will pass property to the remainder person without going through probate. It is not considered part of the probate estate, such as the proprety that passes under a will or laws of intestacy.
For further discussion, please see:
http://www.allbusiness.com/personal-finance/individual-taxes/1169585-1.html
http://hallandhallnj.com/Publications/LRF/TFH.pdf
http://www.nysscpa.org/cpajournal/2001/0700/dept/d076301.htm