Can a remainderman of a life estate put their share of the estate into a Trust?

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Can a remainderman of a life estate put their share of the estate into a Trust?

A mom owns a house with a life estate on it. She conveyed the house to her

daughter and son as tenants in common. The daughter wants to put her portion

in a trust. Can she do this and if so how?

Asked on June 4, 2018 under Estate Planning, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, she can put her remainder interest into a trust: any interest or thing or right that a person owns, including a remainder interest, can be placed into a trust (or, for that matter, simply sold or gifted to another person). 
To do so, go to an attorney: you are talking about the intersection of two complex areas of law (life estates/remainder interests and trusts), so you want this done correctly. If it's not worth the cost of a lawyer, it's likely not worth doing. The trust, since it is gaining something (the remainder interest) could pay the cost of the attorney as a trust expense.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, she can put her remainder interest into a trust: any interest or thing or right that a person owns, including a remainder interest, can be placed into a trust (or, for that matter, simply sold or gifted to another person). 
To do so, go to an attorney: you are talking about the intersection of two complex areas of law (life estates/remainder interests and trusts), so you want this done correctly. If it's not worth the cost of a lawyer, it's likely not worth doing. The trust, since it is gaining something (the remainder interest) could pay the cost of the attorney as a trust expense.


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