Environmental & Energy
Sep. 1, 2015
The Importance of Distinguishing Between the Right of Occupancy and a Life Estate
Courts have struggled to distinguish the two concepts. By Alan Weinfeld
Many trusts provide that a surviving spouse or another beneficiary has the right to live in a residence rent free for the remainder of his or her life. This type of provision is particularly common in a second marriage when the settlor (the person creating the trust) comes into the marriage with a home that is separate property and wants the surviving spouse to live there before the property passes to the settlor's children or other heirs as remainder beneficiaries.
Many practi...