Central District Consumer Bankruptcy Attorney's Association

I would list the remainder as having a zero value.
Rational: you are filling out schedules for the estate. The trustee cannot sell a property with a life estate. I suppose the trustee could keep the estate open until the holder of the life estate ends, but that is not what is generally done.
Remember that one of the defenses against a sale free and clear of someone else's interest is the harm to the other person has to be less than the harm to the trustee. It is my understanding that the case law says that kicking an person out of a life estate, given to put a roof over the person's head, is too great an injury to allow a trustee to sell the property free and clear of the life estate.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Nov 29, 2013, at 4:17 PM, Holly Roark wrote:
>
> Debtor has a 1/3 remainder interest in a life estate. According to actuarial tables, mom is estimated to live another 11.48 years.
>
> If the property (120 acres and a house) is worth $278,200 now, and debtor will own 1/3 of it in an estimated 11.48 years, what % do I use to determine the present value of his interest? The property is in Minnesota and is woods and swamp, no crops. According to tax records the value is decreasing each year, by 2 - 4K. (It's questionable whether the value is actually $278K as that is just what the tax rolls say. It's probably worth less, but for the sake of this exercise, let's just go with the figures I've given.)
>
> Can someone please explain how I determine what % to use, and what is the rationale behind it, whether it's a high % or a low %? Thank you.
>
>
> Holly Roark
> Certified Bankruptcy Specialist*
> holly@roarklawoffices.com **primary email address**
> www.roarklawoffices.com
> Central District of California
> Consumer Bankruptcy Attorney
> 1875 Century Park East, Suite 600
> Los Angeles, CA 90067
> T (310) 553-2600
> F (310) 553-2601
> *By State Bar of California Board of Legal Specialization
>
>
>
> **For a quicker response, email me at holly@roarklawoffices.com.
> I only use gmail for my listservs, and am likely to miss private emails
> directed to my gmail account.**
>
>
>
*By State Bar of California Board of Legal
Specialization
The post was migrated from Yahoo.

The debtor has an interest. If someone is willing to buy it from the trustee, it has value. Debtor's remainder interest after Life estate could go to debtor's decedent estate if predeceases mom, depending on language of documentation conveying title.
Mark Jessee
Sent from my iPhone
On Dec 3, 2013, at 2:41 PM, Link Schrader wrote:
> I understand that a future interest has some value, but at present the debtor does not have any interest that could be sold by a trustee to pay creditors. Why would the debtor's future interest be worth more than a life insurance policy contingent upon the policy holder dying before the beneficiary?
>
> Link Schrader, Attorney
>
> Law Office of Link W. Schrader
>
> P.O. Box 3723, Tustin, CA 92781
>
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
>
> Fax: (310) 878-4158; www.schrader-law.com
> ______________________________________________________________________________________________________
> This communication and any files transmitted with it contain information which is confidential and may be privileged and exempt from disclosure under applicable law. It is intended solely for the use of the individual or intended recipient. You are hereby notified that any use, dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender. Thank you for your cooperation.
>
>
>
> On Sun, Dec 1, 2013 at 1:32 PM, nath don wrote:
>>
>> The IRS sets guidelines. You might look here: http://www.irs.gov/irm/part4/irm_04-048-006.html.
>>
>> The formula you need is (1 - [the discount rate])^[life expectancy in years]. This will give you a fractional answer that you can multiply against the 1/3*[the market value]. I'd be wary of using the tax roll value. You might instead try to get a real estate agent to write a letter stating the approximate value.
>>
>> OTOH, if you want to stick just to the tax documents -- including its implied discount rate -- the discount rate would be as 4 / (278 - 4) 0.0144 or 1.4% (assuming that the price drops $4k annually). Plugging this in to the equation produces a drop of almost exactly 15% in 11.5 years. The present value of the future interest would be approximately 1/3rd of $236.5k or about $79k.
>>
>>
>> On Fri, Nov 29, 2013 at 4:17 PM, Holly Roark wrote:
>>>
>>> Debtor has a 1/3 remainder interest in a life estate. According to actuarial tables, mom is estimated to live another 11.48 years.
>>>
>>> If the property (120 acres and a house) is worth $278,200 now, and debtor will own 1/3 of it in an estimated 11.48 years, what % do I use to determine the present value of his interest? The property is in Minnesota and is woods and swamp, no crops. According to tax records the value is decreasing each year, by 2 - 4K. (It's questionable whether the value is actually $278K as that is just what the tax rolls say. It's probably worth less, but for the sake of this exercise, let's just go with the figures I've given.)
>>>
>>> Can someone please explain how I determine what % to use, and what is the rationale behind it, whether it's a high % or a low %? Thank you.
>>>
>>>
>>> Holly Roark
>>> Certified Bankruptcy Specialist*
>>> holly@roarklawoffices.com **primary email address**
>>> www.roarklawoffices.com
>>> Central District of California
>>> Consumer Bankruptcy Attorney
>>> 1875 Century Park East, Suite 600
>>> Los Angeles, CA 90067
>>> T (310) 553-2600
>>> F (310) 553-2601
>>> *By State Bar of California Board of Legal Specialization
>>>
>>>
>>>
>>> **For a quicker response, email me at holly@roarklawoffices.com.
>>> I only use gmail for my listservs, and am likely to miss private emails>>> directed to my gmail account.**
>
>
> Link Schrader, Attorney
> Law Office of Link W. Schrader
> Mail: P.O. Box 3723, Tustin, CA 92781
> Office: 106 W. 4th Street, Suite #308, Santa Ana,
> CA 92701
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
> San Diego: (619) 952-8342; Fax: (310) 878-4158
> www.schrader-law.com
> ______________________________________________________________________________________________________
> This communication and any files transmitted with it contain information which is confidential and may be privileged and exempt from disclosure under applicable law. It is intended solely for the use of the individual or intended recipient. You are hereby notified that any use, dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender. Thank you for your cooperation.
>
>

The post was migrated from Yahoo.

Debtor has a 1/3 remainder interest in a life estate. According to
actuarial tables, mom is estimated to live another 11.48 years.
If the property (120 acres and a house) is worth $278,200 now, and debtor
will own 1/3 of it in an estimated 11.48 years, what % do I use to
determine the present value of his interest? The property is in Minnesota
and is woods and swamp, no crops. According to tax records the value is
decreasing each year, by 2 - 4K. (It's questionable whether the value is
actually $278K as that is just what the tax rolls say. It's probably worth
less, but for the sake of this exercise, let's just go with the figures
I've given.)
Can someone please explain how I determine what % to use, and what is the
rationale behind it, whether it's a high % or a low %? Thank you.
Holly Roark
Certified Bankruptcy Specialist*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**For a quicker response, email me at holly@roarklawoffices.com.
I only use gmail for my listservs, and am likely to miss private emails
directed to my gmail account.**
Debtor has a 1/3 remainder interest in a life estate. According to actuarial tables, mom is estimated to live another 11.48 years.If the property (120 acres and a house) is worth $278,200 now, and debtor will own 1/3 of it in an estimated 11.48 years, what % do I use to determine the present value of his interest? The property is in Minnesota and is woods and swamp, no crops. According to tax records the value is decreasing each year, by 2 - 4K. (It's questionable whether the value is actually $278K as that is just what the tax rolls say. It's probably worth less, but for the sake of this ex
The post was migrated from Yahoo.