Question

A residence was assessed annual county property taxes of $5,000. The residence was occupied by a life tenant who lived on the premises rent-free. The residence could have been rented to a third party for $2,000 a month. The life tenant did not pay the property taxes. Instead, the holder of the remainder interest paid them to prevent the county from imposing a lien on the property or possibly foreclosing on the property. The fair market value of the life estate was 10 percent of the fair market value of the property held in fee simple absolute. Can the holder of the remainder interest recover the tax payment from the life tenant

Answer 1

Answer: Yes, because the life tenant owes the holder of a remainder interest a duty to pay the property taxes.

Explanation:

Based on the information given, the holder of the remainder interest can recover the tax payment from the life tenant because the life tenant owes the holder of a remainder interest a duty to pay the property taxes.

It should be noted that it's the obligation of life tenants to pay all ordinary taxes on the land as well as the interest on the mortgage. In a situation whereby an incime isn't produced by the property like in the scenario given in the question, then the life tenant will be responsible for the taxes and the interest on the mortgage to the extent of a reasonable rental value of the land.