In a life estate, who is responsible for paying taxes, insurance, and maintence on the property?

My father left his property to his 6 kids, with a life estate reserved for his companion. She has lived there for the past 6 years and she has paid the insurance and taxes. I have recently discovered that the property taxes have not been paid and the property has not been maintained. example: The septic system is bad and she has rigged the plumbing so that the gray water from the kitchen goes out into the gravel street rather than fixing the septic system. The property is in a rural area of Montana. Are the owners (6 kids) responsible for maintenance, taxes, and insureance, or the person living there under the life estate? None of the owners reside in MT nor do any of us have a relationship with the person residing in the property.

The life estate holder IS an owner -- just as much as the remaindermen (you & your sibs). The life estate holder has an obligation not to permit waste -- ie. damage or destruction of the improvements or their value. That includes failure to pay taxes which will result in its loss to the taxing authority. It generally does not include payment of insurance. You & your siblings have the right to act to preserve the property (including payment of the taxes) & to seek contribution from the life estate holder for doing so. If your siblings won't act YOU can do so & seek contribution from everybody who has an interest. In an extreme case the remaindermen can even petition to terminate the life esate. See an attorney about your rights & how to protect them.

If i remember correctly, the owners are responsible for taxes and maintenance unless otherwise stated in the life estate papers. How long has it been since she has paid the property taxes? That could have consideration when deciding who would be responsible. I would ask an attorney about it and possibly get him to be executor over her part in the life estate to ensure that everything is done like it is supposed to be.

As long as she is alive and living there she is responsible for taking care of things and paying the bills. All six kids will inherit after her death. Is there something that has happened recently that would keep her from being able to maintain the property and pay the bills? It might be in all of your best interest to help her out if need be so that the property doesnt become too run down or auctioned off for back taxes. Since none of you live in town or have a relationship with her you may have to have an attorney contact her about the matter.

It depends on the wording of the life estate itself. The estate we set up for my son pays all debts out of cash we put into the estate . . . yours could be different.