Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
625.0000 PARENT-CHILD TRANSFER
625.0123 Life Estate. Mother transfers real property equally to daughter and son, and reserves a life estate in 2001. Daughter dies in 2006, and she leaves her remainder interest to her brother. Mother dies in 2014. The 2001 transfer is not a change in ownership, because Mother retains present beneficial ownership of the property by reserving a life estate for herself. At daughter�s death in 2006, the transfer of her remainder interest to her brother is a transfer of a future interest. Because daughter does not transfer a present beneficial interest to her brother, the 2006 transfer does not constitute a change in ownership. However, upon mother�s death in 2014, the future interest vests and becomes a present beneficial interest, resulting in a transfer of 100 percent of the property from mother to son. Because son is mother�s child, the parent child exclusion would be available for the entire property, assuming a timely claim is filed. C 4/7/2015.