Question

A) Define Eminent Domain with an example.

B) Define Life Estate and Remainderman with examples.

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Answer 1

A-Eminent domain is a legal strategy that allows a federal or local government to seize private property for public use. The seizing authority must pay fair market value for the property seized.

EXAMPLE:--Let's say John Doe lives in a house on one acre next to Highway 47. The state wants to widen the road due to the higher traffic and the new casino that was built down the road. In order to widen the road, the state needs the space on either side of the road.

Because the state deems the road necessary, it seizes John's property and gives him $250,000 for it. John does not have the opportunity to say no, though he can challenge whether the $250,000 is fair market value.

The police power of local and federal governments generally is what gives them the authority to seize property for public use. The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain and requires "just compensation" for seized property.

In some cases, the property owner starts the eminent domain proceedings. This is called inverse condemnation, and property owners typically apply it when a government has used a property without just compensation (typically, this happens when the government has polluted the property).

B)-- LIFE ESTATE- A life estate is an estate interest in land that lasts for the life of the life tenant. The holder of a life estate has a full right to possess the property during their life. A life tenant can sell their interest to a third-party with the caveat that the third-party buyer of this life estate interest would only own the property until the death of the original life tenant. A life tenant pays all property costs, applicable taxes, and insurance while in possession of the property. The holder of a life estate cannot leave the property to anyone in a will because their interest does not survive upon death, and also cannot commit waste or any activity that would keep the remainderman from receiving the property in an optimum condition.

EXAMPLE:-A common example of a life estate is when a parent transfers a property to a child for the life of the child (or visa versa). A deed that grants a life estate interest in property typically sets forth that the subject property is being conveyed for the life of a certain person and then identifies the next person in line to own the property after the life estate holder dies. Common deed language used to convey a life estate is: to John Smith for life, then to Jane Smith.

REMAIMDERMAN :-A remainderman is the person who inherits the property after the death of a life estate holder.

EXAMPLE:-In our prior above example, to John Smith for life, then to Jane Smith, Jane Smith would be the remainderman. Interestingly, a remainderman can sell his or her interest in the property, but the person who purchases a remainderman interest only has a right to possess the property after the death of the life estate holder. If the remainderman dies while the life estate tenant is still alive, then the remainderman's heirs would own his or her interest in the property.