In re Estate of Kinert v. Penn. Dept. of Revenue
Commonwealth Court of Pennsylvania
693 A.2d 643 (Pa. Commw. Ct. 1996)
Hildreth Kinert's will "devised" to her foster sons James Quade and James Lawley a "terminable life estate" letting them occupy her house for their natural lives, or until both vacated for 60 days, subject to paying taxes and maintaining the property, with the property passing to a local church once they stopped using it. After Kinert's 1990 death, her foster sons continued living there under the will's conditions, and her executor (defendant) classified the bequest as a mere license to occupy rather than a life estate in a 1995 accounting; the Pennsylvania Department of Revenue (plaintiff) argued it was actually a life estate, the trial court agreed with the estate that it was a license, and the Department appealed, seeking a determination of the taxable value of a life estate.
Whether a will's use of the word "devise" and the phrase "terminable life estate" to convey occupancy rights in real property, subject to a 60-day-vacancy termination condition, creates an actual life estate or merely a license to occupy.