Although less common than a half century ago,1 it is not at all unusual to see use made of legal life estates and remainders, not to mention life estates and remainders in trust. A major concern is what is the income tax basis for a remainder and what happens if the holder of the life estate predeceases the remainder interest holder? Is the holder of the remainder interest entitled to receive a new income tax basis at death?
Harl, Neil E.
"Income Tax Basis for a Remainder Interest,"
Agricultural Law Digest: Vol. 21
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol21/iss4/1