A parent’s will often lets one child live in the family house “for as long as he lives there,” with the house going to all the children afterward. What happens when that child is the one who forces a sale? In Forrest v. Elam (1979) 88 Cal.App.3d 164, the California Court of Appeal held that a son whose life estate ended when he left the property gave it up by forcing a partition sale. He got his equal share as an heir, but nothing extra for the life estate.
Why Forrest v. Elam Matters
A life estate is the right to use a property for a person’s lifetime. The people who receive the property afterward hold what is called a remainder. California lets either side bring a partition action. Code of Civil Procedure section 872.210 (CCP 872.210 on who can file for partition) authorizes “An owner of an estate of inheritance, an estate for life, or an estate for years in real property where such property or estate therein is owned by several persons concurrently or in successive estates” to file.
When the property is sold, CCP 873.840 on successive estates tells the court to set aside “a just and reasonable sum for the satisfaction of the estate of a tenant for life or years.” Forrest answers a question that statute does not: what is a life estate worth when it ends the moment the property is sold?
The Facts: A Life Estate That Ended on Move-Out
Alice E. Forrest died in 1960. Her will gave her son Fern the family property “for so long as he lives upon the property.” When Fern moved off the property or died, it would go to her children then living, in equal shares.
Fern filed for partition in 1975 against his three living siblings and asked the court to sell the property. It sold for $56,000. Fern then claimed two things: his one-quarter share as one of the four living children, plus a separate payment for the market value of his life estate. His siblings had already offered to split the proceeds four ways. The trial court sided with them, giving each of the four parties one-quarter and nothing extra to Fern. (Forrest, at pp. 169–170.)
How the Court of Appeal Decided the Case
Not All Life Estates Are Valued the Same
The court agreed that a life tenant can bring a partition action, but added, “However, all life estates are not created equal.” (Forrest, at p. 170.) A life estate that lasts for the owner’s whole life is one thing. Fern’s lasted only as long as he lived on the property.
The Sale Was Fern’s Removal
The trial court had found that Fern abandoned his life estate by filing the lawsuit. The Court of Appeal put the moment later. Filing alone did not end the life estate: “until sale was accomplished there was no removal.” (Forrest, at p. 171.) But once the property was sold on Fern’s own petition, he was removed from it, and the condition in his mother’s will was met.
A Life Estate That Ends at Sale Is Worth Zero
Because the same sale that paid out the proceeds also ended Fern’s life estate, the court valued that estate at zero. Fern could not take more than his mother’s will gave him. His appraiser’s opinion did not help, because it valued the life estate as if it lasted for Fern’s whole life. (Forrest, at p. 172.)
The court distinguished Riley v. Turpin (1956) 47 Cal.2d 152, where a remainder owner sued a life tenant whose estate had no move-out condition, so the life estate had to be valued and paid. It also distinguished Estate of Giacomelos (1961) 192 Cal.App.2d 244, where the property was taken by the government rather than sold by the life tenant’s own choice. (Forrest, at p. 172.)
Attorney’s Fees: A Weak Claim Is Not a Common Benefit
Under Code of Civil Procedure section 874.010 (CCP 874.010 on the costs of partition), reasonable attorney’s fees for the common benefit of all owners are shared, and CCP 874.040 on apportioning costs lets the court divide them as is fair. Forrest shows how that works when one owner pushes a claim that goes nowhere:
- Fern’s lawyer asked for $5,600. The court awarded $1,750 as a shared cost, because pressing the life estate claim was not for the common benefit. Relying on Capuccio v. Caire (1932) 215 Cal. 518, the Court of Appeal found no abuse of discretion. (Forrest, at pp. 173–174.)
- The siblings’ lawyer was also awarded $1,750 as a shared cost, because resisting Fern’s claim protected every owner’s share. (Forrest, at p. 174.)
- Fern’s $200 expert witness fee was not shared, because the appraisal supported only his losing valuation claim. (Forrest, at p. 175.)
The court affirmed the judgment in full.
What Forrest v. Elam Means for California Heirs
- A life estate does not lock up an inherited house forever. Life tenants and the heirs who take after them can both seek partition. See partition of inherited property.
- Read the exact words of the will or deed. A life estate that ends on “removal” or move-out is very different from one that lasts for life. The wording decides what the life estate is worth in a sale.
- Who forces the sale matters. Forrest valued the life estate at zero because the life tenant chose the sale himself. When the heirs who take afterward force the sale instead, expect the court to value the life estate and pay it from the proceeds under CCP 873.840, as in Riley.
- Weak side claims cost money. Fees spent chasing a claim of limited merit may not be shared, while fees spent defeating it can be. See who pays for a partition action.
- The life estate must be in writing. A spoken promise that someone can live in the house for life usually does not create one. See why oral life estates are not recognized in California.
Get Help With an Inherited House and a Life Estate
If a parent’s will or deed left a sibling the right to live in the family house and the arrangement no longer works, a partition action can end the standoff and divide the value fairly. When you are ready, you can file a partition lawsuit.
Talkov Law can help. With 12 full-time partition attorneys and experience in over 650 partition actions throughout California, our team handles every step of the process, from filing through the sale and the final division of proceeds and fees. Call (877) PARTITION (727-8484) today or contact us online to get started.
