Must a judgment against a life tenant be released after the life tenant has died? (AYU Mar 2024)

Presented by Jon Brodegard

We do not see that many life tenancies any more, but they still pop up now and then. We have been asked about a couple of interesting scenarios recently. Since judgments may be recorded against life tenants, it may be useful to know when such judgments must be released to issue title insurance. Here are some principles to keep in mind:

1. The life tenancy only lasts as long as the individual who is the beneficiary of the life tenancy is alive.
2. If the life tenant is alive, the life tenant retains his or her interest in the property — unless the life tenant signs a deed conveying his or her interest to another.
3. Judgments against the life tenant cannot attach to more than the life tenant’s interest in the property.

At the end of the day, judgments obtained against a life tenant will be treated differently if the life tenant is alive or if the life tenant is deceased.

If the life tenant is alive, then the life tenant will need to participate in any sale or refinance. The life tenant will need to sign any deed or deed of trust to convey or encumber the life tenant’s interest. If the life tenant does not sign the deed or deed of trust, then the interest conveyed in the deed or deed of trust remains subject to the interests of the life tenant including, perhaps, occupancy rights. Likewise, if the life tenant is alive, then any judgment against the life tenant will need to be released just the same as a judgment would need to be released against any other owner.

If the life tenant is deceased, then any judgment obtained against the life tenant may usually be disregarded. Since the life estate terminates when the life tenant dies, the judgments do not attach to the remainder interest.

But there is at least one possible scenario where a judgment could outlast a life tenancy. Consider a deed in which A grants to B, reserving a life tenancy in A. If a judgment was obtained against A prior to the date when this deed was recorded, then the judgment would remain effective against both A and B. Likewise, if such a deed was made and recorded with the intent to delay, hinder, or defraud creditors, then the judgment may also be effective against both A and B. But these are unusual situations. In general, a judgment obtained against a life tenant cannot outlast the life estate.