Page 28

UNOFFICIAL 1725.1-28

cannot do so with respect to the entire property; and (3) There is no automatic survivorship rights to a deceased's ownership interest as it passes to his or her estate or heirs. (e) Property under an agreement of sale shall be allocated between the buyer and seller in accordance with their respective interests as follows: (l) The buyer's interest shall be the fair market value of the real property minus the balance due on the agreement of sale; and (2) The seller's interest shall be the balance on the agreement of sale. (f) Property subject to a life estate interest: (1) Is established by a will or deed which conveys property to a life estate owner or life tenant for life and to one or more remaindermen upon termination of life estate; (2) The current value of the property shall be allocated between the life tenant and the remainderman by determining the present worth of their respective interests using the Life Estate and Remainder Interest Table (26 C.F.R §20.2031-7 and 49 FR Vol. 49 No. 93/5-11-84), that corresponds to the age of the life tenant; (3) The life tenant: (A) Owns the physical property for the duration of the life estate; (B) Has the right to possess, use, and obtain profits from the property; (C) Can sell his or her life estate interest; but (D) Cannot take any action concerning the interest of the remainderman. (4) The remainderman: (A) Has ownership interest in the physical property; (B) Does not have the right to possess and use the property until termination of life estate; and