Associate Attorney
In Varano v. Varano, a Florida appellate court confronted a probate and real estate conflict packed with issues of authority and fiduciary missteps: a widow holding a life estate in property attempted to sell it —even though the remainder interest was held in trust, and the deed was not a Lady Bird deed (i.e., it did not reserve a power of sale).
Initially, the widow signed a contract for the sale of the property that was held by her and her late husband as a life estate with their joint trust holding the remainder interest — a trust that had been amended to give her trustee powers in place of one of her stepchildren. One of the decedent’s sons challenged the sale and filed a lis pendens. Under legal pressure and the buyer’s threat of a lawsuit, the parties settled — allocating 50% of sale proceeds to the widow, 22% to the trust, and the remaining 28% to escrow, pending resolution between the parties or by a judge.
The widow later filed a declaratory judgment action claiming that she was entitled to the 28%. But the court ruled against her, holding that when she attempted to sell the property in fee simple, she overextended her authority. As the Court noted “[a]ll that she had was a life estate. No more. No less.”
Moreover, her arguments that she could sell the property because she controlled the remainder interest were also futile. Her dual role as trustee and life tenant created an impermissible conflict of interest. Self-dealing undermined the transaction, even where partially ratified.
This decision serves as a stark warning: unless a deed reserves a power of sale — such as under an
enhanced life estate (Lady Bird) — a life tenant cannot unilaterally sell the underlying property, even if they happened to be the trustee of the trust which held a remainder interest.
Takeaway: Life tenants must understand their limits. And trustees must avoid conflicts of interest. Selling trust property where you’re both life tenant and trustee without express authority is a fast track to
litigation — and potential forfeiture.
At Boatman Ricci, we navigate the intersection of probate, trust law, and real property with care —
because good intentions aren’t enough to overcome fiduciary limits.
Need help analyzing deed restrictions or trustee authority? Contact our team to avoid costly missteps.
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