Feb102026
Probate Q&A Series

What can we do if the life tenant stops paying property taxes or homeowners insurance on the property? – North Carolina

Short Answer

In North Carolina, a life tenant generally has the duty to pay the property taxes on the life-estate property, and a remainder beneficiary who pays those taxes can usually seek reimbursement from the life tenant. If unpaid taxes put the property at risk of tax foreclosure, the remainder beneficiaries may need to pay to protect the title and then pursue repayment and other court remedies. Homeowners insurance is often addressed by the deed or agreement; if coverage lapses, the practical fix is usually to obtain coverage to protect the property and then address reimbursement and enforcement through negotiation or court.

Understanding the Problem

In North Carolina probate and real estate disputes, a common question is what a remainder beneficiary can do when a life tenant stops paying ongoing carrying costs—especially property taxes and homeowners insurance—on a property held under a life-estate deed. The decision point is whether the nonpayment is creating a real risk to the property (like a tax foreclosure or uninsured loss) and what steps the remainder beneficiaries can take to protect the property while the life tenant is still alive and in possession. This issue often comes up in families after a death, when different documents appear to point in different directions about who should benefit from the property and who should manage the estate.

Apply the Law

Under North Carolina law, the life tenant generally bears responsibility for paying property taxes assessed on the property during the life tenancy. If the remainder beneficiaries (remaindermen) pay those taxes to protect the property, they can typically sue the life tenant to recover what they paid. If the life tenant allows the property to be foreclosed and sold for nonpayment of taxes, the life tenant can be liable to the remaindermen for resulting damages. Insurance is not addressed by the same tax statute, so the starting point is usually the life-estate deed (and any related agreement) plus general property-law principles about preserving the property’s value and avoiding conduct that harms the future interest.

Key Requirements

  • Valid life estate with remaindermen: The property must be held under a life estate (life tenant has the present right to possess/use; remaindermen have the future ownership when the life estate ends).
  • Nonpayment that creates a protect-the-title risk: Unpaid property taxes can become a lien and lead to enforcement actions; a lapse in insurance can expose the property to uninsured loss.
  • Remaindermen payment and documentation: If remaindermen pay taxes (or pay to reinstate/obtain insurance), they should be able to prove what was paid, when, and why (to protect the property), and then pursue reimbursement or other relief.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a family property held under a life-estate deed with two remainder beneficiaries. If the life tenant stops paying property taxes, North Carolina law places the tax-payment duty on the life tenant, and the remainder beneficiaries may pay to prevent tax enforcement and then pursue reimbursement from the life tenant under the statute. If the life tenant also lets homeowners insurance lapse, the immediate concern is protecting the property from uninsured loss; the next step is to review the life-estate deed and any written terms to see whether insurance was assigned to the life tenant and what enforcement options exist.

Process & Timing

  1. Who acts first: A remainder beneficiary (or both) usually acts to prevent harm. Where: For taxes, payment is made to the county tax office where the property is located; any reimbursement lawsuit for real property is filed in the General Court of Justice in the county where the property sits. What: Obtain a current tax status/ledger from the county and keep proof of payment; obtain proof of insurance cancellation/nonrenewal and any replacement policy documents. When: As soon as nonpayment is discovered, before penalties, enforcement steps, or a tax foreclosure process advances.
  2. Try to resolve before filing: Send a written demand to the life tenant requesting immediate proof of tax payment and active insurance, or repayment if the remaindermen paid. If there is an estate open, consider notifying the personal representative because document collection and property issues often overlap with estate administration and family settlement discussions.
  3. If nonpayment continues: Consider a civil action seeking reimbursement for taxes paid (and, depending on the facts and claims available, additional relief aimed at preventing ongoing harm to the property). The court can address money owed and, in appropriate cases, orders designed to stop conduct that threatens the property’s value.

Exceptions & Pitfalls

  • The deed may change the default expectations: Some life-estate deeds spell out who must pay taxes, insurance, and major repairs. The written terms matter, so the deed should be reviewed before assuming the default rule applies to every expense.
  • Taxes are clearer than insurance: North Carolina has a specific statute placing the tax duty on the life tenant, but insurance disputes often turn on the deed language, lender requirements (if any), and practical proof of risk and loss.
  • Paying to protect the property is not the same as giving up rights: Paying delinquent taxes to prevent a sale can be a protective step, but reimbursement usually requires documentation and, if contested, a court case.
  • Do not wait for a crisis: Once taxes become seriously delinquent, costs and leverage can change quickly. Early verification with the county and prompt written communication can prevent avoidable escalation.

Conclusion

In North Carolina, the life tenant generally must pay the property taxes on life-estate property, and a remainder beneficiary who pays those taxes to protect the property can typically sue the life tenant for reimbursement under N.C. Gen. Stat. § 105-384. If nonpayment threatens a tax foreclosure, the practical first step is to confirm the delinquency with the county tax office and pay what is needed to protect the title, then pursue repayment and enforcement in the county where the property is located.

Talk to a Probate Attorney

If a life tenant is not paying property taxes or keeping insurance in place and the remainder interest is at risk, our firm has experienced attorneys who can help clarify the life tenant’s duties, document what is owed, and take steps to protect the property. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.