Ownership of Property

1
Chapter 3

• Ownership of Property

2
Definitions
KNOW THESE TERMS -- not word for word
defini-tions but how they work

• Real Property versus Personal Property
• Tangible Personal Property versus Intangible
  Personal Property
• Fee Simple Estate
• Life Estate
• Estate for Term of Years
• Remainder Interest
• Reversionary Interest
• Situs / Domicile
• Qualified Joint Interest
• Nonqualifed Joint Interest

Future Interest

• Joint Tenancy
• Tenancy by the Entirety
• Tenancy in Common

3
Types of Property

• REAL
• (Real Estate)

PERSONAL (Personal Property)
Tangible
Intangible
4
Types of Ownership

• Fee Simple Absolute outright ownership
• Life Estate .. split ownership
• Estate for Term of Years
• Remainder Interest
• Indefeasibly Vested Remainder versus Contingent
  (Future benefit versus a present interest)
• Reversionary Interest .. Comes back to the
  grantor.

5

• We also own property with others as follows see
  page 68
• Joint Tenancy (with Right of Survivorship)
• ownership by 2 or more persons .. dont have to
  be married. Property passes to the surviving
  joint owner by operation of law.
• Ownership interest must be equal
• Any joint owner may sell his interest, but a sale
  will sever the joint tenancy
• Joint property not transferable by Will
• Property passes outside probate

6

• Tenancy by the Entirety
• only between married persons
• . more restrictive than joint tenancy.
• At death, interest passes to surviving spouse
• Primary difference . Neither spouse may
  terminate the tenancy by conveying his interest
  to a 3rd party w/out the consent of the other
  tenant.

7

• Tenancy in Common ..
• ownership by 2 or more persons ... related or
  not related. Generally, joint ownership is
  assumed to be Tenancy in Common if the co-owners
  are not married.
• Ownership interest may be unequal.
• May be in real or personable property.
• Each tenant is free to sell his or her interest
  in the property to whoever he wishes. Consent or
  even knowledge is not required.
• Owner is free to sell, dispose, trade, gift or
  will his interest.

8
Domicile

• Everyone needs to claim a state of residency.
  Why??
• For most of us, domicile is easy to determine.
  But if you have multiple residences or you move
  frequently, domicile may not be clear

9
Situs

• Where is the property located?? States will tax
  investment that are sitused in their state.
• Example l Oil well in Oklahoma
• l Office Building in New York
• l Business investment in another
  state