Transfer of Ownership

Transfer of Ownership

• Estates involve the ability to transfer ownership/property to heirs indefinitely.
• An Estate in Land grants ownership rights to real property.
• These rights are determined by the property's immobility, as an interest derived from the land that can’t be moved.
• These rights are also determined by the potential for indeterminate duration of ownership, property able to be passed on forever if requirements met & follow law such as paying taxes & mortgage on time.
• Freehold and Non-freehold estates are two types of estates.
• An Estate for Years has a definite time period.

Fee Simple Estate

• Fee Simple Absolute/Title/Estate is the most complete form of ownership with a full bundle of rights, not subject to conditions or accidents.
• Fee Simple Defeasible/Determinable/Qualified provides a high degree of ownership but with conditions or exclusions that impact the bundle of rights.
• Condition Subsequent With Right of Re-Entry means the title/interest isn't transferred until a condition is met and lasts only as long as the condition is satisfied.
• Conditional Ownership With Reverter Clause results in the title reverting to the seller if a condition is broken due to reversion rights, without needing legal action.

Life Estate

• A Life Estate is governed by statutory law.
• Life Estate defines property title/freehold estate based on the length of someone's life and ends at death.
• Life Estates involve a grantor of life estate and either a remainderman or reversion arrangement to avoid probate.
• A Life Tenant holds and has the right to sell, mortgage, or lease their ownership or interest in the property, but the estate is not inheritable.
• Conventional life estates depend on the life of the person receiving the estate. once the person dies, the property goes to the remainderman.
• Pur Autre Vie life estates depend on the life of another person, not the life tenants.
• Granted title can be used to take care of a special needs child, having title as long as the child lives.
• Once the the child dies, the title reverts or remainderman.
• Legal Life Estates are established by law and end at death, with ownership reverting to a remainderman.

Dower, Curtesy, & Homestead

• Dower & Curtesy are old common law concepts replaced by the Uniform Probate Code, which gives a surviving spouse a portion of the estate but restricts property conveyance and is subject to statutory share rights, like in Utah.
• Dower refers to a wife’s rights to her deceased husband’s property.
• Curtesy refers to a husband’s rights to his deceased wife’s property.
• Historically, 1/3 dower rights went to the widow for herself and family.
• Homestead Estates protect a piece of property from creditors and judgments (except mortgages and taxes) in states that permit them, with varying filing requirements.
• An individual can only have one homestead at a time, even with multiple homes.

Wills

• A Will is a document listing assets (real or personal property) and their intended recipients.
• Wills may be subject to probate.
• Devise refers to transfer of real property via a will, while bequest/legacy refers to transfer of personal property; this distinction may be legally blurred to honor the testator's intent.
• Devisor is the person who makes the will.
• Devisee is the person who receives real property by will.
• Devises refer to real property in a will.
• Descent refers to acquiring ownership of an estate through inheritance.
• Testate/Testator/Testatrix refers to someone who died with a will.
• Intestate refers to someone who died without a will, potentially leading to Escheat.
• Executor/Executrix is the person who carries out the will's instructions.
• A Formal/Written Will is drafted by an attorney and is most common.
• A Nuncupative Will is an oral or deathbed will, allowed in some states with witness requirements by at least 2 people.
• A Holographic Will is a handwritten will that needs to be witnessed.
• A Living Will outlines wishes regarding life support, organ donation, etc., in case of incapacitation, with a grantor managing assets while alive.
• When the grantor dies, assets are transferred to trustee of choice.
• A Codicil Will represents a change or amendment to an existing will.
• Probate is a court process for handling asset distribution, in which the person’s intentions are considered.
• Not all wills need to be probated.
• Probate can be lengthy and a huge financial burden.