Ch 3: Ownership of Property Flashcards
(27 cards)
Decedent-spouse’s gross estate includes only the decedent’s one-half interest in the community property, even if…
titled solely in decedent’s name.
The most complete and FULL form of ownership.
Fee Simple Estate
A life estate measured using…
an individual’s life.
This is when a grantor/donor retains the right to the future return of property.
reversionary interest
Community property is where each community spouse is deemed to own…
a one-half interest during marriage regardless of which spouse actually paid for ownership.
An estate for term of years measured using a…
specific duration period.
What is reminder interest (leftovers)?
A present right to a future enjoyment.
Remainder interest can possibly be _______ or _______.
vested or contingent.
A present split ownership creates a…
future interest.
What type of document will a fiduciary need to manage property for a ward?
legal title
What is an equitable title used for?
It helps a beneficiary retain equity rights to property.
What is situs?
The location of the property.
Why is right of survivorship great for married couples?
Because only a portion of the property will get a step up in basis when the first spouse passes away, not the entire value of the property
Based on situs, how will the following types of property taxed?
- tangible and real property
- intangible property
- taxable by the state location
- taxable by any state that has a reasonable connection to the property
What is domicile?
Where you live.
What rights do tenancy in common owners have over the property?
sell, dispose, exchange, will, or gift their interest
Tenancy in common ownership is considered ______ interest.
undivided
What happens at death under a Joint Tenancy with Right of Survivorship ownership?
The interest passes to surviving tenant(s)
Identify the following types of ownership:
- Tenancy in Common
- Joint Tenancy with Right of Survivorship
- Tenancy by the Entirety
- unequal ownership
- equal ownership can be severed by sale or transfered by operation of law
- ownership of property by only be married couples that cannot be severed without spouse consent.
What are the exclusions to community property if the property is acquired…(5)
- prior to marriage
- by inheritance
- by gift
- by court order
- by transmutation
What are the ADVANTAGES of Joint Tenancy with Right of Survivorship and Tenancies by the Entirety? (6)
- limited access by creditors
- convenience
- a feeling of security
- avoid probate delays
- reduces administrative and transfer costs
- privacy
What is commingling and transmutation?
Comminling is the mixing and entangling of spousal community and separate property interests.
Transmutation is the act of changing the nature of one piece of property into another
This rule provides that the character of an asset is established at the time the asset is acquired and cannot be altered by later events.
time-of-acquisition rule
How can transmutation occur?
By commingling or by other means
