Ch 3: Ownership of Property Flashcards Preview

Fundamentals of Estate Planning > Ch 3: Ownership of Property > Flashcards

Flashcards in Ch 3: Ownership of Property Deck (17):
1

What type of items are consisted "real property"?

Land and permanent fixtures and attachments such as buildings, trees, and crops.

2

Name 3 things that are considered

a) tangible personal property
b) intangible personal property

a) tangible - jewelry, furniture, or cars
b) intangible - bonds, leases, or stock certificates

3

What are the two types of "present interest" property?

a) Fee Simple Estate
b) Split Ownership (life estate and estate for term of years)

4

This very common type of ownership is the largest, most complete and form of ownership.

Fee Simple Estate

5

How is a "life estate" measured?

measured using an individual's life

6

An "estate for term of years" measured using a...

specific duration period.

7

What are the two types of "future interest" property?

a) remainder interest
b) reversionary interest

8

What is "reminder interest"?

A present right to a future enjoyment.

9

Remainder interest can be _______ or _______.

vested or contingent.

10

This is when a grantor retains the right to future return of property.

reversionary interest

11

Because of his father's will, Alan Abel is given the exclusive use and possession of his father’s house while he's alive. However, when Alan dies, the house will go to another beneficiary named on his father’s will. What rights does Alan have while he is living and when he dies?

Alan can live in the house. He can also allow others to live in it, he can rent it, or sell his interest in the property
Alan’s "buyer’s interest" in the property ends at Alan’s death.

12

A "present split ownership" right will always create a...

future interest.

13

There may be a ______ right with a split ownership.

non-transferable

14

What happens to your digital assets when you die?

Property transfers back to original service provider. This is an example of reversionary interest.

15

If James owns Blackacre in fee simple absolute (which complete ownership) and he conveys Blackacre to Ellen for her life.

What type of interest will Ellen have?
What will James have to retain and why?

a) split interest, present interest, and life estate interest
b) James will need a reversionary interest in Blackacre because he conveyed less than his total interest, remember he only gave Ellen the property while she is living. So, at Ellen’s death Blackacre reverts to James, if living, or to his estate.

16

What will a fiduciary need in order to manage property for the benefit of a person they are taking care of?

legal title

17

What is an "equitable title" used for?

It helps the beneficiary retain equity rights and benefits to property if they are unable to take care of themselves.