Estate Definition An interest in property that is

Estate Definition • An interest in property that is or may become possessory • Ownership defined in terms of duration .

Property Rights – PPAID • • • Possession Profit Abandon Improve Dispose • Sell • Gift • Pass to Heirs • Study Aid – PPAID .

Estates in Property Estates Leasehold Freehold (Non-leasehold)

Leasehold Estate • Hold or use for fixed duration • Subject to contract • No ownership • No alienation .

Freehold Estate Life Estate Fee Simple • Most extensive estate possible • Not subject to restriction • No limit on duration • No limit on disposition • But subject to Gov’t powers • Land use regulations • Subject to Laws • Taxation • Eminent domain • • Limited in duration Life of tenant Terminates at death No interest to pass to heirs Life of Another (Pur Autre Vie) Terminates at death of another Can be passed to heirs Duty to Exercise Reasonable and Prudent Care.

Estate For Years Estate for Years • Grantee gets possession of the land for a term of years. • This is considered a leasehold estate not a freehold estate. Example: 99 year leases on Federal or State Lands .

Reversionary Interest • • Grantor transfers less than full estate Reverts to grantor alone Conveyance Type of Estate James to Ellen for life Life estate to Ellen; then reversionary interest retained by James

Vested Remainder Conveyance Type of Estate Abner to Don for life, then to Tom in fee simple Life Estate to Don, Vested Future Remainder to Tom, nothing to Abner .

Contingent Remainder Conveyance Type of Estate Abner to Don for life, then to Tom if he survives Don. if not then to Alice Life estate to Don, contingent future remainder to Tom, and contingent future remainder to Alice .

Property Ownership Interests Present Interests • Fee Simple Estate • Largest most complete ownership • Split Ownership • Life Estate • Duration measured by a life Future Interests • Remainder Interest • Future enjoyments • Vested / contingent • Reversionary Interest • Future return to grantor

Duty to Protect and Preserve Waste “By act or omission causing permanent damage or unreasonable changes to its character or value” • • • Failure to pay taxes Failure to protect from loss Failure to make necessary repairs Destruction of income producing potential Neglect

Spousal Right of Election • Statutory right to avoid disinheritance • Choice between Will and Spousal Share • “take against the will” • Replaces Dower and Curtesy http: //www. chilemails. com .

Legal vs. Equitable (Beneficial) Ownership Legal Title Fiduciary • Property Trustee or Guardian • Holds bare legal title • Invest/manage • No rights to possession • No rights to use or enjoyment Equitable Title Beneficiary • Entitled to property benefits .

Situs Where Located or Kept • Tax and Transfer Importance • Real Estate: State of location • Tangible Personal Property: Where located • Intangible Personal Property: Any state that has reasonable connection .

Domicile • Consider permanent residence • Assets treated differently • Evidenced by daily life, acts and conduct • Auto Registration • Driver’s license • Bank accounts • Voter registration • Pay income taxes • SS Administration Address • Passport • Reference in Will • Residence > 50% of year • Memberships