Tangible property
property that has a physical existence
ex: books/clothes
intangible property
value derived from its legal rights it gives to its owners
ex: money/stock/classic cars/ antiquefurniture
Can you get taxed if you own or controll property?
yes
fee/fee simple interest
highest form of ownership
-generally the person who owns the property
what is property?
-it is all about rights
-"a bundle of sticks"- ea. stick has a value and the value of all those rights is your wealth, which is your estate
property->
Value->Wealth->estate
Estate is?
the value of your rights
what is real property?(aka real estate)
Land and any improvements on that land that are permanettly attched to that land
what is personal property?
all property that is not real property
is a vinyard personal or real property?
land and vines are real estate
grapes are personal property
forest personal or real property?
land and trees if they are plante
-if trees are on the ground then personal property
are mineral rights personal or real property?
depends
-in Ca -> personal property
what estates have present inerests?
-fee/fee simple
-life estate
-estate for years
life estate
-the next mostpowerful form of ownership
-when an individual can use, possess or enjoy property until they die
estate for years
-when en individual can use, possess, or enjoy for ANY period of time less than life, usually more than a year
reversion
a future interest that an individual has on a peice of property. once the lesser estate has expired, the property will return to the original owner
remainder
once A transfers to B, when B dies it transfers to C
tenents in common
2or more people holding propertywho are NOT married
-both have undivided right to use possess and enjoy that property
-default ownership
-does not have to be =, but must be specified in tittle
joint tenants
-has automatic right of survivorship!
-MUST own = shares
-No ability t pass on. automatically terminates when you die
- does not have to go throgh the courts
-CAN be unilaterally severed
unliateral severence
can sever their own interestwithout consent of the other joint tenants
Tenents by the entirety
-SOLEY for married couples
-w/right of survivorship
-NOT in CA
-NO unilateral severence
testamentary doc
any document that transfers property upon death
ex: will/trust/life insurance
An heir may be a bene. , but a ?
Bene may not be a heir
specific beneficiary
-have PRORITY
-receive specific property
revocable transfer on death deed
-applys only to personal residence
-does not allow to alter bene
-does not provide for contingencies (B has to survive A)
-Avoids probabte process
Custodian Account
-okay for small amts of$
-does not have alot of oversight
-has a custodian appointed by the court who manages funds for miinor
trust
-require you to be insured
-lots of provisions in place to make sure $ stays safe
-for large amts of $$
-trusty is responsible for their actions
beneficiary @ law
a person that recieves property because of the law
who has the right to claim bene. at law?
pretermitted heirs &spouse
pretermitted heir
bio child who can prove that they were mistakenly forgotteen
Power of Attorney (POA)
Legal doc fiving one person(the agent) the power to acxt for another prson (principal)
Limited Power of Attorney
agrants agent specific powersto make decisions
-is void when principal dies or loses capacity
durable power of attorney
exists when person executes a power of attorney which will become or remain effective in the event he or she should later become disabled
-void upon death
general power of attorney
has all legal capacity, except to change designated bebe or will
-voids when princial dies or loses capacity
Springing Durable Power of Attorney
A springing durable power of attorney is activated when an agent receives notification from a physician that the principal is found to be mentally or physically incompetent.
durable power of attorney for health care
lets you name someone else to make decisions for your health car (written)
surrogate decision maker
family allowed to make decisions, if principal is incapacitated as long as they all agree
Statutory Surrogate
by law if you have capaity you may ORALLY appoint health care decision maker
-lasts 60 days or extent of illness whichever is shorter
-takes presedence over DPOA for health care
Testimentary Capacity
1. you must understand that you are executing a will
2. understand the nature, extent and situation of your property
3.you must undrstant who your next of kin are and the impact your gift will have on them
a standard type written will
-in CA requires 2 wittnesses;other states 3
-witnesess cannot be bene
-can be anyone who is an adult
-needs to be signed by testator
- needs to have words of testimentory intent