Types of Present Interest/Future Interest/Forms of Property Ownership

Fee Simple

a fee without limitation to any class of heirs; they can sell it or give it away

Life estate

an estate whose duration is limited to the life of the person holding it at death rights either revert to grantor or pass to predetermined remaindermen

Estate For Years

Holders use or benefit from property is limited to a specified term of years, holder has no rights of disposition, at holders death rights either revert to grantor or pass to predetermined remaindermen

Determinable Interest/Subject to a condition

Property passing to another so that upon occurrence or failure of occurrence of some contingent event the estate will pass from holding grantee to another. At triggering condition rights either revert to grantor, pass to predetermined remainder persons.

Reversionary

Property will or may be returned to its original owner

Remainder

Property will or may pass to successive owners at a given time or occurrence of an event

Present Interest

Fee Simple, Life Estate, Estate For Years, Determinable or Conditional

Future Interest

Control of Future, Reversionary, remainder

Sole Owneership

Titled in the name of one person, full rights to property in life and death, Transfers under decendents will or intestate estate, aka Tenancy in Severalty, Subject to Probate

Joint Tenancy

Ownership by multiple individuals who have an undivided interest and survivorship rights, the primary characteristic is the right of survivorship to the surviving joint tenants distinguishing it from Tenants in Common, decedents share passes to the surviving tenant by operation of law independent of will or trust, 4 unities at common law, time, title, interest and possession, can be partitioned- distinguishing it from T/E, avoids probate

Tenancy By the Entirety

Form of Joint tenancy held only between spouses adding a 5th unity: person, ownership is held in the entirety so that interests may not be partitioned without the consent of both parties lending some creditor protection, not recognized in all state, some states only allow the ownership in real property not personal, avoids probate

Tenants in Common

Owned by multiple individuals who each have separate but undivided interest, each co-tenant may sell gift or transfer their interest during life or at death, No survivorship rights, share interest may be unequal, title reflects ownership interest, the default form of ownership when a unity is severed in J/T or T/E, subject to probate

Community Property

All property that spouses acquire by their joint efforts during their marriage, states recognize pre and post marital agreements, varies by state, some added rights of survivorship, subject to probate unless with rights of survivorship

Contract Property

Property subject to contractual beneficiary designation, ex: Life insurance, annuties, IRAs, Qualified Retirement Plans, Pay on Death/Transfer on Death, avoids probate

Living Trust Property

Property legally titled in the name of the living Trust is subject to the terms of the trust agreement, seperated legal ownership from beneficial ownership, assets must be retitled in the trust's name, without this trust is unfunded, avoids probate

Forms of Ownership that avoid probate

Joint Tenancy, Tenants by the Entirety, Contract Property - with a valid beneficiary named, Living Trust Property

Forms of Ownership that do not avoid Probate

Sole Individual, Tenants in Common, Community Property