Property Ownership Forms

Property Ownership Forms


the property ownership discussion can be
found in chapter 4 of the farm transition material way property is
titled on a deed can and will have a direct impact on how it can be
transferred at a later date important without you understand how this
interaction occurs different ownership forms and limitations that can occur
when that property is to be transferred to someone else so how can real property
beyond these simple that’s complete ownership basically the mine mine mine
situation is all mine nobody else has any control a life estate use the
property for life then provide an avenue to give it to somebody else there’s also
co-ownership issues typically we seek ownership tenancy in common joint
tenancy and the very rare case of tenancy by the entirety in Oklahoma
that’s pretty much point that’s long gone so the ones we see the most are
tenancy in common and joint tenancy so what’s fee simple absolute that’s that
mine mine mine situation it’s pro potentially perpetual in duration you’ll
own it until you decide to sell it or transfer it it’s not subject to any
conditions however there are certain things imposed by the government for
example dumping etc that’s not allowed so for the most part you can use it
utilize it any way you wish as long as you do not do things that are illegal or
accepted by the government since all schoener ship rests with the owner
property goes nowhere at death without some force acting on it that being
either the probate process or a trust document that then directs where how
that property is transferred a life estate basically there’s two parts to a
life estate you have a present state or present interest that’s defined by
someone’s life a future of state or future interest at rests upon the event
of death becoming the remainder so the creation
you have two ways of doing it i granted life estate which we presented here you
create it to grantee number one for as long as he or she lives so it I have the
property I grant it either to myself or someone else and then upon death of that
person then it goes to another individual grantee number two or
granting number 14 is that person is alive strings attached to a life estate
these can occur hold of a present interest may not deprive the remainder
Minh of their interests other words they can’t convey it sell it etc there are
certain things that has to go to the remainder Minh that also includes any
leases etc that are existing on the property a time of death the holder of
the present interest prohibited from committing waste abuse of the property
letting it run down not maintaining it etc so has to be maintained has to be
taken care of by the current interest owner or holder the holder of the
present interest again cannot convey the interest until death it goes to the
remainder minh they can’t make it go to somebody else i will can’t act upon it
to say i don’t want the remainder when you have it i want somebody else to have
it it has to go to the remainder Minh tenancy in common basically each owner
has an undivided interest in the whole property creation usually occurs when
property is conveyed to multiple parties with no further instructions in other
words I want sons a B and C to inherit this piece of land there’s no
specifications as to what portion of that land they get what 80 acres how its
divided etc they each own an undivided interest in the full property each
interest can be sold or inherited separately however can cause problems
with one more of the owners want to convey it
separately so in other words if I want to sell my interest and I hold an
undivided interest it may not be as easy to sell that as it would be if I had to
actually lay bounds upon the property that I own so consequently when we have
pretendin see in common there’s often a situation where it is not easily sold or
conveyed on a separate basis usually has to all be done at once can’t get
extremely messy when more than one generation is involved because parents
owning the property then the next generation gets a hold of it they may
not see the same things the same way as the original generation and they may
wish to have their parts sold off get out of it so it creates some issues
where we may have some problems trying to resolve who has ownership of what
parts etc so when you look at tenancy in common it does create an equal
distribution but it also can create some other messy situations when one of the
parties once out of that tendency joint tenancy with rights of survivorship very
common among married individuals basically co tendency with a
survivorship function what that means is joint tenants the surviving joint tenant
receives the property can’t be conveyed to anybody else interest always are
balanced each owning a equal share their surviving joint tenant receives the
interest of the decedent so no matter what happens whoever dies first it goes
to the surviving joint tenant no if ands or buts a will has absolutely no effect
on the property transfer process because joint tenancy by its name has to go to
the surviving joint tenant they will or trust cannot have impacted so a life
estate testamentary trust has no impact on death the surviving joint tenant will
receive title to the property a problem that can happen disinheriting
children should have surviving spouse remarry husband and wife on a farm
husband passes wife inherits the whole hundred and sixty acres wife then
remarries their original children can be deserted this eric disinherited should
the wife pass before the new husband if they put it in joint tenancy at that
time of the day married consequently you really like to look at this because
joint tenancy always goes to the surviving joint tenant we can get the
situation where that property passes outside of the original family transfer
on death deeds basically it’s a method of doing a property transfer voiding a
life estate also avoiding the problem of desk drawer deeds in other words we take
a deed we draw it up we throw in a desk drawer when I pass the children need to
go file that deed at the courthouse there are some issues that can occur
with that one they can’t find the desk drawer where it was held other
situations it may not have been a valid deed in the first place so by doing a
transfer on death deed we get an alternative to those problems transfer
on death deed filed at the courthouse it can be revoked or changed at any time
prior to that creators death upon death it becomes active prior to that it can
be changed it can be done away with as long as the original owner does it it
like I said it does not convey any interest in that property until the
death of the grantor prior to that time anything can be changed it cannot be
revoked by a will so if you create one of these and you forget about it and you
put together a will of the later date that transfer on death deed holes so how
does it work you draft a deed describing the property that’s going to be
transferred you describe the person that’s going to receive it upon death
you sign and notarize the deed then it is recorded at the county land records
office and it has to be recorded prior to the death of the Grand
Tour it can’t be thrown in the desk and then waited till later has to be done
prior to death so the beneficiaries what they have to do to claim their property
well they have a certain amount of time that they have to get this done so if
you’re going to create a transfer on death deed you need to tell the
beneficiary that exists then that upon death they need to go to the courthouse
county land records office file an affidavit basically st. stating that
they are to receive it death of the Grand Tours occurred whether that Grand
Tour grantee were husband and wife the legal description of the property has to
be filed within nine months of death if not property reverts back to the estate
and then any estate documents will have then the action upon that at being a
will or trust or I rules of in the state secession where we don’t have a will
warnings property transferred by a transfer on death deed still considered
as part of the grand tours of state for state tax purposes even though we have
the deed in place it’s still mine still in the owner’s property until death
occurs the beneficiary does not take the property until death and at that time
they take the property subject to all claims on the property for example if
there is a debt owed to a bank they take the property with that debt included the
use of it must closely coordinate with your existing estate plan to avoid any
conflicts for example if you set up in your will and then you later put
together transfer on death deed the will does not have an impact on it you may
create some situations that you did not think about when you created the deed so
be very careful that you don’t have something in the will that is negated by
the transfer on death deed so in review Tyler property got a look
at what how its titled to determine what tools can be used to transfer ownership
like I said if you’ve got joint tenancy with right of survivorship no matter
what you do there is nothing that can be done that will change who gets it has to
go to surviving joint tenant poured to understand the various methods available
to transfer the property and the income and estate tax consequences that exist
for example in another session we talked about the state tax tools gifting if you
gift property away before death there are some income tax and estate tax gift
tax consequences that what can occur really talk to your accountant get sound
legal advice so that you have an idea of what’s going to happen before you do it
so be sure to list confident legal tax advice valuate the options make sure
that you fully understand the pros and cons of your decision before you make
the decision and put it the action in place again for more information on the
farm transitions and coverage of property distribution tools go to the
website look at the handbook it’s available for further detail on
downloading thank you

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