Assignment 6 - An Overview of Estate Planning Flashcards
- type of ownership
- exists when property is held jointly and only between a husband and wife. (always in equal parts)
- survivorship rights can only be term’d by BOTH
- protected by claims of cred. - asset protection vehicle in estate planning
tenancy by the entirety
property that is handled and distributed by the personal rep upon a person’s death
probate estate
trusts that allow an unlimited duration and that theoretically can last forever
dynasty trusts
type of will under which the debts, expenses and taxes of an estate are paid and then the residue of the probate property is transferred into a revocable living trust or an insurance trust
pourover
term for land and everything attached to the land w/ the intention that it be part of the land
real property
- type of other prop. interests
- term of person entitled to property after a life interest or term interest has ended
remainder interest
term meaning to die w/o a valid will
intestate
legislation that states that property acquired during marriage is owned 1/2 by each spouse
Uniform Marital Property Act
- type of ownership
- most basic form
- holds prop. in own name
- can sell it, use it as collateral, or give it away
- can pass prop. on to heirs w/in limits
Outright Ownership
- type of ownership
- 2 or more ppl have ownership rights in the same prop. at same time
joint ownership
- type of joint ownership
- if 1 of joint owners dies, ownership in prop. passes fully to other joint owner(s)
- exists b/w anyone
- equal parts of ownership
- survivorship can be destroyed by 1 of joint tenants at any time through sale of interest in prop., attachment by creditors, a court action for partition
Joint Tenancy w/ Right of Survivorship (WROS)
- type of joint ownership
- prop. is jointly held, but owners do not have the right of survivorship
- owners also don’t have to have equal parts in the property
Tenancy in Common
- type of ownership
- prop. that either spouse acquires during marriage from his/her income while living in a community prop. state
- each spouse owns 1/2 of prop. acquired during marriage
- this right moves with the couple
Community Property
- type of other property interests
- occurs when a fiduciary, appointed by the deceased, is legal owner of prop. that passes into a trust
- respons. for enacting terms of the trust agreement
legal interests
- type of other property interests
- entitles holder to income from or use of the prop. or a portion of the prop. for his/her lifetime
life interests
- type of other prop. interests
- entitles holder to income from or use of a property for a term of years
term interests