CLU - CFP Topics 53 - 73 Estate Planning: Real Property Ownership

Question 1

Real property generally consist of:

Answer 1

• The land
• Under the land
• Over the land
• Attached to the land

Question 2

Ownership titles are controlled by ___ law.

Answer 2

State

Question 3

Probate on real estate is performed where real estate is ___.

Answer 3

located

Question 4

Personal property is done in state of ___.

Answer 4

domicile

Question 5

Real Estate Titling: List types limited to real property

Answer 5

• Fee simple
• Tenants by Entirety
• Tenants in common

Question 6

Real Estate Titling: List types covering real & personal property

Answer 6

• JTROS
• Community property
• Quasi community property
• Trusts

Question 7

Title:

• Sole ownership of real estate
• Requires will to avoid intestacy

Answer 7

Fee simple

Question 8

Title:

• Two or more persons with the sharing of interest, title, time, possession
• Rarely appropriate titling except for married couples
• Serves as will substitute

Answer 8

Joint Tenants with Rights of Survivorship (JTROS)

Question 9

Title:

• Joint ownership by married couple
• Nothing can be done to property without approval of both spouses
• Used as a will substitute

Answer 9

Tenants by Entirety

Question 10

Title:

• Property acquired during marriage via W-2 income or self employment income while in a community property state
• Nothing can be done with the property without consent of both spouses
• It requires a will to avoid intestacy

Answer 10

Community Property

Question 11

Title:

• Property acquired by W-2 income or self-employment income while married will be treated as community property while domicile in a quasi state irrespective of where the property was acquired.
• It is relevant only for divorce or death
• Requires a will to avoid intestacy

Answer 11

Quasi Community Property

Question 12

Title:

• Major benefit is the ability to have unequal shares of ownership in real property
• Requires a will to avoid probate

Answer 12

Tenants in Common

Question 13

Transfers at death:
All JTROS assets go into estate of first to die unless:
- Married couples are only ___, or
- Proof provided of contributions by the ___ ___ (then pro rata allocation)

Answer 13

• tenants

- surviving tenants

Question 14

Transfers at death:
All JTROS assets go into estate of first to die unless:
- Entire community property has ___ ___ ___ at death of first to die

Answer 14

step up basis

Question 15

Transfers at death:
All JTROS assets go into estate of first to die unless:
- Real property is probated where ___ while personal property is probated in ___ of ___.

Answer 15

located, state of domicile

Question 16

Transfers at death:
All JTROS assets go into estate of first to die unless:
- Titling of real property limited to those ownership types recognized by the state where property ___.

Answer 16

located