Type's of Property

Question 1

What the three types of property for individuals?

Answer 1

Tangible personal property (personal items)

Intangible personal property (financial assets and interests)

Real property (real estate)

Question 2

What distinguishes real property from tangible personal property?

Answer 2

Real estate is categorized differently because it always attached to land and considered part of, and an improvement to, the land

Question 3

Under which three personal property categories do the following assets fall?

Stocks
Bonds
Bank accounts
IRAs
401ks
Accounts receivable 
Life insurance

Answer 3

All are intangible personal property because they represent beneficial interests both not things

Question 4

What is the difference between a “legal interest” in property as compared to a “beneficial” interest?

Answer 4

A beneficial interest entails rights to use property. A legal interest entails rights to manage and transfer property (subject to terms of a trust or other legal document), but not personally benefit from or use property.

A trustee has a legal interest in the property held by a trust set up for the benefit of another, but does not have a beneficial interest.