Overview
This lesson explains the three main methods by which ownership of property is transferred: inheritance, involuntary alienation, and voluntary alienation, with a focus on inheritance and related terminology.
Methods of Transfer of Ownership
- Ownership can be transferred by inheritance, involuntary alienation (forced transfer), and voluntary alienation (willing transfer).
- The Louisiana Purchase is cited as a major historical example of ownership transfer.
Inheritance
- Inheritance occurs when property is passed to relatives, friends, or others upon one's death.
- The court proceeding for transferring a deceased person's property is called probate.
- Dying with a will is called dying testate; without a will is intestate.
- An executor is a person named in the will to carry out its provisions.
- An administrator is appointed by the court if there is no executor or no will.
- Both executor and administrator may be called a personal representative.
Types of Wills
- A standard will is typically prepared by an attorney.
- A holographic will is entirely handwritten by the testator.
- A nuncupative will is an oral (spoken) will, usually made as a deathbed wish.
Types of Inheritances
- A devise is a gift of real property through a will; the giver is the devisor, the recipient is the devisee.
- Title by descent transfers real property to heirs when there is no will, according to state law.
- A bequest or legacy refers to a gift of personal property through a will.
Involuntary Alienation (Forced Transfer)
- Eminent domain allows the government to take private property for public use with compensation (process: condemnation).
- Adverse possession is when someone gains ownership by occupying land for a long period.
- Foreclosure, not discussed in detail here, is another form of involuntary transfer.
Voluntary Alienation (Willing Transfer)
- Voluntary alienation is an unforced transfer of ownership, usually through sale.
- The deed is the legal document that transfers ownership in most types of transactions.
Key Terms & Definitions
- Probate — Court process to distribute a deceased person's property.
- Testate — Dying with a valid will.
- Intestate — Dying without a will.
- Executor — Person named in a will to carry out its provisions.
- Administrator — Person appointed by the court to manage estate if no executor is named.
- Personal Representative — General term for executor or administrator.
- Standard Will — Attorney-prepared written will.
- Holographic Will — Handwritten will.
- Nuncupative Will — Oral will, often on a deathbed.
- Devise — Gift of real property through a will.
- Devisor — Person giving real property in a will.
- Devisee — Person receiving property in a will.
- Title by Descent — Inheritance of real property by law when there's no will.
- Bequest/Legacy — Gift of personal property through a will.
- Eminent Domain — Government's right to take private property for public use.
- Adverse Possession — Acquiring title by openly occupying land for a statutory period.
- Deed — Legal document that transfers ownership of property.
Action Items / Next Steps
- Review the definitions of key terms related to property transfer.
- Prepare for a detailed discussion of foreclosure in a future lesson.