Property Rights and Estates (Finance Real Estate) Essay

Property Rights and Estates (Finance Real Estate) - Essay Example On the other hand, anything that is not real property is termed personal property that includes everything else. It is made up of two general classes: tangible and intangible. Examples of tangible personal property are cars, household items and furniture, clothing, jewelry, even pets and season baseball tickets. Intangible properties or assets cannot be seen but is represented by paper, such as securities, bank accounts, wages, insurance policies, trade secrets, copyrights, patents, trademarks, and goodwill. Personal property may also be called in modern civil law systems as personal effects, personalty, and chattel. It is also called temporary, moveable property or movables that indicate any property that can be moved from one location to another. Generally, an estate describes the degree, quantity, nature, and extent of the interest that a person has in real property. It is an ownership interest in real estate and denotes the quantity of rights in property. The process by which an individual or family arranges the transfer of assets in anticipation of death is called estate planning. It aims to preserve the amount of wealth possible for the intended beneficiaries and flexibility for the individual prior to death. There are further divisions within the real property classification. Traditionally, there are two types of estates: freehold and non-freehold. However, concurrent estate is also considered in the real property category. Others are future interests, specialty estates, and incorporeal interests). (Figure 1 shows the outline of the real property classification) FREEHOLD ESTATES are those in which an individual has ownership that continues for an indefinite period of time or until the occurrence of some event. An individual who is in possession of a freehold estate has seisin, which means the right to immediate possession of the