One of the principal beliefs of a capitalistic socio-economic system is property ownership. No wonder laws that govern against stealing personal property are strict. By definition, a property can be owned by a single person (or collectively) as long as there is a legal determination that relates to the person with the duties and rights over the property. Ownership is self-propagating, such that the owner is entitled to enjoy the economic benefits of owning that property.
There are several ways you can acquire property, and all of them need the help of a property lawyer in Townsville. For instance, one can purchase property, trade with it, win it as a prize, or receive it as a gift. One may also inherit, build their wealth from scratch, or accept it as damages. Whatever the case, the property will fall under the following ownership categories:
Sole ownership
Here, one person has rights to the entire interest acquired from an asset. The ownership is transferred between persons when they exchange documents or as a result of succession. Taxes for this property could lower its value, especially if there has been no further development there. One of the benefits of this type of ownership is that a beneficiary will not have to worry about capital gain. They receive the property at its market value at the time it is passed.
Joint tenancy
In this case, two or more people share an equal and undivided interest in the property. They do not need to be spouses and anyone can share tenancy. However, only spouses enjoy tax benefits for sharing this property type. That is, if one spouse passes on, the other acquires the property without tax and probate consequences. This interest is not passed through traditional documents like a will, however. Ownership still goes to the remaining owner.
Joint tenancy with rights of survivorship
Here, when one tenant dies, their interest goes to remaining owners, but they have an option to transfer ownership to another person when they are alive. This type has various tax scenarios. For example, surviving members can receive step-ups in the value of the property. If they sell it, they get capital gains.
Common tenancy
Here, tenants own interest together, but the investment does not have to be held in equal amounts. A tenant can pass their percentage to others using traditional documents. Besides, interest is not given to others by law.
Additionally, the interest of the deceased will pass through probate. After probate, the benefit from the property of the dead goes to their heir. They get step-up value.
Community property
Only a few states have community property ownership laws. Where they exist, assets acquired in marriage (for example) are owned by the community, so each spouse shares it equally. A spouse may decide to leave their share to the other upon their death, but they are not restricted to this. Moving to a different state will not nullify the ownership status of the property, and neither does a separation.
Often, people understand the ramifications of the property they own when it is too late to do anything about it. Knowing the forms of property beforehand can help you to avoid complications. As you build your assets, consult with professionals to create a personalized and detailed plan that will protect your property.
