If a family member leaves part of the property, what can the heir do? Recently, a reader asked that it was because an elder in the family passed away after a hundred years and left a property to the three brothers of the reader. The property rights were equally divided among the three brothers, that is, each of them also held part of the property rights. However, the reader has immigrated; the other two brothers live in the property, and they cannot collect rent from their brothers, which makes the reader very troubled. There is actually a lot of knowledge involved in handling estate ownership. If handled properly, it can reduce many disputes in the future.
Data picture (picture source: Jingyi Editorial Department)
Fractional ownership is generally divided into two situations: "tenancy in common" and "joint tenancy". Shared ownership means that the property rights owned by each shareholder are independent and do not interfere with each other. Each holder can sell the property or change its name at any time without the consent of other holders. Regarding the future disposal of the property, It is also up to the holder to decide.
Take the reader's situation as an example. Assuming that the reader owns a "shared ownership", he can cash out part of the incomplete ownership at any time and sell it to outsiders or other owners of the unit.
However, if the reader indicates that the other two brothers have no intention of purchasing the property rights held by them, the reader can only sell the property rights on the open market. However, generally speaking, because the title is incomplete, it is difficult for the first-time buyer to obtain a mortgage, and the reader only holds one-third of the title, so the selling price will be significantly discounted and cannot be sold at the market price.
It cannot be sold independently with a long life deed.
Another situation is the fragmented ownership situation of "joint tenancy". The so-called "joint tenancy" means that each owner of the property can claim to own all the ownership of the property. Since the relevant ownership rights are overlapping, all owners The right holder cannot resell or rename the property privately, which is called a "longevity deed".
Taking the reader's situation as an example, if the three brothers inherit the inheritance in the form of "joint tenancy", the reader cannot sell the property rights to cash out. Because the long-life deed works by "fighting for longevity", the title held by the deceased party will automatically be inherited by the other title holders. The last person can automatically obtain the full and complete title, and then he can freely handle the property. , and even if the owner of the property rights makes a will to distribute the property rights in his hands, it will be invalid.
So if readers hold property rights in this way, at this stage they are basically "getting something without using it" and there is nothing they can do. There is indeed a lot of knowledge in how to deal with estate title, which involves the family situation of the title holder and what kind of future he envisions in his mind.
Joint tenancy provides flexibility in estate settlement
Assuming that the property owner has no intention of selling the property and distributing the funds to his heirs, but only wants to keep the property for residential purposes to ensure that his descendants will have a house to live in, then it is more appropriate to use a longevity deed. Because the owners of "joint tenancy" cannot sell the property unilaterally, it is up to the owners to decide how to use the property. This type of title is suitable for situations where the heir lacks financial management skills or is unable to properly utilize the property in his possession.
On the other hand, if you want your heirs to be able to handle the inheritance freely, for example, if they are all good at financial management, or if they each own all the property, the owner of the property may choose to use the method of "shared ownership". This is because heritage properties can be handled more flexibly in the future, making it easier for future generations to manage assets.
Disclaimer:
The above is purely personal research sharing and does not represent the position of any third-party organization. This commentary is not and should not be regarded as an invitation, solicitation, invitation or recommendation to buy or sell any investment products or investment decisions, nor should it be construed as professional advice. Persons reading this document or before making any investment decisions should fully understand the risks and relevant legal, tax and accounting perspectives and consequences, and decide whether the investment is suitable for their personal financial situation and investment objectives based on their personal circumstances. and whether you can withstand the relevant risks, you should seek appropriate professional advice when necessary. I or my associates do not hold any financial interest in the listed corporations reviewed in this commentary.