An estate includes overall property of an individual in which the property is distributed according to the individual’s will. It involves in managing the personal estate and financial planning in a legal way.
See Also: 9 Types of Investments
Types of Estates
1. Freehold Estate
A freehold estate in which there is no time duration for the interest in land and also characterized by the ownership of land. It consists of three types of freehold estates namely fee simple, fee tail and life estate.
The estate is of a fixed period in which the nature and the extent of the property rights depends upon the type of the freehold estate.
2. Leasehold Estate
In leasehold agreement the tenant is allowed to use the owners property for certain period by giving a temporary rights of ownership. A feature of this type of estate is a specified beginning and ending time with exclusive right for the asset providing with initial period of tenancy.
There are four types of leaseholds with specific characteristics explaining the relationship between landlord and tenant namely estate for years, estate from period to period, estate at will and estate at sufferance.
3. Concurrent Estate
This type of estate is owned by many individuals and co-owners, join tenants are responsible for it and according to the agreement if any of the owners passed away the property is shared in equal as stated. Three types of concurrent estates are joint tenancy, tenancy by entirety and tenancy in common.
Joint tenancy is in which the at the same period of time property is shared by two or more persons. Tenancy by entirety involves in sharing of the property agreement between husband and wife. Tenancy in common is the one in which a legal document is created by a lawyer for operation of law or holding the assets by two or more individuals.
4. Equitable Estate
This type of estate involves taking the assets of the land which does not have legal rights, in which the court can take notice. The property is neither owned or possessed and exists only in countries influenced by the “common law” tradition such as the United States, Canada, England, Australia, and New Zealand.
5. Non Freehold Estate
The non-free hold estate is less than the freehold type in which the real property can be taken and it is not inheritable. Even though there is no rights for the ownership on the real property according to the agreements he can use the assets.
As tenants are involved in this type estates it is also known as a tenancy. Tenancy for years, tenancy from period to period, tenancies at will and tenancy at sufferance are the four types involved.