Responsible estate planning is essential in assuring that your property is appropriately organized and distributed according to your wishes. When describing property in legal terms, there are two types: real property and personal property. Personal property can also be divided into two categories: tangible and intangible, but we will discuss those in a later blog.
What is Real Property?
Real property includes land, improvements on the land, surface of the land, and the areas above and below the land. Generally, real property is immovable and permanently fixed to land. Buildings, houses, landscaping, trees, and soil are all examples of real property.
Real property also includes ownership or rights for easements or right-of-ways on another person’s land. An example of an easement is a driveway shared between you and your neighbor that allows you to travel across a portion of their property to get to your own house.
Finally, real property usually has a formal title that represents a person’s ownership of the property; for example, the deed to your house.
What is Personal Property?
Personal property describes all property that is not real property. It is generally moveable and includes things like household goods, cars, and furniture. Unlike real property, personal property does not always have a formal title. While cars, boats, and motor homes do have titles, other things like household goods do not. Proof of ownership for items without formal titles is usually established by a receipt or bill of sale.
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