A longtime resident of Illinois, Heidi Scott has spent the last two decades as a tax attorney and certified public accountant specializing in real estate, tax law, and estate planning. She presently owns and manages Schuyler Brown Land Title and Heidi Scott Law Offices in Mt. Sterling, IL. She conducts real estate title examinations and prepares real estate deeds.
One of the two classifications of real estate, freehold estates, refers to real properties owned for an indefinite time. It is crucial to understand the classification a real property falls in its document before buying the estate as these could avoid future disputes. The following are three types of freehold estates:
1. Fee simple absolute
Sometimes called fee simple, a fee simple absolute gives its owner complete ownership without restriction. The individual can own these properties for life, and when they become deceased, the property will be transferred to their beneficiaries through will or law. The only way a fee simple absolute owner can lose the property is if they fail to pay required property taxes or satisfy other legal obligations about the estate.
2. Fee simple defeasible
Technically, a fee simple-defeasible is a form of fee simple absolute with some key modifications. The modification, in this case, is an extra restriction. This restriction can take any form. Often, it pertains to what they can use the property for. If they violate the rule, they may lose the property.
3. Life estate
Life estate owners have an ownership interest in the property as long as they are alive. Most life estate owners are the original owners of the property. While they are alive, they share responsibilities with another individual who will fully own the property after the original owner dies. These responsibilities include property taxes and insurance premiums. The original property owner, in this case, is the life tenant. Although this is not mandatory, the other party is the inheritor and could be related to the life tenant by blood (such as an heir).
Heidi Scott (Illinois) 