Types of Freehold Estates

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).

An Overview of the Title Examination Process

An accomplished Illinois attorney and business owner, Heidi Scott has over two decades of legal experience. Heidi Scott is the owner of Illinois-based Schuyler Brown Land Title, a full-service title company that delivers title examination service, among others.

Title examination is a key process of a real estate transaction whereby a search is conducted to determine the real identity of the owners of a property as well as other information associated with a property. This process seeks to determine whether any encumbrances attached to the property might hinder or affect the transaction. Encumbrances include any restrictions placed on the property in the course of ownership and unpaid taxes.

Additional information sought during title examination includes plats (map of an area of land) and restrictive covenants that prohibit certain actions. Title examinations also disclose the history of property ownership, all the deeds issued in the past, and verifying the chain of the title. The examination also checks for any will and trust documents and how they can affect the status of the current transaction.

For more information, contact Schuyler Brown Land Title at 217-773-3112 or visit 118 N. Capitol Ave, Suite B in Mt. Sterling.

A Brief Overview of Probate in Illinois

Heidi Scott has owned and driven operations at Schuyler Brown Land Title in Mt. Sterling, Illinois, since 2008. Also a Certified Public Accountant and attorney, Heidi Scott has assisted clients throughout Illinois in matters ranging from tax law to estate planning.

In the event that an individual passes away without a proper estate plan in place, their estate will enter into a legal process known as probate. In some cases, even if a will has been left behind, probate processes may be utilized as a means of determining the validity of the will and addressing complex, high-value assets.

In Illinois, the deceased individual’s executor is responsible for leading probate processes. During probate, the executor must not only prove the validity of the will but provide an inventory of all assets, have the assets appraised, clear any debts and otherwise outstanding payments, and finally, distribute remaining assets as the will dictates.

In the case of a valid will, probate processes are typically straightforward. However, individuals who die without a will leave their loved ones with a variety of challenges to deal with. Most notably, assets will be distributed according to Illinois state law rather than the deceased person’s desires, regardless of how well known these desires may have been to friends and family.

As mentioned, probate processes are not always a requirement. If all assets are jointly owned and do not exceed a combined value of $100,000, for example, probate can be bypassed. Furthermore, certain assets may be exempt from probate, such as assets held in a living revocable trust or property governed by an Illinois transfer-on-death deed.

Regardless of an individual’s specific situation, it is always advisable to contact a knowledgeable professional and formulate an estate plan to ensure that assets are fairly distributed among family and friends.