In: Accounting
Ownership and Other Interests in Real Property Arthur and Diana acquired a parcel of real property (“Greenacre”).
Arthur and Diana are not related to one another. Some years later, Arthur makes a will (i.e., a legal document that directs who receives a person’s possessions upon death). Arthur’s will says, "Upon my death, all my property shall pass to my brother, Curtis.”
(a) Assume Arthur and Diana own Greenacre as “tenants-in-common.” Subsequently, Arthur dies. Each Diana and Curtis claim to own Arthur’s interest in Greenacre. Who owns Greenacre? Why? (b)
Assume Arthur and Diana own Greenacre as “joint tenants WROS.” Subsequently, Arthur dies. Each Diana and Curtis claim to own Arthur’s interest in Greenacre. Who owns Greenacre?Why?
(a).
After Death of Arthur, Arthur's Interest in Greenacre will be Owned by CURTIS.
Reason-
"Tenancy in Common" refers to two or more persons with separate interests in the same property with Following Principles regarding Transfer of Ownership in case of Death of Co-owner.
Principle - Upon Death of one of Co-owners, their Interest (Share of Ownership) will be distributed to their beneficiaries based on their will.
In Given Situation, Arthur and Diana own Greenacre as "Tenants in Common" and As Per the Will of Arthur, His Share of Ownership in Greenacre will be transferred to His Brother (CURTIS) upon his Death.
By Applying Principle of transfer of Ownership Upon Death of Co-owner as Discussed above, Arthur's Share of Ownership in Greenacre will be distributed to Curtis his Brother as Per his will.
So, Based on above arguments, Curtis owns Arthur's Share of Ownership after Arthur's Death.
(b).
After Death of Arthur, Arthur's Interest in Greenacre will be Owned by DIANA.
Reason-
"Joint Tenancy with Right of Survivorship" is more Restrictive arrangement that includes right of Survivorship in case where two or more persons with separate interests in the same property with Following Principle regarding Transfer of Ownership in case of Death of Co-owner.
Principle - Upon death of one of Co-owners, their interest will be automatically transferred to the other Joint tenants in equal shares regardless of what mentioned of Deceased Person's Will.
In Given Situation, Arthur and Diana own Greenacre as "Joint Tenancy with Right of Survivorship"
By applying Principle of "Joint Tenancy with Right of Survivorship" regarding Transfer of Ownership upon death of Co-owner, Arthur's Share of Ownership in Greenacre will be transferred to Diana upon his Death regardless of what mentioned in Arthur's Will.
So, Based on above arguments, Diana Owns Arthur's Share of Ownership after Arthur's Death.