August 24, 2011
Gifts of Real Property & Taxes
A lucid explanation of the tax consequences of making inter vivos gifts of real property.
May 17, 2011
Waldeck on the Inheritance of Heirlooms
Sarah Waldeck (Seton Hall) has posted Rethinking the Intersection of Inheritance and the Law of Tenancy in Common (Notre Dame Law Review) on SSRN. Here's the abstract:
The Article is about "identity property," which it defines as property that is strongly linked to one’s sense of self and family and is valued by its holder primarily for what it represents. Identity property is often jointly inherited by siblings or other relatives, who take as tenants in common. Standard doctrine relies on familial bonds and the unilateral right of partition to mitigate the problem of bilateral monopoly and to foster cooperation in the management of the tenants’ common resource. The Article argues that, in the context of identity property, this standard account is wrong. Rather, because the law favors partition by sale, the exit of one tenant often means that the remaining co-tenants will be forced to sell the identity property. Because the remaining tenants perceive the property as non-fungible, the threat of exit is powerful enough to exacerbate the bilateral monopoly and decrease the likelihood of cooperation. The Article relies on the example of the family cottage to elucidate the meaning of "identity property" and examines the formal agreements that relatives who jointly own cottages make when they decide to opt out of the tenancy in common default rules. These formal agreements reveal a willingness to sacrifice the right of exit in order to increase the odds that co-tenants will continue to own the identity property. The Article argues that the law should heed the message of these formal agreements and adopt a more flexible approach to the inheritance of identity property, including the possibilities of temporal partition and facilitated agreement.
April 28, 2011
Property Issues and the Royal Wedding
A childhood full of playing Dungeons & Dragons and trading Magic: The Gathering cards has left me far too interested in the Royal Wedding (it is, sadly, the closest I'll ever get to wearing chain mail or wielding a broad axe). Luckily, there's at least a little overlap between my scholarly interests and the pageantry of Will and Kate's nuptuials. As far as I can tell, the wedding raises at least three property issues:
1. The shortage of hotels has inspired many Londoners to rent out their homes and become temporary landlords. One expert estimates that London homeowners stand to take in an estimated $170 million in rents during this week. Prices range from $50 a night for a single room in a private home to more than $6,000 a week to rent an entire house in central London.
2. Royal watchers are gossiping about whether Kate and Will have signed a prenuptial agreement. Family Law Solicitor Louise Liu speculates that even though William is worth $45 million, it's unlikely he's been encouraged to get a prenup with Kate. According to Liu, while prenups are routine in the U.S., they are persuasive but not legally binding in England.
3. What titles will the Queen bestow on William and Kate? All titles are gifts from the monarch, so it is the Queen's perogative to choose which one to grant to her grandson and his new wife. As the Telegraph explains, "Tradition dictates that royal men receive a title on their wedding - and often more than one." Leading contenders include the Duke of Cambridge, the Duke of Sussex, and the Duke of Clarence. A couple of Duchies produce serious income. Prince Charles' Duchy of Cornwall estate, which stretches over 135,000 acres in the south-west of England, has an estimated value of $1 billion (647 million pounds) and produces $25 million a year in profits. One final note on titles; according to tradition Kate would not become HRH Princess Catherine of Wales because she is not a Princess in her own right. Instead, she becomes HRH Princess William of Wales.
If you're looking for me tomorrow, I'll be the guy having tea and crumpets, glued to the TV.