Estate

A term that describes a person’s ownership of a property

Estates show the kind of ownership arrangement that you have. In general, each type of estate specifies your claim on a property, how long the claim will last and the rights that go along with the claim. The two major types of estates are (1) freehold estates, which refer to property owners and (2) leasehold estates, which are for tenants.

Example: What are the types of estates?

		Freehold estates
		Fee simple (absolute)	An owner has unrestricted rights to a property. This is the most common kind of ownership.
		Fee simple qualified	An owner holds title to a property under certain conditions. For example: Susan can hold a property's title unless she gets married before age 35.
		Life estate	An owner can hold onto a property until death, must maintain and pay taxes on the property, but cannot put it in a will.
		Estate in remainder	The person who receives a property after the owner of a life estate dies.
		Estate in reversion	When a property returns to the person (or heirs) who originally handed over a life estate property.

		Leasehold estates (also called less-than-freehold or lease)
		Estate for years	A tenant that has a lease for a set period of time. The rent must remain the same until the lease expires.
		Estate from period to period	A tenant with a lease that lasts month to month. The lease is automatically renewed at the end of each month. The tenant has to give 30 days notice.
		Estate at will	When there's no lease between the tenant and the landlord.
		Estate at sufferance	When a tenant lives on a property without the landlord's permission or paying rent.