Personal Property Ownership

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define types of property. 
    • Real
    • Personal
    • Intellectual 
  • Define fee simple. 
  • Define types of personal property.
    • Tangible
    • Intangible 
  • Define ownership types.       
    • Legal
    • Beneficial 
  • Define categories of property ownership.
    • Sole ownership
    • Joint ownership
    • Beneficial ownership 
  • Identify rights that accompany ownership of property, such as:
    • The right to possession, management and control of the property
    • The right to income and capital from the property
    • The right to dispose of property during the owner’s lifetime
    • The right to dispose of property at the time of the owner’s death
    • The right to protection of property under law 
  • Explain how each right is impacted by the form of ownership. 
  • Define joint tenancy. 
  • Define tenants in common.  
  • Explain the unities that are required for a joint tenancy to exist.
    • Unity of interest
    • Unity of title
    • Unity of possession
    • Unity of time 
  • Explain benefits and risks of holding property with joint ownership.1
  • Explain the potential impact of transferring property from sole ownership into joint ownership. 
    • Taxation
    • Control and access to asset
    • Estate planning 
    • Potential creditor protection impact 
    • Potential family law impact 
  • Define the presumption of resulting trust.  
  • Explain the importance of a person’s intention at the time of transfer when transferring property into joint ownership. 
  • Explain evidence that the court will consider in establishing the intention of a person when transferring property into joint ownership.2 
  • Identify the potential ownership of property upon death. 
    • For property owned as joint tenants between a parent and a minor child3
    • For property owned as joint tenants other than between a parent and a minor child4
    • For property owned as tenants in common

REFERENCES

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define types of property. 
    • Real
    • Personal
    • Intellectual 
  • Define fee simple. 
  • Define types of personal property.
    • Tangible
    • Intangible 
  • Define ownership types.       
    • Legal
    • Beneficial 
  • Define categories of property ownership.
    • Sole ownership
    • Joint ownership
    • Beneficial ownership 
  • Identify rights that accompany ownership of property, such as:
    • The right to possession, management and control of the property
    • The right to income and capital from the property
    • The right to dispose of property during the owner’s lifetime
    • The right to dispose of property at the time of the owner’s death
    • The right to protection of property under law 
  • Explain how each right is impacted by the form of ownership. 
  • Define joint tenancy. 
  • Define tenants in common.  
  • Explain the unities that are required for a joint tenancy to exist.
    • Unity of interest
    • Unity of title
    • Unity of possession
    • Unity of time 
  • Explain benefits and risks of holding property with joint ownership.1
  • Explain the potential impact of transferring property from sole ownership into joint ownership. 
    • Taxation
    • Control and access to asset
    • Estate planning 
    • Potential creditor protection impact 
    • Potential family law impact 
  • Define the presumption of resulting trust.  
  • Explain the importance of a person’s intention at the time of transfer when transferring property into joint ownership. 
  • Explain evidence that the court will consider in establishing the intention of a person when transferring property into joint ownership.2 
  • Identify the potential ownership of property upon death. 
    • For property owned as joint tenants between a parent and a minor child3
    • For property owned as joint tenants other than between a parent and a minor child4
    • For property owned as tenants in common
Additional Knowledge Expected of CFP Professionals
  • Define types of intellectual property.
    • Patents
    • Trademarks
    • Copyrights
  • Explain the impact on property ownership when an individual transfers their undivided interest in property held in joint tenancy.
    • On the new owner
    • On the remaining owners, if applicable
  • Explain the impact on property ownership when an individual transfers a share of property held as tenants in common.
    • On the new owner
    • On the remaining owners, if applicable
  • Explain the impact on property ownership upon death.
    • For property owned as joint tenants between a parent and a minor child3
    • For property owned as joint tenants other than between a parent and a minor child4
    • For property owned as tenants in common

REFERENCES