What is Personal Property?
Personal property, also known as personalty, encompasses all forms of property that are not permanently attached to land or buildings. It includes tangible objects such as vehicles, furniture, electronics, and clothing, as well as intangible assets like stocks, bonds, and patents. Personal property is distinct from real property, which includes land and anything permanently attached to it, such as buildings or structures.
Examples of Personal Property
- Furniture: Items like sofas, tables, chairs, and cabinets are considered personal property.
- Vehicles: Cars, motorcycles, trucks, and bicycles fall under the category of personal property.
- Electronics: Devices such as televisions, computers, smartphones, and tablets.
- Clothing: Apparel items ranging from shoes and hats to dresses and suits.
- Jewelry: Personal adornments made from precious metals and stones.
- Stocks and Bonds: Financial assets representing ownership in a company or debt investment in a business.
- Patents: Intellectual property rights granted for new inventions or innovations.
Frequently Asked Questions (FAQs)
What is the difference between personal property and real property?
Personal property refers to movable items that are not permanently attached to land or buildings. Real property, on the other hand, comprises land and any structures that are permanently affixed to it, such as houses or commercial buildings.
How is personal property taxed?
Personal property may be subject to different tax rules depending on the jurisdiction. Generally, personal property taxes are levied on certain types of personal assets, particularly vehicles. Other forms of personal property may not be taxed, or they may be subject to different forms of taxation, such as sales tax or capital gains tax.
Can personal property be insured?
Yes, personal property can be insured. Homeowners or renters insurance policies often cover personal property to protect against losses due to theft, fire, or other hazards. Specific endorsements can also be added for valuable items like jewelry or fine art.
What happens to personal property during a divorce?
In divorce proceedings, personal property is typically divided between the parties. This division can be negotiated by the individuals involved or determined by a court order based on various factors, including the length of the marriage, the contributions of each party, and the best interests of any children involved.
Is personal property subject to probate?
Yes, personal property is subject to probate, which is the legal process of administering a deceased person’s estate. During probate, personal property is accounted for, appraised, and distributed according to the will or state laws if there is no will.
Related Terms
- Chattel: Another term for personal property that includes movable items.
- Intangible Property: Assets that do not have a physical presence, such as intellectual property rights or financial securities.
- Tangible Property: Physical items that can be touched and moved, such as furniture, vehicles, and jewelry.
- Fixture: An item initially considered personal property that becomes real property when it is attached to land or a building.
Online Resources
- IRS - What is Personal Property?
- NOLO - Personal Property vs Real Property
- Rocket Lawyer - Definition of Personal Property
References
- “Black’s Law Dictionary” by Bryan A. Garner
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “Principles of Property Law” by Herbert Hovenkamp and Sheldon F. Kurtz
Suggested Books for Further Studies
- “Real Estate Law” by Marianne M. Jennings
- “Personal Property Law” by Sarah Nield
- “The Law of Personal Property” by Michael Bridge et al.
