Nowadays, it is becoming more and more common in the world of finance and planning to speak of bare ownership. We can define it as a new strategy that perfectly combines economic flexibility and long-term planning.
In this interesting article, we will discuss what bare ownership really is, its exceptional benefits and how it can be used effectively in financial and estate planning for both parties.
But, what is meant by Nuda Propiedad?
The bare ownership consists of a legal agreement that divides the ownership rights of a property into two parts: the legal ownership and the right of usufruct.
In this agreement, the owner retains legal ownership of the property, but does not have the right to use it or enjoy its benefits in a comprehensive manner, since the usufructuary has the privilege of use and enjoyment without holding legal title.
However, what are the real benefits of this modality?
In the first place, the bare ownership offers an enviable economic flexibility by allowing the bare owner to acquire the property at a lower price than if he were to buy and sell the same real estate, while the usufructuary retains the right of use and enjoyment. This feature becomes especially valuable in situations where liquidity is needed without compromise, and usually the price of the property is significantly lower, thus making it an unparalleled investment opportunity.
The bare ownership is a valuable tool in estate planning. It allows us to transfer assets to future generations while retaining control over them. An example of this is when parents transfer ownership of a home to their children, but retain the right to reside in it as usufructuaries.
This ensures that the asset remains in the family. In addition, bare ownership may offer tax benefits in terms of estate planning, depending on the jurisdiction and specific circumstances. For example, people over the age of 65 can take advantage of tax benefits when selling a home and be exempt from tax on this sale. In an ever-changing world, where financial stability and long-term planning are crucial, bare ownership presents itself as a perfect tool that combines flexibility and planning. By understanding and taking advantage of its benefits, you can maximize the value of your assets.
At AYRE Estates, we are here to help you discover how bare ownership offers a unique opportunity to invest in your wealth while maintaining control of your present and financial future. AYRE Estates. Turning dreams into homes.