Fractional ownership means that you and a group of friends and/or relatives get together to buy something really expensive the rest of you could not buy on your own. Everyone gets to use this item, and when you die, you can choose to leave your share of the item to an heir, or it is bought out by one of the remaining fractional owners. When the item all of you own is a very expensive car, a plane, or a boat, an heir in this situation is going to have to make some heavy decisions. If you are currently in this situation (where your parent has left you with a fractional ownership in, say, a fishing boat) here is what you can do next.
Examine Your Fractional Ownership Contract
The first thing you should do is examine the fractional ownership contract. You need to see if it is a fractional ownership vs charters contract. How much of the fishing boat did your parent leave you? Is it an equal share with every other owner, or do you own a much larger share of it? This is important because it will dictate what you do with the boat and your share of it next.
Examine the Stipulations in Your Parent's Will
Next, look at the wording in your parent's will. Does it say that you can sell your share of the fractional ownership in the fishing boat to someone else? Does it say that you can give it to another fractional owner of the boat? It may even forbid you to sell or give away your share, so you should read what it says before you proceed.
If Your Parent Did Not Forbid Selling or Giving Away the Fractional Ownership You Inherited, Make a Decision
Having a fractional ownership in a fishing boat can be very lucrative. It means you have a vested interest in what the boat is used for, what it does, and how much money is made with the use of the boat for commercial fishing or chartered fishing trips. Based on the percentage of ownership you have, that is your take-home cut of whatever profit the boat makes. You do not have to be a visible or active partner of the fishing business, either. You can just agree with the other fractional owners to collect your share at the end of each week or month.
On the other hand, you may not want to be part of this business at all. If that is the case, and your parent did not explicitly forbid you selling or giving away your share of the boat, you can choose to sell or give away your share to one of the other owners. This may also be quite lucrative if the other owners want your share and are willing to outbid each other to get it.Share
30 July 2019
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