Legal Definitions - intus habet

intus habet

A historical legal Latin phrase meaning "has in his own hands." It refers to the presumption that if one party holds funds or assets belonging to another, those funds are considered sufficient to satisfy any claims or debts the holder might have against the owner of the funds. Essentially, it implies that the holder can use the funds already in their possession to settle an outstanding obligation from the owner, rather than needing to pursue a separate claim.

• Example 1: A financial advisor manages a client's investment portfolio. If the client owes the advisor for agreed-upon management fees, the advisor is presumed to have the client's funds "in his own hands" within the portfolio to deduct those fees, rather than needing to bill the client separately and wait for payment.

  Explanation: This illustrates intus habet because the advisor controls the client's assets and can directly use them to cover the client's obligation for services rendered, based on the presumption of having the funds readily available.

• Example 2: An executor is administering a deceased person's estate, which includes a significant inheritance for a particular beneficiary. If that same beneficiary had previously borrowed money from the deceased and still owes the estate, the executor is presumed to have the beneficiary's inheritance funds "in his own hands" to offset the outstanding debt before distributing the remainder.

  Explanation: Here, the executor possesses the beneficiary's future inheritance, allowing them to apply the principle of intus habet by using those funds to satisfy the beneficiary's debt to the estate directly.

• Example 3: A property manager collects rent payments on behalf of a landlord. If the landlord owes the property manager for agreed-upon maintenance expenses or management fees, the property manager is presumed to have the landlord's rental income "in his own hands" to cover these costs, deducting them before remitting the balance to the landlord.

  Explanation: This scenario demonstrates intus habet as the property manager has direct control over the landlord's incoming funds (rent), enabling them to satisfy the landlord's financial obligations to them from those very funds.