Legal Definitions - lucrative title

A lucrative title refers to the acquisition of ownership or a right where the recipient does not provide equivalent value or consideration in return. Essentially, the recipient gains something of value without having to pay for it or exchange something of comparable worth. This is often contrasted with an onerous title, where the acquisition involves a fair exchange of value, such as buying property at market price.

Here are some examples illustrating a lucrative title:

• Example 1: Gift of Real Estate
  A wealthy aunt decides to gift her niece a fully paid-for condominium in a desirable city. The aunt executes the necessary legal documents to transfer ownership to her niece, who accepts the gift without making any payment or providing any other form of consideration. The niece now holds a lucrative title to the condominium.

  Explanation: The niece acquired full ownership of a valuable asset without providing any equivalent payment or service in return. The transfer was a pure gift, making her title to the property a lucrative one.

• Example 2: Inheritance Through a Will
  Upon the passing of a parent, their adult child inherits a significant portfolio of stocks and bonds as stipulated in the parent's last will and testament. The child becomes the legal owner of these financial assets through the probate process, without having to purchase them or provide any consideration to the estate.

  Explanation: The child received ownership of the stock portfolio solely by virtue of inheritance, not through a purchase or exchange of value. This acquisition of ownership without providing equivalent consideration makes it a lucrative title.

• Example 3: Transfer for Nominal Consideration
  A small business owner, nearing retirement, decides to transfer ownership of their successful local bakery to their long-time, loyal manager for a symbolic payment of one dollar. The market value of the bakery, including its equipment, recipes, and goodwill, is significantly higher than this nominal amount.

  Explanation: Although a payment was made, the one dollar is clearly not equivalent to the true market value of the bakery. The manager essentially received the business as a gift, making their acquisition of ownership a lucrative title because they did not provide equivalent value.