Legal Definitions - words of purchase

In legal terms, words of purchase refer to the specific language used in a legal document, such as a deed, will, or trust, that clearly identifies the individual or entity designated to receive a grant of property or assets.

These words are crucial because they precisely name the recipient, ensuring there is no ambiguity about who is intended to acquire ownership or benefit from the transfer. The term "purchase" in this context does not necessarily imply buying with money, but rather acquiring property through any means other than direct inheritance from an ancestor (e.g., by gift, will, or actual sale).

Here are some examples illustrating how "words of purchase" are used:

• Example 1: A Last Will and Testament

  Imagine a person writing their will who wishes to leave their valuable antique car collection to their niece. The will might state: "I give and bequeath my entire collection of vintage automobiles to my beloved niece, Clara Thompson."

  In this scenario, "my beloved niece, Clara Thompson" constitutes the words of purchase. This phrasing explicitly names Clara as the individual who is to receive the car collection, leaving no doubt about the testator's (the person making the will) intention regarding the recipient of this specific asset.

• Example 2: A Real Estate Deed

  Consider a situation where a property owner is selling a commercial building. The deed transferring ownership would contain language like: "Grantor, XYZ Corporation, hereby grants and conveys to Grantee, Green Valley Holdings LLC, the property located at 456 Business Avenue, as legally described herein."

  Here, "Green Valley Holdings LLC" represents the words of purchase. This clear identification in the deed specifies the corporate entity that is acquiring the commercial property, establishing them as the new legal owner.

• Example 3: A Living Trust Agreement

  Suppose a person establishes a living trust to manage their assets and distribute them after their passing. The trust document might include a provision stating: "Upon the death of the Grantor, the remaining trust assets shall be distributed equally among my three grandchildren: Emily Chen, Michael Rodriguez, and Sophia Patel."

  The phrase "my three grandchildren: Emily Chen, Michael Rodriguez, and Sophia Patel" serves as the words of purchase. It precisely names the individuals who are designated to receive the remaining assets from the trust, ensuring the trustee (the person managing the trust) knows exactly who the beneficiaries are.