Legal Definitions - words of severance

Words of severance are specific phrases used in legal documents, most commonly in deeds or wills that transfer property, to clearly state that multiple recipients will each receive a separate and distinct ownership interest in the property. These words ensure that each owner holds their portion independently, rather than as part of a collective, undivided whole. This distinction is crucial for determining how the property can be managed, sold, or inherited by each individual owner.

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

• Example 1: Inheritance of a Vacation Home

  Imagine a will that states: "I leave my vacation home to my two children, Sarah and Michael, each to possess their own separate one-half interest."

  Explanation: The phrase "each to possess their own separate one-half interest" serves as words of severance. It explicitly indicates that Sarah and Michael each own a distinct, individual half of the property. This means they can independently decide to sell their half, mortgage it, or pass it on to their own heirs, rather than owning the entire property jointly without defined individual shares.

• Example 2: Grant of Commercial Property

  A property deed for a commercial building states: "This property is hereby granted to 'Apex Innovations LLC' and 'Global Ventures Inc.,' with each company holding its own distinct and individual share."

  Explanation: The language "with each company holding its own distinct and individual share" acts as words of severance. It clarifies that Apex Innovations LLC and Global Ventures Inc. each have a specific, separate ownership stake in the commercial building. This allows each company to manage, sell, or encumber its portion independently, even if the building itself is not physically divided.

• Example 3: Distribution from a Trust

  A trust document specifies: "Upon the grantor's death, the remaining balance of the trust's investment portfolio shall be distributed to my three nieces, Emily, Chloe, and Isabella, each receiving their own proportionate share outright."

  Explanation: The phrase "each receiving their own proportionate share outright" functions as words of severance. It ensures that Emily, Chloe, and Isabella each receive a specific, individual amount of money or assets from the investment portfolio that they fully control, rather than the group collectively owning an undivided fund. Each niece can then use her received portion as she wishes, without needing the consent of the others.