Definition
Self-Acquired Property
Self-acquired property is property a person buys or earns with their own resources, over which they have full freedom to sell, gift or bequeath as they choose.
In contrast to ancestral property, which carries birthrights for coparceners, self-acquired property belongs solely to the person who acquired it, who may dispose of it during their lifetime or leave it by will to anyone. Children have no automatic birthright in a parent's self-acquired assets.
This freedom makes self-acquired property central to flexible estate planning — the owner can direct it precisely via a will, gift deed or trust. If the owner dies intestate, however, even self-acquired property passes by statutory succession rules, underscoring the value of making a clear will.
Related terms
- Will (Testament)A will is a legal document in which a person states how their assets should be distributed after death and who should carry out those wishes.
- Gift DeedA gift deed is a legal document used to voluntarily transfer ownership of property or money from one person (the donor) to another (the donee) without any consideration in return.
- Ancestral PropertyAncestral property is property inherited up to four generations of male lineage in a Hindu family, in which descendants acquire a right by birth.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.