Trust me on this, the doctrine of emblements is relevant to the transfer on death deed we discussed earlier this week. To explain why, it is necessary to discuss what the doctrine of emblements is.
An emblement is defined as annual crops produced by cultivation. Thus, an emblement is corn, soybeans, or the like. The doctrine of emblements is important because it addresses ownership of annual crops between the time they are planted and the time of harvest.
The doctrine arises most often during life estate issues because the doctrine is applicable when a tenancy is of an uncertain duration. A life estate is of an uncertain duration as the life estate terminates at death. As a result of the doctrine, when a life estate tenant dies between the time annual crops are planted and harvested, the crops and resulting profit belong to the estate of the life estate tenant. The crops and resulting profit do not belong to the person or entity who inherits the land where the crops are growing.
How is this relevant to TOD deeds? Nebraska has a special provision in its statutes which allows a transferor in a TOD deed to designate whether crops growing at the time of the transferor’s death are transferred to the transferor’s estate or to one or more of the designated beneficiaries listed on the TOD deed. This statutory provision is because the doctrine of emblements.
Confusing? Or just have questions about other beginning farmer or succession planning issues? You are welcome to contact us because we’re here to help.