What is the difference between legal title and equitable title?

Legal title and equitable title are two distinct kinds of title in Michigan inheritance law. Legal title refers to legal ownership of an asset, and it is absolute in nature. Legal title can be transferred from one person to another via various transactions, such as wills, probate, and intestacy. When someone has legal title to an asset, they are rightfully the owners of that asset and have all the legal rights and responsibilities associated with it. Equitable title, on the other hand, is a type of ownership that is based on fairness and equity. In situations where legal title hasn’t been properly transferred (such as in cases of fraud or negligence), someone with an equitable title to an asset can make a claim for ownership. Unlike legal title, which is absolute, equitable title can be disputed in court and isn’t always final until all legal proceedings are settled. In short, legal title is absolute and can be transferred, while equitable title is based on fairness and is not always final until all legal proceedings have been settled.

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