52: Wills, Trusts, and Estates Flashcards
testator / testatrix
a person who makes a will
beneficiary
a person or party designated in a will to receive all or a portion of the testator’s property at the time of the testator’s death
statute of wills
a state statute that establishes the requirements for making a valid will
testamentary capacity
the requirement that a testator or testatrix be of legal age and “sound mind” when a will was executed
writing requirement
a requirement that a will must be in writing to be valid
attestation
the action of a will being witnessed by two or three objective and competent people
attestation clause
a clause in a will that usually follows the signature of the testator or testatrix in which the witnesses sign certifying that they have witnessed the signing of the will by the testator or testatrix
formal will
a document that contains a declaration of how a person wants his or her property to be distributed upon his or her death
codicil
a separate document that must be executed to amend a will. it must be executed with the same formalities as a will
revocation
a situation that occurs when a testator or testatrix intentionally tears, burns, obliterates, or otherwise destroys his or her will
subsequent will
a will that is executed after a previous will that revokes the prior will
joint will
a will that is executed by two or more testators
mutual wills / reciprocal wills
a situation in which two or more testators execute separate wills that leave their property to each other on the condition that the survivor leave the remaining property on his or her death as agreed by the testators
holographic will
a will that is entirely handwritten and signed by the testator
nuncupative will / dying declaration / deathbed will
an oral will that is made before a witness during the testator’s last illness
uniform simultaneous death act
an act that provides that if people who would inherit property from each other die simultaneously, each person’s property is distributed as though he or she had survived
probate / settlement of the estate
the process of a deceased’s property being collected, debts and taxes being paid, and the remainder of the estate being distributed
executor / executrix
a personal representative who is named in a testator’s or testatrix’s will who is appointed to administer the estate during the probate of a will
administrator / administratrix
a person who is appointed by the probate court to administer the estate of a testator’s or testatrix’s will if no one is named in the will or if the decendent dies intestate without a will
devise
a gift of real estate by will
bequest / legacy
a gift of personal property by will
specific gift
a gift of a specifically named piece of property in a will
general gift
a gift in a will that does not identify the specific property from which the gift is to be made (e.g., a gift of a certain amount of money)
residuary gift
a gift of an estate left after the debts, taxes, and specific and general gifts have been paid
residuary clause
a clause in a will that leaves the remainder of an estate after specific and general gifts are made and debts, taxes, and other costs are paid, to a beneficiary
renounce
the action by a person who has been left an inheritance that rejects an inheritance
lineal descendants
children, grandchildren, great-grandchildren, and so on of a testator
per stirpes distribution
a distribution of an estate in which grandchildren and great-grandchildren of the deceased inherit by representation of their parent
per capita distribution
a distribution of an estate in which each grandchild and great-grandchild of the deceased inherits equally with the children of the deceased
ademption
a rule that says if a testator leaves a specific devise of property to a beneficiary but the property is no longer in the estate when the testator dies, the beneficiary receives nothing
abatement
a rule that says if the property a testator leaves is not sufficient to satisfy all the beneficiaries named in a will and there are both general and residuary bequests, the residuary bequest is abated first (i.e., paid last)
intestate
the state of having died without leaving a will or trust. the persons who receive the property as determined by state intestacy statutes are called heirs
intestacy statute
a state statute that specifies how a deceased’s property will be distributed if he or she dies without a will or trust or if the last will is declared void and there is no prior valid will
escheat
a rule of state law that provides that if the deceased dies intestate without a will or trust and there are no surviving relatives, then the deceased’s property belongs to the state
trust
a legal arrangement established when one person transfers title to property to another person to be held and used for the benefit of a third person
trustor / settlor
a person who creates a trust
trust corpus / trust res
property and assets held in trust
express trust
a trust created voluntarily by the settlor
trust instrument / trust agreement
a written agreement that creates a trust
irrevocable trust
a trust that cannot be revoked by the trustor or settler who created the trust
income beneficiary
a person or entity to be paid income from a trust
remainder beneficiary
a person who possesses the right of remainder to real property upon the expiration of a limited or contingent estate (e.g., life estate); a person or entity who receives the trust corpus upon the termination of a trust
inter vivos trust
a trust that is created while the settlor is alive
testamentary trust
a trust created by will; the trust comes into existence when the settlor dies
constructive trust
an equitable trust that is implied by law to avoid fraud, unjust enrichment, and injustice
resulting trust
a trust that is implied from the conduct of the parties
charitable trust
a trust that is created for the benefit of a segment of society or society in general
spendthrift trust
a trust that is designed to prevent a beneficiary’s personal creditors from reaching his or her trust interest. all control over the trust is removed from the beneficiary
totten trust
a trust that is created when a person deposits money in a bank account in his or her own name and holds it as a trustee for the benefit of another person
living trust / grantor’s trust / revocable trust
a method for holding property during a person’s lifetime and distributing the property upon that person’s death
grantor / trustor
the party who transfers an ownership interest in real property; a person who creates a living trust
trustee
a party who holds legal title to the trust corpus and manages the trust for the benefit of the beneficiary or beneficiaries
undue influence
a situation in which one person takes advantage of another person’s mental, emotional, or physical weakness and unduly persuades that person to enter into a contract or make a will
health care directive / health care proxy / advance directive
a document in which the maker names someone to be his or her health care agent to make all health care decisions in accordance with his or her wishes, as outlined in the living will
health care agent
a person named in a health care directive to make all health care decisions in accordance with the wishes outlined in the maker’s living will
right to die
the right of a terminally ill person to make a decision to end his or her life by assisted suicide. assisted suicide takes place when a physician provides a terminally ill person with the means to end his or her own life. only a few states permit assisted suicide
medical aid in dying / physician-assisted death
occurs when a patient who has been diagnosed with a fatal disease and has less than an estimated period to live (e.g., six months) is prescribed a lethal dose of medicine that the patient self-administers to end his or her own life
