Ch 51 Wills and Trusts Flashcards
True or false.
Wills provide for a testamentary disposition of property.
True
What is a will?
- Final declaration of how a person desires to have his/her property disposed of after death
What is a trust?
- Any arrangement by which property is transferred from one person to a trustee to be administered for the transferor’s or another party’s benefit
- OR right of property (real or personal) held by one party for benefit of another
What do you call one who dies after having made a valid will?
Testate
What do you call one who dies without a valid will?
Intestate
What do you call one who dies without a valid will?
Intestate
Define escheat
- No will or heirs
- State gets the estate
Can wills create a trust?
Yes
Can trusts exist in perpetuity?
NO (trust has to end 21 years after last person alive can benefit from it)
Can trusts exist in perpetuity?
NO (trust has to end 21 years after last person alive can benefit from it)
Can trusts exist in perpetuity?
NO (trust has to end 21 years after last person alive can benefit from it)
If you die intestate, who tells you how your assets will be distributed?
The state
If you die intestate, who tells you how your assets will be distributed?
The state
When does a will become effective?
When that person dies (X_X)
When does a will become effective?
When that person dies (X_X)
What does probating a will mean?
- Establish its validity and carry the administration of the estate through a process supervised by a probate court
What does probating a will mean?
- Establish its validity and carry the administration of the estate through a process supervised by a probate court
Are probate laws uniform?
NO (vary widely among states)
Are probate laws uniform?
NO (vary widely among states)
What is the Uniform Probate Code?
- Standardized statutory scheme among the states having adopted the UPC
What is the Uniform Probate Code?
- Standardized statutory scheme among the states having adopted the UPC
Define devise (w/r/t gifts by will).
Gift of real estate
Define bequest or legacy (w/r/t gifts by will).
Gift of personal property (car, money)
What is the difference b/w a bequest and a legacy (w/r/t gifts by will)?
No difference
A person who dies w/o having created a will is said to have died _____.
intestate
If a person dies intestate, what laws prescribe the distribution of property among heirs or next of kin?
Intestacy laws
If a person dies intestate and no heirs or kin can be found, what will have to the property?
Property will escheat (title will be transferred to the state)
What is the owner of a trust called?
Grantor or settlor
What is the owner of a trust called?
Grantor or settlor
What are two basic devices used in the process of estate planning?
Wills and trusts
Define estate planning
Determining in advance how one’s property and obligations should be transferred on death
Define estate planning
Determining in advance how one’s property and obligations should be transferred on death
What do you call the court responsible for administering any legal problems surrounding a will?
Probate court
What do you call the court responsible for administering any legal problems surrounding a will?
Probate court
What do you call the personal rep named in a will?
Executor
What do you call a personal rep appointed by the court for a decedent who dies w/o a will?
Administrator
Is testamentary capacity the same as contractual capacity?
NO (little lower level)
To have testamentary capacity, what must one have?
- understanding of the general nature of one’s assets and the natural object of their bounty
To have testamentary capacity, what must one have?
- understanding of the general nature of one’s assets and the natural object of their bounty
What is a nuncapative will?
Deathbed will
What do you call a deathbed will?
Nuncapative will
What are the requirements for a nuncapative will?
- Two or more witnesses who heard statement
- Applies to personal property
What is a holographic will?
- Will written entirely in testator’s handwriting
- Valid even w/o witnesses
What is a holographic will?
- Will written entirely in testator’s handwriting
- Valid even w/o witnesses
What do you call a will written entirely in testator’s handwriting?
Holographic will
What are the five requirements for a valid will?
1) Need testamentary capacity and intent
2) In writing
3) Need signature
4) Need witnesses (unless holographic will)
5) Publication requirements
What is a codicil?
- Changing just a specific provision
How can a will be revoked?
- Physical act of testator (e.g. shredding it)
- Revocation by a subsequent writing (e.g. codicil)
- Revocation by operation of law (e.g. marriage or divorce)
What is a codicil?
- Changing just a specific provision
Can a spouse elect to take a forced share of the estate if the deceased spouse does not provide any further support?
YES (50% in Indiana)
True or false.
A prenuptial agreement can address what happens upon one’s death.
True
True or false.
A prenuptial agreement can address what happens upon one’s death.
True
What is per stirpes distribution?
- Method of dividing an intestate share by which a class or group of distributees take the share that their deceased parent would have been entitled to inherit had that parent lived
What is per capita distribution?
- Each person takes an equal share of the estate at the same generational level
What is a trust?
- Right of property (real or personal) held by one party for the benefit of another
What are the essential elements of a trust?
1) designated beneficiary
2) designated trustee
3) fund sufficiently identified to enable title to pass to trustee
4) actual delivery to the trustee w/ intention of passing title
What are the essential elements of a trust?
1) designated beneficiary
2) designated trustee
3) fund sufficiently identified to enable title to pass to trustee
4) actual delivery to the trustee w/ intention of passing title
What is an express trust?
Trusts created specifically
What are two types of express trusts?
1) Living trusts
2) Testamentary trusts
What are three types of express trusts?
1) Living trusts
2) Testamentary trusts
3) Charitable trusts
What are four types of express trusts?
1) Living trusts
2) Testamentary trusts
3) Charitable trusts
4) Spendthrift trusts
What are four types of express trusts?
1) Living trusts
2) Testamentary trusts
3) Charitable trusts
4) Spendthrift trusts
What are the duties of a trustee?
- Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
What are the duties of a trustee?
- Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
- OBRIEN: Better to have institutional trustee
What are the duties of a trustee?
- Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
- OBRIEN: Better to have institutional trustee
Can a trust be terminated when its purposes become illegal?
YES
Can a trust be terminated when its purposes become illegal?
YES
Can a trust be terminated when its purposes become illegal?
YES
Can a trust be terminated when its purposes become illegal?
YES
