CHAPTER 3 - ESTATE PLANNING DOCUMENTS Flashcards
WHAT ASSETS DOES A WILL COVER
ONLY PROBATE ASSETS
PROVIDES THAT IF THE PROPERTY SUBJECT TO A SPECIFIC BEQUEST WAS NOT IN THE POSSESSION OF THE TESTATOR, THE REQUEST WOULD FAIL AND THE BENEFICIARY WOULD RECEIVE NOTHING
ADEMPTION
WAS IS THE ORDER OF ABATEMENT IF THERE ARE NOT ENOUGH ASSETS IN AN ESTATE TO PAY OUT THE SPECIFICS OF THE WILL
- RESIDUE
- GENERAL
- SPECIFIC
HOW ARE SPOUSES AND ISSUES TREATED IN ABATEMENT CASES
THE SPOUSES AND ISSUES ABATE AFTER REQUESTS TO DISTANT RELATIVES
A NOTARIZED STATEMENT SIGNED IMMEDIATELY AFTER THE WILL EXECUTION CEREMONY BY THE TESTATOR AND THE WITNESSES AFFIRMING UNDER OATH THAT ALL OF THE REQUIREMENTS OF A VALID WILL HAVE BEEN COMPLIED WITH
SELF-PROVING AFFIDAVIT
3 WAYS TO REVOCATE A WILL
- SUBSEQUENT FORMALLY EXECUTED WILL
- PHYSICAL ACT OF DESTRUCTION
- OPERATION OF LAW (DIVORCE)
A TRUST CREATED DURING THE LIFE OF A CREATOR
INTER VIVOS TRUST
TRUST CREATED AFTER DEATH AS PART OF THE WILL
TESTAMENTARY TRUST
WHAT ARE THE BENEFITS OF A TRUST
- PROVIDE FOR MGMT OF ASSETS
- PROVIDE FOR SPLITS INTERESTS
- POSTPONE DIVIDING UP A GIFT TO A CLASS OF BENEFICIARIES
- SHELTER ASSETS
- AVOID PROBATE
REGARDING A TRUST, WHEN IS THE A GIFT CONSIDERED HAVING OCCURRED
WHEN THE TRUST IS FUNDED (ASSUMING THE DECEDENT OR TRANSFEROR ISN’T THE TRUSTEE)
APPOINTS A PERSON AS AN AGENT FOR THE PERSON SIGNING THE POWER AND AUTHORIZES THE AGENT TO STEP INTO THE SHOES OF THE PRINCIPAL IN HANDLING FINANCIAL AFFAIRS
VERY POWERFUL
DURABLE POWER OF ATTORNEY
WHAT IS THE DIFFERENCE IN A DURABLE POWER AND REGULAR POWER OF ATTORNEY
REGULAR POWER ENDS AT THE DEATH OR INCAPACITY OF THE PRINCIPAL
DURABLE POWER CONTINUES THROUGH DEATH AND INCOMPETENCE
PROVIDES FOR ADHERENCE WITH PRINCIPAL’S WISHES REGARDING HEALTHCARE DECISIONS WHEN UNABLE TO SPEAK
LIVING WILL
HEALTH CARE PROXY
