chapter 8 Flashcards
Intestate
To die without a will
Estate
Entirety of a persons assets and liabilities
Probate
Process of determining will is valid, appointing of administrator
Decedent
Person who has died
Per Capita
Per Person
Per Stripes
Per Family Line
Administrator
Person appointed to manage estate
Executor
Person appointed to manage an estate
Testator
Person appointed to manage as estate
Bond
A security to guarantee performance
Testamentary Trust
Trust created in a will
Inter vivos trust
Trust created during settler’s lifetime also called a living trust
Pour-over Will
Transfers assets to a trust
Elective Share
Also called forced inheritance legal requirement that spouse inherit percentage
Attestation
Witnessing the signing of a will and signing as verification
Holographic
In testator’s own handwriting
Nuncupative
Oral, spoken to another person, generally only valid for those in the armed services
Self-Proving
Witnesses have signed sworn statement testimony in court may be excused
Affidavit
Sworn Statement
Mystic
Sealed until testator’s death
Reciprocal
Wills with mirror terms as an agreement between testators
Interested Witnesses
Person who stands to benefit by some provision in the will
Codicil
Amendment or Addition to the will
Incorporation by reference
Making an outside document part of the current document by description
Ancillary Administration
Additional probate process because descendant owned property in another state
Step-Up Basis
Readjustment of “beginning” value of property upon inheritance
Capital Gains
Tax on difference between sales price and acquisition price
Carry Over Basis
Beneficiary inherits property subject to gain during testator’s lifetime
In Terrorem Clause
Provision threatening that anyone challenging legality of will or any part of it will be cut off or given a dollar amount instead of the gift provided in the will
Undue Influence
Domination such that victim cannot exercise free will
Fraud
False Statement of material fact, made with intent to deceive on which the victim reasonably relied
Duress
Compulsion by Threat
Trust
Property is held in mane of trustee for benefit of beneficiaries
Trustee
One who holds property for the benefit of another
Grantor
Person who creates trust
Settlor
Person who creates trust
Beneficiaries
Person who receives benefits of trust assets
Revocable
Trust in which settlor can terminate trust and regain control of assets
Life Estate
Ownership that terminates with death
