Construction Problems Flashcards
Divorce
Provisions are automatically revoked
Elective share of a trust
There are two doctrines that may allow a spouse to claim assets in a revocable trust: illusory transfer doctrine or the fraudulent transfer doctrine
Illusory - transfer doctrine
a surviving spouse can reach assets transferred during
the marriage by the deceased spouse on the theory that the transfer is economically
“illusory” because by simply exercising the power of revocation (which generally just requires a signed writing) the deceased spouse could have recaptured the assets she placed in the trust.
The fraudulent- transfer doctrine
A surviving spouse can reach assets transferred into
a revocable trust on the theory that the transfer was “fraudulent.
Rule of convenience
when a class gift is made to a group of individuals, such as the children of a named person, the class “closes” (that is, additional individuals may not join the class by satisfying the class eligibility requirements) when at least one member is entitled to
distribution.
What is the UPC approach to class gifts?
when a class gift is
made, each living beneficiary takes their share and the deceased beneficiary’s share will pass to their surviving descendants
What is the common law approach to class gifts?
If the gift to the deceased beneficiary has already vested and no statute, it will go to whoever the instrument says it should go to or if not specified the interest will go to whomever she left the interest to in her will or by laws of intestacy.
Transfers to children by a person who is not a parent
If a transferor is not the parent of an individual, the individual is considered a child of a parent if the parent performed functions customarily performed by a parent before the individual reached 18 years of age, or the parent intended to perform functions but was prevented from doing so.
