Intent, Insane Delusion, Fraud, and Undue Influence

Question 1

4 Issues

Answer 1

Capacity
Insane delusion
Fraud
Undue influence

Question 2

Capacity

The capacity to make a will is the lowest capacity recognized in law.

At the time of execution, testator must satisfy four elements:

Answer 2

1. Testator must be at least 18 years of age.
2. Testator must be able to understand the extent of her property.
3. Testator must know the natural objects of her bounty:
4. Testator must know the nature of her act:

Question 3

Consequences of no capacity:

Answer 3

Entire will is invalid and will pass to intestate succession

Question 4

The Insane Delusion

Answer 4

A will can also be attacked if at the time of execution the testator was suffering from an insane delusion.

Question 5

Four elements needed to establish testator was suffering from an insane delusion:

Answer 5

1. Testator had a false belief
2. That false belief was a product of a sick mind
3. There is no evidence to support the belief, not even a scintilla of evidence.
4. Delusion must have affected testator’s will.

Question 6

Consequences of finding an insane delusion:

Answer 6

1. Only that part of the Will that was effected by the delusion is invalid
2. As to that part, it will go to the residuary devisee, or if none, or if the residue itself was infected by the delusion, by intestate succession.

Question 7

What is the residuary gift?

Answer 7

The residuary gift is that part of the estate not otherwise
expressly disposed of in the will.

Question 8

Distinguish lack of capacity from a delusion:

Answer 8

1. No capacity is a very severe problem because it goes to testator’s entire essence (not knowing one’s spouse).
2. With a delusion, however, while testator has a problem, it is a narrow one and testator is otherwise perfectly normal (believing one’s spouse is unfaithful).

Question 9

Elements: 5 elements to fraud:

Answer 9

[1] There must be a representation;
[2] Of material fact;
[3] Known to be false by the wrongdoer;
[4] For the purpose of inducing action or inaction; and
[5] In fact induces the action or inaction desired.

Question 10

3 types of fraud

Answer 10

[1] Fraud in the execution
[2] Fraud in the inducement
[3] Fraud in preventing testator from revoking the will

Question 11

Fraud in the execution

Answer 11

1. Someone forges Ts signature to a Will; OR
2. Testator is given a document to sign that purportedly is non-testamentary in nature, but in fact it is, and testator signs it.

Question 12

Consequence of finding fraud in the execution:

Answer 12

1. The entire Will is invalid
2. Thus, the property passes by intestate succession, unless there is prior will that was validly executed.
3. If there was a prior will that was validly executed, the
   instant will, as a consequence of the fraud, could in no way have revoked the prior valid will.

Question 13

Fraud in the inducement

Answer 13

The wrongdoer’s representations effects the contents of Ts Will

Question 14

Consequence of finding fraud in the inducement:

Answer 14

Only that part of the Will effected by the fraud is invalid

As to that part, the court has three options:
[1)] Give the property to the residuary devisees, if any; or
[2)] If there is no residue, to the heirs at law by intestate succession; or
[3)] Constructive trust remedy

Question 15

Constructive trust remedy

Answer 15

A constructive trust is a remedy to prevent fraud or
unjust enrichment.

In the scenario of fraud in the inducement, the court will deny probate to the portion of the will induced by fraud and allow the property to go either to the residuary devisees or the heirs at law and then make those
devisees or heirs a constructive trustee.

The constructive trustee has one duty:

• to transfer the property to the intended beneficiary, as determined by the court.

Question 16

Consequence of fraud in preventing testator from revoking:

Answer 16

The court will not probate the Will and thus the property will go to the heirs.

Simultaneously, the court also will decree that the heir is
a constructive trustee who has one duty: to transfer the
property to the intended beneficiary as determined by the
court.

Question 17

Undue Influence

Answer 17

Ts free agency is subjugated

Question 18

Undue Influence Established 3 Ways

Answer 18

[1] Prima Facie Case
[2] Case Law Presumption
[3] Statutory Presumption

Question 19

Prima Facie Case of Undue Influence: 4 elements:

Answer 19

1. Susceptibility
2. Opportunity
3. Active participation
4. An unnatural result

Question 20

Case Law Presumption of Undue Influence: 3 elements

Answer 20

1. A confidential relationship exists between testator and the wrongdoer.
   
   • In addition, in California, a confidential relationship arises whenever one person reposes trust in another. Thus, a confidential relationship can exist between two close friends.
2. Active participation
3. An unnatural result

Question 21

Consequences of finding undue influence (by prima facie case or by case law presumption):

Answer 21

1. Only that part of the Will effected by the undue influence is invalid
2. The part affected goes to:
   
   1. The residuary devisees if any, or, if none;
   2. To the heirs at law by intestate succession; or
   3. Via constructive trust remedy:

Question 22

Distinguish undue influence from fraud in the inducement:

Answer 22

Fraud: You have to lie

Undue influence: the wrongdoer is being perfectly honest

Question 23

Statutory Presumption of Undue Influence
California law statutorily presumes that a provision of an
instrument (will, trust, or deed) making a donative transfer to the following persons is the product of undue influence:

Answer 23

1. The person who drafted or transcribed the instrument; or
2. A care custodian (e.g. nurse) of a transferor who is a “dependent adult” (one unable to provide for his or her personal needs, or had difficulty managing his or her financial affairs); or
3. A person who is a spouse, domestic partner, blood
   relative, cohabitant, or employee of a person described in 1 and 2

Question 24

The statutory presumption does not apply to:

Answer 24

1. A donative transfer to a person who is the spouse,
   domestic partner, cohabitant, or blood relative of the transferor ; or
2. An instrument that is drafted or transcribed by a person who is the spouse, domestic partner, cohabitant , or blood relative of the transferor; or
3. An instrument reviewed by an independent attorney; or
4. A transfer that does not exceed $5,000, if the estate is over $100,000 (i.e., a “small” gift when there is a “big” estate).

Question 25

Consequences of finding undue influence under the statutory presumption:

Answer 25

1. The transferee is deemed to have predeceased the
   transferor without spouse, domestic partner, or issue.
   Thus, the gift “lapses” or fails, meaning that the
   transferee does not take.
2. As to that lapsed gift, it passes to the residuary devisee if any, or, if no residue, or if the lapsed gift is itself the residue, to the heirs at law by intestate succession.