(Q4) Wills and Estates

Question 1

Testator

Answer 1

Man that is making a will

Question 2

Testatrix

Answer 2

Woman that is making a will

Question 3

Who can make a will?

Answer 3

• An adult in most states who is of sound mind, understands the nature of their property, knows who their heirs are, and the consequences/outcome of the will

Question 4

Limitations of a Will

Answer 4

• Can not disinherit a spouse (they must receive at least their intestate share)
• Can disinherit children but must affirmatively state particulars in the will (in most states)
• Rule against perpetuitites: property must vest within 21 years of the date of death of the person

Question 5

Types of Wills

Answer 5

• Holographic
• Noncupative
• Codicil

Question 6

Holographic Will

Answer 6

A will that is written in the handwriting of the testator/testatrix
- not recognized in all states

Question 7

Noncupative

Answer 7

An oral will
- can include dying declarations
- must be witnessed and usually only applies to personal property
(ex. soldiers’ or sailors’ will)

Question 8

Codicil

Answer 8

A witten amendement to a will

Question 9

Formalities of a Will

Answer 9

• Signature of the testator/testatrix in the presence of a witness
• Number of witnesses depends on each state but usually requires 2 witnesses
• Date of the will
• Witnesses’ signatures in the presence of the testator and the presence of each other
• Notary is not necessary in all states

Question 10

Revocation of a Will

Answer 10

• Destruction
• Alteration
• Marriage
• Divorce
• Later will
• Afterborn or adopted children

Question 11

Abatement

Answer 11

A certain percentage of a gift is deducted to comply with terms of the will

Question 12

Ademption

Answer 12

If certain property is no longer owned by the testator at the time of death, the heir receives nothing

Question 13

Probate Court

Answer 13

Court that administers and oversees the distribution of an estate

Question 14

Devise

Answer 14

A gift of real property

Question 15

Devisee

Answer 15

The one that inherits the gift of real property

Question 16

Legacy/ Bequest

Answer 16

Gift of personal property

Question 17

Legatee

Answer 17

One who inherits personal property

Question 18

Executor

Answer 18

One named in the will by the testator to administer the estate

Question 19

Administrator

Answer 19

One appointed by the court to administer the estate

Question 20

Per Stirpes Distribution

Answer 20

the beneficiary’s share of the estate will pass to the beneficiary’s descendants or heirs

ex. if aunt betty dies before granny, aunt betty’s share of granny’s estate will go to Tavia

Question 21

Per Capita Distribution

Answer 21

• all living members of the beneficiary group receive an equal share.
• If a beneficiary dies before the testator, the deceased beneficiary’s share is returned to the estate and distributed evenly among the surviving beneficiaries

ex. if aunt betty dies before granny, her share is not passed to Tavia. It will be given to aunt Janet

Question 22

Intestate Succession

Answer 22

• Occurs when someone dies without leaving a valid will
• Distribution of estate will go by the probate acts of each state (will go through probate court and they will follow the laws of the state according to distribution)

Question 23

What happens if someone who dies has no will and no heirs?

Answer 23

If no heirs, real property will usually go to the county or state where it is located, and personal property to the state of residence of the testator.

Question 24

Small Estate Affidavit

Answer 24

a form that the administrator of a deceased person’s estate can use to collect the decedent’s assets, pay their debts, and distribute the balance of the estate to the decedent’s heirs and beneficiaries.

Question 25

When can a Small Estate Affidavit be used?

Answer 25

1. Deceased owned no real property and…
2. Value of all personal property is usually not more than $100,000 (depends on state statute)
3. Can avoid going to court

Question 26

Transfer on Death Instrument

Answer 26

A deed that takes effect when you die

Question 27

Stipulations for a Tranfer on Death Instrument

Answer 27

• Only takes effect after the death
• Can only transfer your own home or residence, if you’re the only owner
• Can avoid going to court
• any Joint Tenancy Property passes to the respective person no matter what the will says
• Any afterborn or adopted children have the same rights of natural-born children: must receive their intestate share if not already provided for in the will or unless otherwise provided in the will