SIXTEENTH CONCEPT: DISTRIBUTION OF THE ESTATE: WHAT DOES A BENEFICIARY TAKE?

Question 1

A will passes all property the testator owned at death, including afteracquired property. What is after acquired property?

Answer 1

Property acquired after the will was executed

Question 2

In 1990, testator executes a will leaving, “All of my estate to Mary.” At the time the will was executed, testator’s net worth is $1,000. When testator dies in 2003, testator has a net worth of $1 million.

Answer 2

Because a will can dispose of after-acquired property, Mary will take the full $1 million, not just the $1,000 or the property owned by testator at the time the will was executed.

Question 3

T devises 100 shares of chevron stock to beneficiary. Before T dies Chevron declares a stack dividend. who gets the dividend?

Answer 3

Beneficiary gets the 100 shares and the stock dividends.

Question 4

Define abatement

Answer 4

The process by which certain gifts are decreased.

Question 5

When does abatement arise?

Answer 5

[1] When it is necessary to pay for the share of the omitted child or omitted spouse or omitted domestic partner.
[2] When there is an omitted child or omitted spouse or omitted domestic partner, the gifts of devisees have to be decreased to come up with the statutory share of the omitted child or omitted spouse or omitted domestic partner.
[3] Thus, whenever you have an omitted child or omitted spouse or omitted domestic partner, there will almost certainly be the related issue of abatement.

Question 6

What is the order of abateement?

Answer 6

[1] First abate property not passing by the decedent’s will or revocable inter-vivos trust.
[2] Then abate from all beneficiaries of testator’s will and revocable inter-vivos trust pro rata, in proportion to the value of the gift received.

Question 7

Do you abate specific gifts?

Answer 7

the court can exempt the specific gift if abating the specific gift would defeat the obvious intention of the testator. This obvious intention must appear from the language in which the specific devise is created, or from the general terms of the will or trust

Question 8

Define: exoneration

Answer 8

The debt is extinguished

Question 9

Is there automatic exoneration in California?

Answer 9

No .

Question 10

How does exoneration work in CA?

Answer 10

the devisee takes the specific gift subject to the encumbrance, unless the testator’s will states that the specific gift is to be exonerated.