Unit 1 - Dispositions of Property

Question 1

Inter vivos transfer

1. define
2. examples
3. what is effective date?

Answer 1

1. transfer of property (present or future interests therein) that takes place during the transferor’s lifetime
2. transferring title by deed; gifts of present interests, transferor retaining life estate in property and giving transferee the remainder interest
3. effective date = time of delivery.

Question 2

Nonprobate

1. define
2. examples

Answer 2

transfer of property takes effect at death of the owner pursuant to a contractual arrangement entered into during while owner was alive.

2. JTWROS; POD bank accounts

(TEC 111)

Question 3

Transfer on Death Deeds

Answer 3

Created by the TX Real Property Transfer at Death Act (2015) to provide a “simple” nonprobate means of transferring real property at the owner’s death.

Grantor retains ownership of the property conveyed and the right to revoke the transfer.
–> if the deed is unrevoked at the time owner (grantor) ties, ownership passes nonprobate to the named grantee. (TEC 114).

Question 4

Probate

Answer 4

Transfer of property takes effect at the death of the owner pursuant to testate or intestate succession.

Successors in interest = either the owner’s heirs (as designated by state statute if there’s no valid, probated will; i.e. owner dies intestate); OR owner’s designated devisees if there is a valid probated will (i.e. owner dies testate).

(TEX 101).

ONLY probate property passes by will or intestate succession.

Question 5

Requirements for a valid will

Answer 5

(1) a will must be executed according to the requirements of the TEC;
(2) the testator must die; and
(3) a court of proper jdx and venue must admit the will to probate.

Question 6

Probate vs. Nonprobate Property

Answer 6

Probate = real or personal property a person possesses @ the time of death and that passes to the heirs or devisees at decedent’s death.

Nonprobate = passes to the beneficiaries pursuant to a contractual arrangement the decedent entered into prior to death.

Question 7

What happens to a person’s probate property when they die?

Answer 7

decedent’s probate property vests in the decedent’s heirs at law (NOT the decedent’s estate) .
–Difference b/w heirs at law and their estate?

Question 8

Is probate property subject to any liabilities?

Answer 8

Ownership of the probate property is subject to:

(1) the rights of the decedent’s creditors;
(2) it’s subject to the right of possession y the estate’s personal representative;

(3) and it’s also subject to total and complete divestment by the devisees.

Question 9

• When will is admitted to probate, who is vested/divested?

- How do we determine the effective date of the devisees’ ownership?

Answer 9

• Heirs at law are divested of ownership and testator’s devisees are vested of ownership.
• Ownership by the devisees relates back to the moment of decedent’s death. so their date of death = effective date.

Question 10

Who can the court appoint as Personal Representative of a decedent’s estate?

What does the PR do?

Answer 10

• PR may be either: (1) someone decedent explicitly named in his/her will; or
  (2) someone the court appoints

-Conduct a “formal administration” of the decedent’s estate

Question 11

Formal title for the person a decedent names/selects as personal representative of the estate

Answer 11

“Executor”

Question 12

If there is no will or if no PR named in a will, what do you call the person appointed by the court to be PR of a decedent’s estate?

Answer 12

“Administrator”

Question 13

What are a P.R.’s duties? Do they apply if decedent dies testate? Intestate?

Answer 13

It doesn’t matter if a person dies testate or intestate…the PR’s duties remain the same - the PR has the duty to:

(1) “marshall” the probate property;
(2) satisfy the decedent’s debts and obligations; AND
(3) deliver the remaining property of the estate to the decedent’s heirs or devisees.

Question 14

Independent Administration

Answer 14

Something that is unique to TX.