Variations to Testate Distributions

Question 1

Lifetime Gift to a Beneficiary– “Satisfaction of Legacies”

• CL rule?
• NY rule?

Answer 1

• wills equivalent of advancements in intestacy
• CL: A lifetime gift (made after the Will’s execution) to a beneficiary named in the testator’s Will was presumptively made in partial or total satisfaction of the legacy, to be taken into account when distributing the testator’s estate at death
• NY RULE: Ny has rejected the satisfaction of legacies presumption by statute; THERE IS NO SATISFACTION OF LEGACY UNLESS proved by: (1) a contemporaneous writing made at the time of the gift; AND (2) signed by either the donor or the donee

Question 2

Def: Extrinsic Document

Answer 2

a document that is not part of the will itself

Question 3

Incorporation by Reference to an Extrinsic Document:

• Majority ROL
• NY ROL

Answer 3

Majority ROL- In almost all states, the terms of an extrinsic document can be incorporated by reference if: (i) the document was in existence when the Will was drafted, (ii) the Will shows an intent to incorporate the document, and (iii) the document is clearly identified by the language in the Will

NY ROL- NY does not recognize incorporation by reference. Everything has to be formally executed according to the 7-point test in NY.

Question 4

Acts of Independent Significance

• rule
• exception

Answer 4

Rule- Acts performed by the testator AFTER the Will is executed which have a purpose or motive independent of any testamentary purpose are given full effect when distributions are made

Exception- title documents (deeds, stock certificates, bank passbooks) can only be transferred as mandated by law, aka by proper transfer of title

example- T executed a will bequeathing “the automobile that I own at my death” to N, and “the furniture and furnishings in my living room to S. Thereafter, T trades his 1996 Taurus for a brand new Porsche. T also removes a Rembrant (worth 1 billion) from his office and mounts it on the wall in his living room. –> N takes the Porsche & S takes the Rembrant. However, if the living room contained titled documents, S WOULD NOT take them unless there was proper transfer of title.