Week 1 Flashcards
What is the general approach to valuing people’s wishes after death? What is the name of this policy?
to follow people’s wishes after death
Freedom of disposition (by the person who died)
Does this class test the Uniform Probate Code for Wills? For Trusts?
No; don’t learn it
Yes; learn it
Does this class test the California Probate Code for Wills?
Yes; find the corresponding section of the UPC
What are the legal mechanisms for the policy of freedom of disposition? (6)
- No instruction - do nothing
- Will
- Joint Tenancy
- Life insurance
- Contracts with Payable on Death Provisions
- Trust
What happens when you do nothing? What is this system called?
There is a default system, which tries to approximate what the average person would have wanted done with their stuff
Intestacy
What is a will?
Gives instructions direct from the person who died what to do with their property
What is joint tenancy?
When you own real property jointly with someone else; you own the entirety of the real estate simultaneously; if the other owner dies, the surviving joint tenant gets the property
What is life insurance?
an arrangement about what to do with property after the death of an owner; usually pay a premium - a bet against them about how long you’re going to live; if you die earlier than the predictions, then you win the bet, bc your beneficiaries get more money than what you paid in
What is a contract with a Payable on Death (POD) provision?
Savings accounts usually have these provisions; the money goes to where you indicate
What is an estate plan?
some combination of the six methods
What is probate? Which methods of the six does it involve? (2)
when you die, you’re not there to distribute the property; some entity has to do the distributing - the court system
- Intestate
- Wills
What is dying intestate?
Dying with no instructions for your property
What is the problem of proof in probate courts?
the person who died is not around to testify
What happens when a will is rejected?
Probate courts go to intestate, the default
What is non-probate? Which methods of the six does it involve? (4)
there is already a system for distributing the property
- Joint Tenancy
- Life insurance
- Contracts with POD provisions
- Trust
What is the modern practice of estate planning?
is to minimize probate property in favor of non-probate property
What is the advantage of a will? (2)
- It’s a backstop, in case things go wrong with the non-probate options; a fail-safe
- it deals with guardianships - things that are not property, e.g., your children. you can nominate people as guardians of your children
What is a decedent? How to pronounce?
the person who died
duh-see-dent
What is a testator?
someone who wrote a will (or tries to); used in the context of probate
What is a beneficiary?
the survivors who receive the assets, through one of the methods
What is an executor?
the person that the testator (and decedent) named to execute the will
What is the classical conservative ideal of inheritance? Why is this interesting?
Limiting it; wanting to people to earn their money
The current conservative idea is very for freedom of disposition
