Will Substitutes

Question 1

When is a trust revocable?

Answer 1

An inter vivos trust is presumptively revocable and amendable by the settlor unless the terms expressly provide trust is irrevocable and cannot be amended

Question 2

What is a “pour over” gift?

Answer 2

A testamentary gift to an inter vivos trust
* This permits testamentary assets to be disposed of under a trust created during the testator’s lifetime
* Trust (and any amendments) need not be executed or attested with formalities required for a will
* Valid regardless of whether the trust is created before, concurrently with, or after the execution of testator’s will

Question 3

Example of Pour Over Gift

Answer 3

• Wife creates revocable inter vivos trust, naming Bank A as trustee, and providing: “Income to wife (i.e., herself) for life, and on Wife’s death for her children”
• Wife transfers securities worth $500,000 to the bank as trustee of this trust
• Wife then executes a will that leaves residuary estate “to Bank A, as trustee, to be added to and administered under the terms of the trusts that I executed”