Will Substitutes

Question 1

What are will substitutes?

Answer 1

Life insurance, joint tenancies/tenancies by the entirety, inter vivos trusts, bank account trusts, deeds, contracts, and inter vivos gifts. These are non probate assets.

Question 2

How is life insurance disposed of?

Answer 2

Per the terms of the contract

Question 3

What is a Totten trust?

Answer 3

deposit of money in a bank account in trust for another person (transfer complete on death, up until that time the depositor retains control)

Question 4

What are joint or survivor accounts?

Answer 4

A bank account deposit in the name of more than one person with a right of survivorship is generally effective to give the survivor an absolute right to the money (though decedent creditors can reach the joint account in the UPC to the extent the decedent deposited money in it and other estate assets are insufficient or at common law if opened for convenience with no intended right of survivorship).

Question 5

Can a deed deposited in escrow with delivery conditioned on grantor’s death be a valid non testamentary transfer?

Answer 5

Yes, a court may also construe an actually delivered deed whose effectiveness was conditioned on grantor’s death to be a present transfer of a future interest subject to a life estate by the grantor

Question 6

Are payable on death designations on bank accounts valid?

Answer 6

Not usually unless there is a statute

Question 7

What is required of contracts purporting to dispose of property on death?

Answer 7

They must comply with the formalities of wills to be enforceable