Will Substitutes Flashcards
In general, a persons who wants to transfer property at the moment of death, what does she do?
Make a will, but that does not preclude her from making certain inter vivos (lifetime) transfers without formalities of a will.
Which inter vivos trusts fully revocable / amendable, unless provided otherwise in the trust?
Those created on or after July 1, 2006
All trusts created before that date are irrevocable and cannot be amended unless expressly permitted under the terms of the trust.
What is a pour-over gift?
A testamentary gift to an inter vivos trust created during the testators lifetime or to a trust created by another person.
Valid regardless of whether the trust was created before or after the execution of the testator’s will.
When life insurance policies are held by a trust, the trustee has no duty to:
1) determine the appropriateness of any particular policy as a trust investment;
2) dispose of any policy in order to diversify the trust assets; or
3) exercise any policy option
Right of survivorship is presume for…
Joint bank accounts (can be rebutted with clear and convincing evidence)
What is a Totten trust?
Who retains control of the money during the depositor’s lifetime?
What happens if the beneficiary predeceases the depositor?
In a Totten trust, a bank account depositor declares herself trustee of the account fora person who is two receive the money in the account at the time of depositor’s death. Techinically, not a trust
The depositor. The beneficiary gets whatever is on deposit on the depositor’s death.
The trust terminates.
What does the Uniform Transfers to Minors Act authorize?
Gifts to custodians for a minor, creating a statutory trust under which the custodian has flexible powers to deal with custodial assets for the minor’s benefit. The custodianship may continue until the minor reaches age 21, if the transfer instrument so provides.
Does a power of attorney terminate on incapacity of the principal?
No, unless the instrument so provides. Nor does lapse of time affect the validity of a power of attorney.
The power of attorney continues unless limited, suspended, or terminated by the court.
When can a person with power of attorney make gifts or individuals/charities on behalf of the principal?
When the power of attorney expressly grants such authority and it is not otherwise prohibited
What is the effect of the death of a principal on a power of attorney
Terminates it, but only once the agent has actual knowledge of the death
What is a “springing” power of attorney?
A power of attorney effective only upon:
(1) a specified future date;
(2) the existence of a specified condition that may occur in the future.
Transactions that benefit an agent (holder of power of attorney) are …
Presumptively fraudulent
