Will Substitutions

Question 1

Will Substitutes

Answer 1

Nonprobate assets do not involve court proceeding

Distribution is done in accordance with the terms of a contract, trust, or deed

Question 2

Joint Tenancy

Answer 2

Avoids probate because it has right of survivorship

Property passes to other joint tenant automatically

Question 3

Revocable Trust

Answer 3

Avoids probate because it is an inter vivos transfer

Distribution upon death of property placed in a trust by an individual during their lifetime is determined by the terms of the trust, not the terms of the individual’s will or the intestate rules

Question 4

Pour-Over Will

Answer 4

Avoids probate because it distributes property under a trust

Pour-over will = distributes all property into a trust

Question 5

Payable on Death Contract

POD

Answer 5

Avoids probate because it is an inter vivos transfer

It is an agreement to distribute property held under the contract at the decedent’s death to named beneficiary

Ex: Life insurance

Question 6

Deed

Answer 6

Avoids probate because it is an inter vivos transfer

A deed can affect a nonprobate transfer of property upon the death of the grantor if the deed is executed with the present intent of transferring a property interest to the grantee

If so, then the deed need not comply with the requirements for the execution of a will

Question 7

Exam Tip

Answer 7

In evaluating testator’s property, you must decide whether each piece is probate or nonprobate property