Wills Flashcards
New York Law Governing Wills and Estates
Estates Powers and Trusts Law (EPTL); Surrogate Court Procedure Act (SCPA)
Intestate
When a person dies without a will
Decedent
A person who dies without a will
Distributee
AKA heir, next of kin: a person who inherits property under intestate successin
Issue
AKA descendant: all persons who have descended from a common ancestor, including those in direct line of inheritance with the decedent (children, grandchildren, etc.)
Administrator
A person (usually a distributee) appointed as a personal representative to administer the estate of the decedent
Administration proceeding
A proceeding initiated by distributee to appoint an administrator and administer property of the decedent.
Intestate Property
Assets held in the decedent’s name alone, that do not pass by operation of law or by Will and which the administrator administers in accordance with the EPTL
Operation of Law
Property that passes automatically because of the way the property’s title is held, regardless of the existence of a Will or intestacy.
Residuary
The balance of the decedent’s/testator’s estate after all claims, taxes, and particular bequests have been distributed (the “rest” of the estate).
Testate
When a person dies with a will
Testator
A person who dies with a will
Beneficiary
A person who receives a bequest (sometimes called a legacy or devise, for those who inherit real property) under a will
Executor
A personal representative named in the Will to administer the estate of a testator
Probate proceeding
A Surrogate’s Court proceeding to judicially determine validity of will and intestate distributees, and appoint executor to administer the testator’s estate.
Probate estate
Assets held in the testator’s name alone that do not pass by operation of law and which the executor administers in accordance with the testator’s will.
Satisfaction of Legacy
A lifetime gift to a Will beneficiary
Application of intestacy rules
The EPTL’s rules about descent and distribution of property (both real and personal) in intestacy apply when (1) the decedent left no will, or did not properly execute it; or (2) the Will does not make a complete distribution of the estate, typically b/c of poor drafting by attorney, resulting in partial intestacy; or (3) A distributee successfully challenges the Will and the Will is denied probate.
Order of Priority for Appointment as Administrator
- Surviving spouse; 2. Children; 3. Grandchildren; 4. Parent; 5. Siblings; 6. Any other distributee.
Distribution: Decedent Survived by Spouse and No Children/Issue of Children
Rule: Surviving spouse takes the whole estate.
Distribution: Decedent Survived by Spouse and Children
Rule: Whether the surviving children/issue are of current marriage or earlier marriage, the surviving spouse takes $50,000 plus 1/2 of the residuary. The issue share in the leftover residuary, unless the estate is less than $50,000 (then the whole estate goes to surviving spouse).
Distribution: Decedent Survived by Children Only
Rule: If the decedent is survived by children only, and no child has predeceased the decedent, the estate passes to children in equal shares.
Distribution: Decedent Survived by Children and Issue of Predeceased Children
Rule: If the decedent is survived by children and the issue of predeceased children, the estate passes to ALIVE children, and the issue of dead children by representation per capita at each generation (notwithstanding any other devise of assets at the time of dead child’s death) (E.g., D has children A, B, and C. C and B died, leaving grandchildren F and G. When D dies, the property goes 1/3 to A; then the remaining 2/3 shares are divided evenly among the grandchildren F and G). Grandchildren whose parents are alive take nothing from the decedent, and in-laws take nothing.
Distribution: Decedent Not Survived by Spouse or Issue
(1) All to parents/surviving parent; if none, then (2) All to issue of parents, e.g., siblings and issue of deceased siblings, per capita at each generation; if none, then (3) One-half to maternal grandparents/surviving grandparent, or if neither is living, to their children/grandchildren, per capita at each generation; and one-half to paternal grandparents (same); (4) If not survived by grandparents or their children/grandchildren on one side, then ALL to grandparents and children/grand children on the other side; (5) If only survived by great grandchildren of grandparents, then half to maternal great grandchildren in equal shares, and half to paternal great grandchildren in equal shares; (6) If not survived by great grandchildren on one side, then all to the great grandchildren on the other side; and (7) if not survived by grandchildren of grandparents (first cousins once removed), and nearest kin are great-great grandchildren or issue of great grandparents, then the estate escheats to New York.
Per Stirpes Distribution (versus per capita)
In New York, default distribution is per capita at each generation in both intestacy and will. In most states, the distribution is per stirpes, under which the issue of a pre-deceased child takes the share that the predeceased child would have taken, if alive. A will can elect per stirpes distribution. (Note: if only one person at the first generational level died, per capita results in the same distribution as per stirpes).
Inheritance Rights of Children: Adoptive Children
Generally, adopted children and their issue have full inheritance rights both ways. Children generally lose inheritance rights from birth parents upon adoption, unless the child is adopted by the spouse of a birth parent (then inheritance rights for both are okay). In the case of a child who is adopted by a relative, the child inherits the BIRTH relationship -unless- the DECEDENT was the adopting parent in which case the child inherits the adoptive relationship. (e.g., G has three sons, A, B, and C. B dies, leaving orphaned child D. A adopts D. G dies. D takes under the BIRTH relationship (so can inherit 1/3 of the estate rather than none). However, if A dies, D takes from A under the adoptive relationship).
Inheritance Rights of Children: Nonmarital Children
A nonmarital child has the full inheritance rights from the mother and mother’s family. A mnonmarital child inherits from the birth father ONLY if paternity is established by one of four tests: (1) father marries mother after birth (legitimation by marriage); (2) An order of filiation in paternity suit is entered, adjudicating the man to be the cild’s father; (3) the father files a witnessed and acknowledged affidavit of paternity with the Putative Father Registry; or (4) paternity is established by Clear and Convincing Evidence, including but not limited to DNA test; open/notorious acknowledgment of child; gifts/visits/participation in life, BUT SUPPORT ITSELF IS NOT ENOUGH. Can establish paternity before or after death of father, but won’t go exhuming body for DNA.
Circumstances Disqualifying Spouse from Taking Intestate Share
“DISMAL”: DIVORCE (final decree of divorce or annulment, valid under NY law); INVALID DIVORCE (if SURVIVING spouse procured a divorce/annulment not recognized under NY law); SEPARATION (final decree of separation was rendered against SURVIVING spouse; “agreement” of separation does not result in disqualification unless there is specific language in the agreement waiving the surviving spouse’s rights under EPTL. Note also that no disqualification if final decree rendered against DECEASED spouse); MARRIAGE VOID because of incest, bigamy; and ABANDONMENT/LACK OF SUPPORT (SURVIVING SPOUSE abandoned or refused to support deceased spouse. Surviving spouse not disqualified if deceased spouse abandoned or refused to support him or her).
Operation of Disqualification of Spouse
Assume the surviving spouse pre-deceased the decedent, and drop the shares to the kids who whoever is next in line.
Slayer Statutes
New York has no “slayer” statutes per se, but the courts will create a constructive trust over spouse/party who kills decedent and stands to inherit. Joint tenancies are severed by one JT’s killing of the other, so that the bad spouse gets only the amount he put in and not the dead spouse’s share.
Lifetime Gifts to Intestate Distributee – Advancements
At common law, a lifetime gift to a child was presumptively an advancement of his intestate share, to be taken into account when distributing the estate at death. New York has rejected this rule, so there is no advancement unless proven by (1) A contemporaneous writing, made at the time of gift, and (2) signed by the donor or donee. The rule also applies to wills.
Calculating an Advancement
EXAMPLE: Fred died with an estate valued at $300,000. Before his death, Fred executed a signed writing giving his son, Adam, a gift of $30,000 as an advance from his inheritance. Fred has two other children, Ben and Carl. Ben and Carl’s share of the estate should be: ($300,000 + $30,000 = $330,000 / 3) = $110,000 each. Adam’s share of the estate should be: ($110,000 – $30,000) = $80,000.
Renunciation by Intestate Distributee
No one can be compelled to be a distributee, or to take property by operation of law. A distributee can disclaim or renounce interest in the decedent’s estate in whole or in part. The effect is that the disclaiming person is considered to have predeceased the decedent. A valid disclaimer must be (1) in writing, signed and acknowledged; (2) accompanied by a separate affidavit stating that no consideration was received for disclaiming (unless Surrogate’s Court authorizes receipt of consideration for disclaimer); (3) the disclaimer is irrevocable; and (4) filed with the Surrogate’s Court within 9 months after the date of death. SPECIAL NOTE: IF A DISCLAIMER WOULD DECREASE THE SHARE ANOTHER PARTY WOULD HAVE RECEIVED, IF THERE WAS NO DISCLAIMER, WE ACT AS THOUGH THE DISCLAIMER DIED ONE DAY AFTER THE DECEDENT (ONLY IN THIS SITUATION).
Disclaimer: Reasons and Parties
People may wish to disclaim to avoid taxes and creditors claims, but CANNOT DISCLAIM TO AFFECT RIGHTS UNDER MEDICARE/MEDICAID. Parties who can disclaim include: will beneficiaries; beneficiaries of life insurance; employment benefit plans, trusts, or other non-testamentary transfers; surviving joint tenants or tenants by entirety, to the extent the decedent furnished consideration for acquisition; and the decedent’s guardian, holder of durable power of atty; or decedent’s personal representative on decedent’s behalf, with Court approval.
Duly Executed Will
SEVEN POINT TEST: (1) testator is >18 years old; (2) Will is signed by testator or by someone at her direction, in her presence, but proxy cannot be counting as attesting witness and must sign her name and address; (3) testator’s signature is at the END THEREOF; (4) T signs the will or acknowledges earlier signature in the presence of each witness; (5) T publishes the will by communicating to witnesses that they are witnessing a Will, by declaring the document to be her “Last Will and Testament;” (6) there are at least 2 attesting witnesses, but they need not sign in each other’s presence or in the testator’s presence, although they must be able to attest to T’s signature prior to signing; and (7) An execution ceremony is completed within 30 days, which starts to run whn the first witness, not T, signs.
Codicil
A duly executed amendment to a will, made with the same seven formalities.
Location of the Signature in Will
The testator’s signature on a will must be at the end thereof. Failure to sign at the END of the will means that words following the signature are not given effect, EXCEPT that the entire will may be declared invalid if the matter following the signature is SO material that giving effect to that above the signature, and not that below, would defeat the testator’s intention.
Will Signature Miscellany
(1) If the signatures of witness and testator occur in the same event/meeting, it’s okay that the witness signs first and T signs next as long as generally the same “transaction.” (2) Assistance writing the signature is valid as long as T’s act is voluntary. (3) Legibility of T’s signature is irrelevant; even an “X” is okay. (4) It’s okay if T doesn’t sign the will in the presence of his witnesses as long as he acknowledges the earlier signature to them. (5) Witnesses don’t need to sign in each other’s presence. (6) Witness 2 can sign up to 30 days after Witness 1. (7) Wills are admissible to probate even if witnesses pre-decease testator.
Burden of Proof: Due Execution
The person who offers the Will for probate (usually the executor) has the burden of proving due execution. If one witness is not available to testify (dead/incompetent/cannot be found with due diligence), the testimony of the other suffices. If no witness is able to testify, the Will proponent must prove the signature of both the testator and one witness. If the Will is not self-proved, both attesting witnesses must testify as to the facts necessary to show due execution.
Self-Proving Affidavit
Attached to the back of the Will; a mechanism that recognizes the validity of most wills. Witnesses sign a sworn statement in the presence of an attorney reciting all statements they would make if called to testify in court about the will. This is a substitute for live testimony of witnesses and serves the same function as a deposition or interrogatory (it is sworn testimony). The affidavit can be signed any time after the Will is executed but is usually signed at the same time as the Will. The Will is admissible to probate on the strength of the sworn recitals in the Affidavit unless an interested party objects, in which case the formal rules of proof of due execution. (Not legally required in a Will).
Attestation Clause
This clause appears below the testator’s signature line and above the witnesses’ signature lines, reciting all the elements of due execution: “On the above date, the testator declared to us that the foregoing instrument was her Will and she asked us to serve as witnesses thereto. She then signed the Will in our presence, we being present at the same time. We then signed the Will as attesting witnesses.” This is prima facie evidence of facts presented (corroborative) but is not a substitute for live testimony (a Will proponent must still call witnesses to testify or prove signatures). This is useful if the witness has a bad memory or hostile. (Not legally required in Will).
Interested Witness Statute
The validity of the Will is not affected if a Will beneficiary is also an attesting witness, BUT the bequest to the witness is void unless EITHER: (1) At least THREE witnesses signed, and two were disinterested. The signature of the witness-beneficiary is not needed to admit the Will to probate so that the witness beneficiary can receive their bequest. OR (2) The interested witness would be an intestate distributee if T died without a will and the witness beneficiary then takes the LESSER of the bequest under the will or the intestate share. The rest of the Will is still valid.
Executors and Interested Witness Statute
The executor of an estate earns his compensation. Only gifts under the Will fall under the interested witness statute.
Foreign Wills Act
“END”: Execution; New York; Domiciled. A Will is admissible to probate in New York if it was validly executed under the law of the state where the Will was EXECUTED, regardless of the testator’s domicile at that time; or New York law; or the law of the state where the testator was DOMICILED either when the Will was executed or at death. These rules apply only to determine whether the Will is admissible to probate in New York. Once the Will is admitted to probate, New York law governs construction and application of its provisions.
Holographic Will
A will entirely in T’s handwriting, signed, but not witnessed. This is VOID in New York, UNLESS made by a member of the armed forces during declared/undeclared war, but void one year after discharge; and mariners at sea (but void three years after discharge).
Nuncupative Will
An oral will (recorded in any way). This is VOID in New York, UNLESS made by a member of the armed forces during declared/undeclared war, but void one year after discharge; and mariners at sea (but void three years after discharge).
Foreign Wills Act and Holographic/Nuncupative Wills
If the state in which the will was executed allows this type of will, then its okay.
Lawyer Malpractice
There is no privity of contract between beneficiaries to a will and the lawyer. The duty is only to the client, who is dead. The only exception is from a recent Court of Appeals case, in which the decedent was advised to include life ins. Policies outside of estate payable to his estate to decrease tax, but this in fact increased substantially. In this case, there is privity between the executor and bad lawyer.
Revocation of Wills
A will can be revoked in only one of two ways: subsequent testamentary instrument with appropriate formalities; or physical act (e.g., burning, tearing, cutting, or other act of mutilation), with INTENT to revoke. Writing “void” at the bottom of the will doesn’t count (but blackening out the signature does). \
Express Revocation
Typical express revocation language in a Will is “I hearby revoke all Wills heretofore made by me.”
Revocation by Implication
To the extent possible, read two instruments together (second treated as an amendment and only revokes to the extent of inconsistencies). But if the second Will is wholly inconsistent with the first, the first Will is revoked by implication.
Revocation by Physical Act of Another
The physical act must be: (1) at the Testator’s request; (2) in the Testator’s presence, AND (3) witnessed by at least two OTHER witnesses. This requires FOUR people to be there.
Presumptions Regarding Revocations of Wills
When a Will that was last seen in the Testator’s possession or control is not found after death, the presumption is that T revoked by physical act. When a will was last seen in testator’s possession or control is found in a damaged condition after T’s death, the presumption is that T revoked by physical act.
Changes to Will After Execution
Only two ways a testator can make changes in Will. (1) Write a new will revoking first will; or (2) Make a codicil to first, changing only parts. Both must be duly executed, satisfying the seven point test. Words after signing, witnessing are disregarded; PARTIAL REVOCATION BY PHYSICAL ACT IS NOT RECOGNIZED IN NEW YORK. Any interlineations and cross-outs made BEFORE signatures of T and Ws are valid.