Wills and Trusts Flashcards
VALIDITY OF WILL
A valid will requires that testator have testamentary capacity (presumed to exist) and intent
Testamentary capacity:
T must be 18+ and of sound mind—no mental disorder or lack of mental capacity
1. 18+, understand nature of testamentary act, nature and extent of property, relations to beneficiaries
Testamentary intent Defenses
- Undue influence (UI) over T
- Fraud in the execution
- Fraud in the inducement
- Mistake in the execution
- Mistake in the inducement
- Sham will
- Conditional will
Undue influence (UI) over T:
Physical or mental coercion that controls T’s dispossession of property. Traditional factors: opportunity to influence T (confidential relationship), susceptibility of T, active participation by influencer, unnatural result (successful influence of dispossession)
a. [CA] Vulnerability of T, apparent authority of influencer, actions of influencer, equity of result
Fraud in the execution:
Misrepresentation of document, deception, switching papers
Fraud in the inducement:
Misrepresentation of law or facts induces T in reliance
Mistake in the execution:
Carelessness, accidentally signing wrong document
Mistake in the inducement:
Innocent misrepresentation, mistaking true facts (extrinsic evidence
Sham will:
C&C evidence showing the document was not intended to be a will invalidates it
Conditional will
If explicit condition precedent to will taking effect does not occur, will is invalid
Formal (attested) will:
Formally witnessed will 1) in writing, 2) signed by T (or another at T’s direction and presence), 3) signing or acknowledgment in joint presence of 2+ witnesses, 4) signed by 2+ witnesses during T’s lifetime (can be separate), 5) witnesses understand instrument being witnessed is T’s will
1. Interested witness (beneficiary): Unless 2+ other disinterested signing witnesses, presume fraud/duress/UI. If presumption not rebutted, gift to interested witness fails, may only take intestate share. If gift acquired through actual fraud/duress/UI, not entitled to any portion of gift
2. After 1/1/2009, a will not meeting witnessing requirements may still be admitted to probate if there is clear and convincing evidence that T intended the document to be his will
Holographic will:
Will 1) signed by T with 2) material provisions in T’s handwriting. No witnesses needed
Codicil
Alteration to existing will – valid if executed with required formalities as attested/holographic will
1. Can have holographic codicil to attested will and vice versa
Incorporation by reference
T may incorporate by reference a separate document into a will when 1) the document is in existence at execution, 2) will shows intent to incorporate, and 3) the writing is described
1. A will can also refer to a document not yet in existence at the time of execution if 1) an unrevoked will refers to the writing, 2) the writing is dated and in T’s handwriting or signed by T, and 3) the writing describes the items and the recipients of the property with reasonable certainty
Facts of independent significance
A will may dispose of property by reference to acts and events that take place after the execution and without formalities that attend to the will itself, i.e., things can happen (variables) after execution that can affect disposition without formalities (e.g., a will to pass a gift in equal shares to T’s employees. This provision is valid even if the employees change after execution)
Pour-over provision:
T may dispose of property by will to an existing inter vivos (established during lifetime) trust. Hence, an inter vivos trust may be a “will substitute,” provided the will is valid
1. This trust must be clearly identified in the will and executed before/concurrently with the will
2. This trust may be amended or revoked after execution of the will
3. This trust may be unfunded during T’s lifetime
Contractual wills
to make/revoke/contest wills are recognized in CA, if the existence of the contractual agreement can be proven because it is stated in the will along with the contractual provisions
Ambiguity in Wills
CA permits extrinsic evidence (EE) if T’s intent or language is ambiguous
REVOCATION & REVIVAL
A will may be revoked in whole or in part by a subsequent will that revokes it expressly or by inconsistency
Subsequent instrument
T makes new will or codicil (Will 2) that expressly or impliedly revokes previous will (Will 1). Attested will can be revoked by holographic will/codicil and vice versa
Physical act
Physical destruction—burn, tear, obliterate, interlineate—with concurrent intent to revoke
1. T may direct another to destroy the will in his presence
2. If only part of will destroyed, EE admissible to show whether T intended part/full revocation
3. If there are copies, destruction with intent of either the original or a copy is a valid revocation
Lost will
CA presumes that a will is known to be in T’s presence. If not found, CA presumes T revoked it
Dependent relative revocation
(DRR: “didn’t really revoke”) cancels a revocation based on mistake of law or fact
i. If T revokes on the mistaken belief that another disposition would be effective, and but for this mistake T would not have revoked his will, the revocation is set aside, and the original will remains in force
ii. If revoked by subsequent instrument, EE not admissible to show the mistake
iii. If subsequent instrument is defective in the first place, revocation is also ineffective—DRR inapplicable
Revival
If new Will 2 is revoked, Will 1 remains revoked unless evident from circumstances of Will 2 revocation
i. If Will 2 revoked by Will 3, Will 1 revived to extent of Will 3 showing intent for Will 1 to take effect
ii. If Will 2 revoked by physical act, can admit EE to prove T’s intent to revive Will 1
iii. Revival by republication by codicil: Making a codicil to the voided will (will speaks @ date of codicil)
Abatement
(estate insufficient to pay all debts and claims): Gifts are reduced (abated) pro rata under a will to satisfy the debts and claims of an estate in the following order by default—intestate property, residuary devises, general devises [non-relatives, then relatives], demonstrative devises, specific devises [non-relatives, then relatives]
Ademption by extinction
Specific devise fails (is adeemed) when T no longer owns the gift at death, BUT look to T’s intent. May occur intentionally (sale, gift) or involuntarily (fire, theft). Or T may collect balance of any sale price he intended the property to go to original beneficiary despite it no longer existing
Ademption by satisfaction
An inter vivos gift in advance will be treated as a satisfaction of a testamentary gift if 1) instrument specifies deduction of the lifetime gift from the testamentary gift, or 2) T declares in a contemporaneous writing that transfer is to be deducted from the testamentary gift, or 3) transferee acknowledges so in writing