Wills - Non-Probate Transfers Flashcards
A gift inter vivos means
that the gift is given by a living person to another living person.
A valid transfer of property as an inter vivos gift occurs when:
The donor has intent to make a gift;
The donor delivers the gift;
AND
The donee accepts gift.
Actual deliver of an inter vivos gift
Actual delivery of property qualifies as valid delivery (e.g., physically handing the gift to the donee).
Constructive and symbolic delivery of property
(e.g., handing over the key to a safe that contains the gift) are valid methods of delivery if the subject matter of the gift cannot be physically delivered to the donee at the time the donor wishes to complete the gift.
Acceptance of an inter vivos gift is
presumed if the subject matter of the gift is something of value.
Generally, a surviving joint tenant is entitled to
the money in a joint bank account when the other joint tenant on the account dies (right of survivorship), UNLESS the account was set up merely for the convenience of the parties.
Creditors and joint tenant bank accounts: CL v UPC.
Under the common law, the deceased joint tenant’s creditors have NO claim to the money in the joint bank account.
Under the UPC, if a decedent’s estate is insufficient to pay the claims of creditors, the creditors’ claims to funds in the joint bank account are superior to the rights of the surviving joint tenant.
A Totten trust is
created when a person opens a bank account for himself as trustee for another.
Absent clear and convincing evidence of a different intent, the trustee of a Trotten trust
is the sole owner of the account throughout his lifetime.
Upon the trustee’s death, the remaining funds pass to the designated beneficiary free and clear of the trust.
Totten trusts are revocable both by will (revocation must be made expressly clear) and during the trustee’s lifetime if the trustee:
Withdraws all funds from the account;
OR
Delivers a signed revocation in writing to the bank naming a new beneficiary.
a) Life insurance is
a contract made between a policyholder and an insurance company.
Usually, life insurance contracts prohibit
the change of a beneficiary under the policy by execution of a will.
Most courts uphold such limitations that are set out in the insurance contract; however, some courts permit a policyholder to change a beneficiary by will if his insurance company does not object.
