Wills/Trusts

Question 1

Will

Answer 1

Real Property can be transferred by Devise

Guiding principal is is te testators intent

Question 2

If a person dies without a will

Answer 2

Estate is distributed by intestate secession. Default estate plan created by the legislature

Question 3

Heirs

Answer 3

People who take decedent’s intestate estate. In order to be a heir you have to survive the dead person who dies without a will

Question 4

Devisee

Answer 4

A person who takes a devise by will

Question 5

Decedent

Answer 5

Dead person

Question 6

Testator

Answer 6

Dead guy who made a will

Question 7

Escheat

Answer 7

If a decedent dies without a will and without heirs, the decedent’s property goes to the state.

Question 8

Ademption

Answer 8

a devise of property that fails because it is not the testator’s estate at death

Basic rule: the gift fails and the intended recipient gets nothing

Satisfaction: If the testator gives the intended beneficiary the promised gift during life, then the beneficiary keeps the gift

Question 9

Lapse

Answer 9

The intended beneficiary prececeases (dies before) the testator. Traditionally, the gift fails and would fall to the residuary gift.

Question 10

Residuary Gift

Answer 10

Wills commonly include a residuary clause that gives the remainder of an estate to a specified recipient. The remainder is simply all the property left over in your estate after all the other gifts are accounted for, and after all estate expenses have been paid

Question 11

Anti-Lapse

Answer 11

Every state has an anti-lapse statute to prevent gifts fro failing because an intended recipient predeceased the testator.

In most states, to qualify under an anti-lapse statute, the predeceasing beneficiary must be a relative of the testator who dies leaving issue. That family member will take the gift from the predeceased.

Question 12

Trust Definition

Answer 12

A device for managing property with bifurcated ownership. The trustee owns legal title to the property, and the beneficiary holds equitable title (who gets the property)

Question 13

Charitable trust

Answer 13

trust designed to benefit the public and is charitable in nature

Question 14

Private Trust

Answer 14

trust designed to satisfy some legal purpose by giving property to a person or group for the benefit of another person or group

Question 15

Settlor

Answer 15

Person who creates the trust

Question 16

Beneficiary

Answer 16

Person who benefits from the trust
- Holds equitable title and all of the benefits
- Has standing to enforce the trust

Question 17

Trustee

Answer 17

Person (can be an entity) who manages the trust property and holds legal title

Question 18

Res

Answer 18

Property that is subject to the trust.

Question 19

Bifurcated Transfer

Answer 19

Ownership is decided

Giving someone legal title to act as owner (trustee)
Giving someone equitable title of benefit form that ownership (beneficiary)