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15 Cards in this Set
- Front
- Back
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Community Property States
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Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin (UMPA), Alaska (elective)
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Community Property
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Property acquired during marriage in which both husband and wife have an undivided one-half interest, and not more than one-half can be disposed of by either party individually by will
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Separate Property
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Property that can be demonstrated to be the property of one spouse or the other
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Transmutation
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A voluntary change of the character of property by spouses for community property law purposes; known as classification or reclassification in Wisconsin
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Transmutation Restrictions
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(1) Federal law obligations (i.e. federal taxes) cannot be circumvented by transmuting property
(2) A transmutation that is effective between spouses may not be effective against third parties such as creidtors |
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Examples of Separate Property
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(1) Acquired before marriage
(2) Acquired by gift (3) Acquired by inheritance, bequest, or devise (4) Acquired in a court award (5) Transmuted into separate property |
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Time of Acquisition Rule or Inception of Title Rule
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The rule that provides that the character of an asset, separate or community, is established at the time the asset is acquired, and once established, the character is not altered by later events
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Methods to establish a spouse's separate property
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Show asset acquired by:
(1) Gift or inheritance (2) Purchase with separate property or by separate credit (2) Recovery for personal injuries |
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Commingling
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The mixing together of properties having different characters, such as the community and separate properties of either or both husband and wife in community-property jurisdictions
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Doctrines Establishing Separate Ownership in Life Insurance Policies
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(1) Proration or Apportionment Doctrine
(2) Inception of Title Doctrine (3) Nature of funds used for the Final Premium Payment |
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Proration or Apportionment Doctrine
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Method of establishing ownership of life insurance whereby the separate and community components of policy proceeds are proportions to the separate and community funds applied to the premiums paid
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Inception of Title Doctrine
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Method of establishing ownership of life insurance whereby the original funds used to purchase the policy establish its character; community funds used in paying premiums may be reimbursed, but does not share in value growth of the policy
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Nature of Funds Used for Final Premium Payment
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Establishes whether life insurance policy is community or separate property by looking at the character of the final premium payment
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Testator
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A person who leaves a will in force at death; a person who has a valid will at death
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Widow's Election
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Community property election for the surviving spouse to defeat the decedent spouse's testamentary disposition of the entire community property interest and thereby make claim to the one-half community property interest to which the surviving spouse is entitled under community property law; may accept the will or acquire one-half of community property if not provided in will
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