Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/15

Click to flip

15 Cards in this Set

  • Front
  • Back
TOTTEN TRUST
When an account is made "in trust for" someone. It is excluded from probate and goes directly to the beneficiary. Totten trusts are revocable by will if properly identified therein. To validly revoke it, you have to properly identify the acct by number.
ELECTIVE SHARE
A surviving spouse is always enttitled to take 50k or 1/3 of the net estate, whichever is greater. The elective share estate is the probate estate plus testamentary subs. When 1/3 of this amt is found, all bequests (excluding life insurance) is subtracted and the spouse is entitled to this amount on top of all bequests to him/her. The other grantees must contribute proportionately
DISTRIBUTION OF RESIDUE ESTATE
A general legacy to "my issue" is distributed to descedents as a matter of representation just as if it went by intestacy.
RENUNCIATION
Anybody entitled under a will can renounce their entitlement by writing and signed w/in 9 mos of testator's death. The renouncing person is treated as if they predeceased the testator.
AFTERBORN CHILDREN
The EPTL provides that if a child is born after a will is executed and the will doesn't provide for the child, the child is entitled to share in any gifts made to his/her siblings. If no gift is made, the child can take his intestate share. This doesn't occur if the testator has made someother provision for his child.
ADEMPTION
A distributee is only entitled to the actual bequest if the bequest is a specific gift. An exception to this rule is casualty insurance paid after the testator's death.
REVOCATION OF WILL
A will can be revoked by a physical act, a subsequent will which evinces intent to revoke prior will or a codicil. There is no such thing as partial revocation. Only permissible if there's a validly executed codicil.
INTERESTED WITNESSES
A beneficiary under a will may serve as a witness as long as there are 2 other disinterested witnesses, otherwise he or she is a disqualified beneficiary.
ANTI-LAPSE STATUTE
The general rule is that if the beneficiary dies before the testator, the gift lapses and falls into the residuary estate. An exception is gifts to issue or siblings. The gift doesn't lapse and instead goes to issue per capita at each generation (ppl in same relation to testator take equal deaths)
SIMULTANEOUS DEATH
If 2 people die at the same time, it is assumed that the beneficiary predeceased the testator.
POUR OVER PROVISIONS
A clause in a will that transfers property in trust upon the death of the testator. There are 3 requirements: trust is validly executed, trust existed before or was simultaneouly created by the will, the trust was revocable
TESTAMENTARY SUBSTITITUES FOR ELECTIVE SHARE CALCULATION
US Savings Bonds
Retirement plans
Shareholder agreements
gifts causa mortis
intervivos trusts exceeding 10k given w/in 1 yr of T's death
totten trusts
Jointly held property
powers of apt the testator has
TRUST FORMALITIES
The trust must be in writing, signed and acknowledged by grantor/trustee before a notary or witnessed by 2 witnesses. The creator must have the intent to create a trust for a lawful purpose and the trust must be funded unless its pour over. Presumed irreovocable and spendthrift unless otherwise stated
SUPPLEMENTAL NEEDS TRUST
A special type of trust geared around government benefits. It allows a disabled person with a chronic and persistent disability to receive addl money on top of their govt benefits w/o losing them. The trust assents are meant to "supplement not supplant" govt benefits so that the disabled party can enjoy a higher quality of life. There can be no direct disbursements to the beneficiary--trustee must arrange payments. Assets must be used for needs other than those covered by SSI and Medicaid.
SELF SETTLED TRUST
When a trust is funded with assets that came from the beneficiary.