Wills And Trusts

Front 1

INTESTATE SUCCESSION

Back 1

Formal name for process involved in deciding "who gets what" when a decedent dies without a will, with a partially valid will, with an invalid will, or with a will that does not dispose of all the decedent's assets

Front 2

SHARE OF SURVIVING SPOUSE

Back 2

Established statutorily and is the amount of the estate the surviving spourse is entiteld to receive under the laws of intestate succession.

Front 3

SHARE OF CHILDREN AND MORE REMOTE DESCENDANTS

Back 3

The share of children and more remote descendants (such as parents, siblings, nieces, uncles, second cousins twice removed, in varying order of priority) generally comes after the surviving spouse is given his/her share of the intestate estate

Front 4

WILL

Back 4

Document detailing where and to whom the decedent wants property to be distributed upon death.

Front 5

STANDING TO CONTEST

Back 5

The P must demonstrate that if the will is denied probate, the P will take over the decedent's estate

Front 6

WILL EXECUTION REQUIREMENTS

Back 6

Formalities imposed by jurisdictions on their domicilaries in order to make a valid will. To make a valid will:

1. Must be of sound mind
2. Intending to make a will
3. At least 18 years old
4. Establish the objects of his bounty.
5. Must be in writing, signed by the decedent and signed by 2 competent witnesses

Front 7

INTERESTED WITNESSES

Back 7

People (or spouses of people) who take under a will. Depending on the jurisdiction, the will may be deemed invalid, or the will may be deemed valid, with only the gifts to the interested witness being deemed invalid.

Front 8

CODICILS

Back 8

Amendments to a will and must be executed with the same testamentary formalities (writing, witnesses, decedant's signature) that a will must comply with.

Front 9

REVOCATION OF WILL

Back 9

1. By cancelling
2. Obliterating
3. Tearing up
4. Torching will
5. Operation of law
6. Signing of new will

Front 10

DEPENDENT RELATIVE REVOCATION (CONDITIONAL REVOCATION)

Back 10

Allows a court to probate a revoked will because the new will was invalidly executed as long as the court is convinced that the decedent would have wanted the revoked will to be given effect if the new (but invalid) will can't be probated.

Front 11

SPOUSES FORCED OR ELECTIVE SHARE

Back 11

Statutory amoutn a jurisdiction provides for the surviving spouse, no matter what the will indicates.

Front 12

TRUST CONSTRUCTION

Back 12

Trustee owns legal title.
Beneficiaries own equitable title.
Trust must have some property in it. There must be at least one beneficiary in addition to a trustee, or else the trust fails. Must be at least 1 trustee

Front 13

REVOCABLE TRUST

Back 13

Where the donor (grantor) retains the power to revoke the trust prior to his death. For income and estate tax purposes, property placed in a revocable trust is not considered to be a complete gift.

Front 14

IRREVOCABLE TRUST

Back 14

One where the donor does not retain the power to revoke the trust. Property placed in an irrevocable trust is considered to be a completed gift for income and estate tax purposes.

Front 15

MODIFICATION OF TRUSTS

Back 15

Revocable trust may be modified by the donor. Can be modified with the consent of the donor and all beneficiaries.

Front 16

TERMINATION OF TRUSTS

Back 16

Terminates according to the terms of the trust or when there are no trust assets left in the trust

Front 17

DUTIES OF TRUSTEES

Back 17

The duty of care requires that the trustee pay close attention to all aspects of trust administration, including ensuing that trust assets are safe, making necessary tax filings, litigating and settling claims, and ensuring that distributions are made timely and properly. The trustee must place the interests of the trusts before his own, which means there can be no self-dealing or competing with the trust. The trustee is required to administer the trust and invest its assets in an impartial manner.

Front 18

PRUDENT PERSON RULE

Back 18

Requires trustees to act prudently when investing trust assets and not invest in speculative investments which might dissipate trust assets.

Front 19

CY PRES

Back 19

When a charitable trust's purposes are no longer applicable. This doctrine allows the trust to continue with the trust's purposes being modified to comport as nearly as possible with the trust's original purposes.

Front 20

ADOPTED CHILDREN

Back 20

Take from their adoptive parents in the same manner as natural-born children. Once adopted, the are not allowed to inherit through their birth parents, in others, they are allowed to inherit through their deceased birth parent, such as in the case of one parent dying, the surviving parent remarrying, and the children being adopted by the step-parent. The children don't lose their right to inherit through their deceased birth parent.

Front 21

INTESTATE SUCCESSION

Back 21

Process involved in deciding under state law who gets what when a decedent dies:

1. Without a will
2. With a partially invalid will
3. With an invalid will
4. With a will which does not dispose of all the decedent's assets.

Front 22

ADVANCEMENTS

Back 22

Gifts given in lieu of what one might inherit from the decedent. Jurisdictions generally require a writing to prove that a lifetime gift was an advancement and not just a lifetime gift.

Front 23

SIMULTANEOUS DEATH

Back 23

These statues determine the order of death when it is difficult to determine who dies first. This is important because in order to inherit from a decedent, one must survive the decedent. A person (or his estate) wishing to inherit has the burden of proving that he survived the decedent.

Front 24

WILL

Back 24

Document detailing where an to whom the decedent wants property distributed at death.

Front 25

JURISDICTIONS

Back 25

Jurisdictions have full faith and credit clauses in their statutes and consider a will valid even though it does not comply with its formal requirements so long as:

1. The will complies with the laws of the jurisdiction where executed, or the laws of the decedent's domicile.

2. The will does not offend the public policy of the jurisdiction where the will is being probated.

Front 26

HOLOGRAPHIC WILLS

Back 26

State-specific exception to the "two witnesses" requirement imposed by statute. Holographic wills must be signed by the decedent, and be completely (or substantially) in the decedent's handwriting.I

Front 27

INTEGRATION OF WILLS

Back 27

Integration of wills is a concept used by courts to determine the contents of a will. All of the connected papers are considered part of the will.

Front 28

CODICILS

Back 28

These are amendments to a will, and must be executed with the same tesetamentary formalities (writing, witnesses, decedent's signautre) that a will must comply with.

Front 29

REVIVAL

Back 29

In some jurisdictions, a decedent may revive a previously revoked will.

Front 30

CONDITIONAL REVOCATION

Back 30

Allows the court to probate a revoked will because the new will was invalidly executed as long as the court is convinced that the decedent would have wanted the revoked will to be given effect if the new will can't be probated. Doctrine of presumed intent.

Front 31

PARTIAL REVOCATION

Back 31

Occurs when decedent intends only to revoke part of his will, by crossing out a section or by operation of law.

Front 32

CONTRACTUAL WILLS

Back 32

If a decedent enters into a contract not to revoke a will, it may not be revoked.

Front 33

LAPSED LEGACIES

Back 33

A beneficiary must survive the decedent in order to inherit. Failure to survive means the gift lapses (unless the anti-lapse statute has been enacted).

Front 34

2 TYPES OF ADEMPTION

Back 34

1. Ademption by extinction- applies to specific bequests or devises. If the decedent does not own property at the time of death, the gift is ademed.

2. Ademption by satisfaction occurs when the decedent gives the beneficiary the gift prior to his death, instead of passing it to the beneficiary upon his death.

Front 35

DISCLAIMERS

Back 35

A beneficiary does not have to accept an inheritance. In order to disclaim a gift, the disclaimer must be in writing and timely made. Once made the disclaimer is irrevocable

Front 36

ABATEMENT

Back 36

The doctrine of abatement applies when the amount of gifts made in the will exceeds the amount of assets in the estate. Residuary gifts abate first, the general or demonstrative gifts, and finally specific gifts.

Front 37

CLASSIFICATIONS OF GIFTS

Back 37

1. Specific
2. Demonstrative
3. General
4. Residuary

Front 38

AGE REQUIREMENT

Back 38

A decedent must be at least 18 years old to have a valid will

Front 39

MENTAL CAPACITY

Back 39

A decedent must possess sufficient mental capacity to make a will

Front 40

UNDUE INFLUENCE

Back 40

A will will be denied probate, either partly or completely, of the will is the result of fraud, duress, or undue influence.

Front 41

MISTAKE

Back 41

If the decedent lacks the intent to make a will, the will is not valid.

Front 42

NO-CONTEST CLAUSES

Back 42

Clauses in wills that state that if the beneficiary contests the validity of the will, the beneficiary's gift under the will is forefitted.

Front 43

STANDING TO CONTEST

Back 43

In order to have standing to contest a will, the plaintiff must demonstrate that if the will is denied probate, the plaintiff will take under the decedent's estate.

Front 44

INTER VIVOS GIFTS

Back 44

If a decedent gives a gift before dying, it is an inter vivos gift passing outside of probate

Front 45

JOINT TENANCY

Back 45

The surviving joint owner takes the property in fee simple by operation of law.

Front 46

EXECUTION REQUIREMENTS

Back 46

As with wills, the maker has to be of sound mind, and there must be a signed document.

Front 47

REVOCATION

Back 47

Unless the document states how a living will of health care proxy is to be revoked, it can usually be done under teh same rules as those for revoking wills.

Front 48

AUTHORITY OF AGENT OR ATTORNEY-IN-FACT

Back 48

The agent has the authority detailed in the document, which provides for the agent to make a decision to withhold life-sustaining treatment when there is no chance of recovery.

Front 49

TRUST RES
(trust corpus)

Back 49

The trust must have some property in it

Front 50

REQUIREMENT OF BENEFICIARY

Back 50

There must be at least one beneficiary in addition to a trustee or else the trust fails.

Front 51

REQUIREMENT OF A TRUSTEE

Back 51

There must be at least one trustee (though a court will appoint a trustee rather than having the trust fail).

Front 52

TESTAMENTARY TRUST

Back 52

Trust created under the decedent's will

Front 53

POUROVER WILL

Back 53

A will which pours over any of hte decedent's assets injto an existing trust is referred to as a pourover will.

Front 54

CHARITABLE TRUST

Back 54

A trust which has a charity as the beneficiary. It's not subject to RAP.

Front 55

PROTECTIVE TRUSTS

Back 55

These allow donors to shiedl their assets from creditors while still retaining power over the trusts assets.

Front 56

DISCRETIONARY TRUST

Back 56

Trust where the trustee hsa the discretion over whether an to whom to distribute trusts income and assets.

Front 57

SUPPORT TRUSTS

Back 57

A trust in which the trustee is required to spend trust income and/or corpus support a beneficiary.

Front 58

SPENDTHRIFT TRUSTS

Back 58

Trust which provides that a beneficiary can't voluntarily or involuntarily assign his beneficial interest in the trust.

Front 59

POWERS OF INVASION

Back 59

For tax or other reasons, beneficiaries are sometimes given the power to demand trust corpus or income.

Front 60

PRUDENT PERSON RULE

Back 60

The prudent person rule is a concept which requires trustees to act prudently when investing trust assets, and not invest in speculative investments which might dissipate trust assets.

Front 61

DUTY OF CARE

Back 61

The trustee must pay close attention to all aspects of trust administration, including:

1. Ensuring trusts assets are safe.
2. Making necessary tax filings
3. Litigation and settling claims
4. Ensuring that distributions are made timely and properly.

Front 62

DUTY OF LOYALTY

Back 62

Trustee must place the interests of the trust before his own, sso there can't be any self-dealing or competing with the trust.

Front 63

DUTY TO ACT IMPARTIALLY

Back 63

Trustee is required to administer the trust and invest its assets in an impartial manner and not favor current income beneficiaries at the expense of remaindermen.

Front 64

PRINCIPAL AND INCOME ALLOCATIONS

Back 64

The trustee must allocate principal and income in an impartial manner, so as not to favor one class of beneficiaries over another.

Front 65

POWERS OF APPOINTMENT

Back 65

Power of appointment is given to a beneficiary allowing the beneficiary to choose who will become the next beneficiary. This allows the donor to delegate and postpone until a later date choosing who the next beneficiary will be.

Front 66

CHILDREN BORN OUT OF WEDLOCK

Back 66

Are treated the same as natural children and have the same rights under inheritance laws, provided proof of parenthood is made.

Front 67

DEATH WITHOUT ISSUE

Back 67

if a person dies without issue, jurisdictions provide for alternate distributions to parents, siblings, and other relatives in varying order of priority.