View
217
Download
0
Category
Preview:
Citation preview
Chapter 46Wills and Trusts
Chapter 46Wills and Trusts
2
What are the basic requirements for executing a will?
How may a will be revoked? What is the difference between a per stirpes
and per capita distribution? What are the four essential elements of a
trust? What is the difference between an express
trust and an implied trust?
What are the basic requirements for executing a will?
How may a will be revoked? What is the difference between a per stirpes
and per capita distribution? What are the four essential elements of a
trust? What is the difference between an express
trust and an implied trust?
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
3
WillsWills Will provides for a Testamentary disposition of
property by the Testator (one making the will). A will is the final declaration of how a person desires to
have his or her property disposed of after death. Die testate (One who dies after having made a
valid will) or intestate (without a will). Executor is a personal representative named in
the will. Administrator appointed by court.
Will provides for a Testamentary disposition of property by the Testator (one making the will). A will is the final declaration of how a person desires to
have his or her property disposed of after death. Die testate (One who dies after having made a
valid will) or intestate (without a will). Executor is a personal representative named in
the will. Administrator appointed by court.
4
Types of GiftsTypes of Gifts
Devise: gift of real estate.Bequest or Legacy: gift of personal
property.Types of Gifts: specific, general, or
residuary .Abatement.Lapsed Legacies.
5
Probate ProceduresProbate Procedures
Informal Probate Proceedings.Family Settlement Agreements.Small Estates.
Formal Probate Proceedings.Larger Estates.Guardianship appointment to a minor or
incompetent person and trust has been created to protect that minor or incompetent person.
6
Requirements for a Valid Will
Requirements for a Valid Will
Testamentary Capacity and Intent.Writing Requirements.Signature Requirements.Witness Requirements.Publication Requirements.
7
Revocation of WillsRevocation of Wills
Revocation by a Physical Act of the Market.
Revocation by a Subsequent Writing.Revocation By Operation of Law.
8
Intestacy Laws Intestacy Laws
Statues of descent and distribution which attempt to carry out the likely intent and wished of the decedent.Surviving Spouse and Children, Not in-laws.Stepchildren, Adopted children, Illegitimate
children.Grandchildren.
9
Surviving Spouse and Children
Surviving Spouse and Children
Surviving spouse usually receives only a share of the estate.1/3 if two or more children.1/2 if one surviving child.Entire estate if no children or grandchildren.
If no surviving spouse or child the order of inheritance is:Lineal descendants.Collateral heirs (if no lineal descendants).
Not spouses of the children, in-laws.
10
Stepchildren, Adopted Children, Illegitimate
Children
Stepchildren, Adopted Children, Illegitimate
ChildrenStepchildren -- not considered children of
deceased.Adopted children -- considered children
of deceased.Illegitimate -- must prove paternity.
11
Per Stirpes DistributionPer Stirpes Distribution
(Intestate). Method of dividing an intestate share by which a class or group of distributees take the share that their deceased parent would have been entitled to inherit had that parent lived.
12
Per Capita DistributionPer Capita Distribution
(Intestate). A class or group of distributees equally share in the inheritance.
13
TrustsTrusts
Trust -- A right of property (real or personal) held by one party for the benefit of another.
Trustee: holds property on behalf of the Beneficiary. Act with honesty, good faith, and prudence in
administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries.
14
Essential Elements of a Trust
Essential Elements of a Trust
Essential Elements:Designated beneficiary.Designated trustee.Fund sufficiently identified to enable title to
pass to the trustee.Actual delivery to the trustee with the intention
of passing title.
15
Express TrustsExpress Trusts
Living Trusts.Testamentary Trusts.Charitable Trusts.Spendthrift Trusts.Totten Trusts.
16
Implied TrustsImplied Trusts
Constructive Trusts.Arises by operation of the law in th interest of
equity and fairness.
Resulting Trusts.Arises from the conduct of the parties.
17
Special Types of TrustsSpecial Types of Trusts
Spendthrift Trust: Beneficiary is only permitted to withdraw a certain portion of the total amount of the trust at any one time.
Totten Trust: one person deposits funds in her name for benefit of another.
Spendthrift Trust: Beneficiary is only permitted to withdraw a certain portion of the total amount of the trust at any one time.
Totten Trust: one person deposits funds in her name for benefit of another.
Recommended