Heather Horne
Spring 2003
ESTATES AND TRUSTS OUTLINE
Prof. Zamperini, Spring 2003
Table of Contents
INTESTACY TERMS ..................................................................................................................................................... 4
WILL (TESTATE) TERMS ............................................................................................................................................ 4
TRUST TERMS .............................................................................................................................................................. 5
PROBATE ....................................................................................................................................................................... 6
I.
Probate Property = Property decedent owns at the time of death. ........................................................................ 6
II.
Disadvantages to Probate: ............................................................................................................................ 6
III.
Ways to Avoid Probate: ............................................................................................................................... 6
INTESTACY .................................................................................................................................................................... 6
I.
INTESTACY IN GENERAL ............................................................................................................................ 6
A.
Why Intestacy? ............................................................................................................................................ 6
B.
Intestacy Common Traits (see p. 67 for consanguinity chart) ...................................................................... 6
II.
INTESTATE SUCCESSION .................................................................................................................... 6
A.
Surviving Spouse’s Share -- Basic Statutory Schemes ............................................................................ 6
1.
California (Community Property State) -- §6400-6402 ..................................................................... 6
2.
Massachusetts (No CP but same concept as CA) ............................................................................... 7
3.
UPC § 2-101 .......................................................................................................................................... 8
B.
Kinds of Property Involved:...................................................................................................................... 8
C.
Lineal Descendants (Issue): ....................................................................................................................... 8
1.
§ 240 – Modern Per Stirpes (Division into Equal Shares by Right of Representation)........................... 8
2.
§ 246 -- Strict Per Stirpes Distribution ................................................................................................... 8
3.
§247 – Per Capita at Each Generation .................................................................................................... 8
D.
Ancestors and Collaterals ......................................................................................................... 9
E.
1.
2.
3.
4.
5.
6.
7.
F.
1.
2.
3.
4.
5.
III.
A.
1.
2.
3.
4.
5.
6.
B.
1.
IV.
A.
B.
C.
1.
2.
The “Modern Family” ............................................................................................................................... 9
Halfbloods ............................................................................................................................................. 9
Unborn Relatives of Decedent ........................................................................................................... 10
Basic Parent/Child Relationship........................................................................................................ 10
Establishing Natural Parent Relationship: §6453 ........................................................................... 10
Non-Marital (Illegitimate) Children: §6452. . .................................................................................. 11
Adoption .............................................................................................................................................. 11
Foster or stepparent: §6454. ............................................................................................................ 12
SPECIAL SITUATIONS......................................................................................................................... 12
Simultaneous death............................................................................................................................. 12
Advancement ...................................................................................................................................... 12
Guardianship ...................................................................................................................................... 13
Homicide.............................................................................................................................................. 13
Disclaimer............................................................................................................................................ 13
TESTAMENTARY LIMITATIONS ..................................................................................................... 14
Protection of Spouse ................................................................................................................................ 14
Non-Recognition of Dower/Curtesy, § 6412 ..................................................................................... 14
Modern Elective Share Statutes ........................................................................................................ 14
Waiver of Rights (Knowing) .............................................................................................................. 14
Homestead and Family Allowance .................................................................................................... 14
Premarital Wills and Omitted Spouses ............................................................................................. 15
Community Property ......................................................................................................................... 15
Protection of Kids/Family ....................................................................................................................... 15
Pretermitted Heirs (Kids Passed Over in Will) .................................................................................. 15
CREATION OF A WILL ........................................................................................................................ 15
Testamentary capacity............................................................................................................................. 15
Formalities ................................................................................................................................................ 16
Wills not in compliance with formalities ................................................................................................ 17
Holographic Wills ............................................................................................................................... 17
Form Wills (California Statutory Will) ............................................................................................ 17
D.
E.
Proof of Will ............................................................................................................................................. 18
Revocation ................................................................................................................................................ 18
2.
Lost wills .............................................................................................................................................. 19
F.
Revival ...................................................................................................................................................... 19
V.
WILL CONSTRUCTION ....................................................................................................................... 19
A.
Integration: ....................................................................................................................................... 19
B.
Incorporation by reference: ............................................................................................................. 19
C.
Acts of independent significance:
D.
Codicils ................................................................................................................................................ 20
E.
Extrinsic evidence:
F.
Meaning of specific terms .................................................................................................................. 20
G.
Class gifts .................................................................................................................................................. 21
VI.
LAPSED BEQUESTS.............................................................................................................................. 21
C.
Anti-lapse statute ....................................................................................................................................... 21
VII.
CHANGES IN PROPERTY AFTER EXECUTION OF WILL .......................................................... 21
A.
Classification of Types of Gifts (Transfers) ........................................................................................... 22
B.
Ademption by extinction:
C.
Ademption by satisfaction ....................................................................................................................... 22
D.
Abatement:
E.
Exoneration .............................................................................................................................................. 23
VIII.
PROTECTION OF SPOUSE AND CHILDREN .................................................................................. 23
A.
Spouse:
B.
Children .................................................................................................................................................... 23
3.
Pretermitted heir
IX.
CONTESTING THE WILL .................................................................................................................... 23
B.
Major Grounds for Contesting: (anyone who is an interested party may contest) ............................ 23
C.
Commencement of Will Contest Proceedings ........................................................................................ 24
D.
Undue influence ....................................................................................................................................... 24
E.
Fraud ........................................................................................................................................................ 25
F.
No Contest Clauses .................................................................................................................................. 25
X.
WILL CONTRACTS & SUBSTITUTES .............................................................................................. 26
A.
Will contracts ........................................................................................................................................... 26
B.
Will substitutes ......................................................................................................................................... 26
XI.
WILL ADMINISTRATION ................................................................................................................... 27
TRUSTS ........................................................................................................................................................................ 27
II.
CREATION OF TRUSTS ....................................................................................................................... 27
III.
FORMAL REQUIREMENTS ................................................................................................................ 28
A.
Private express trust ................................................................................................................................ 28
B.
Charitable trust ........................................................................................................................................ 29
C.
Resulting trust .......................................................................................................................................... 29
D.
Constructive trust:
IV.
POWERS OF TRUSTEE ........................................................................................................................ 29
V.
POUR-OVER TRUSTS ........................................................................................................................... 30
VI.
SPENDTHRIFT, SUPPORT & DISCRETIONARY TRUSTS ........................................................... 30
A.
Spendthrift trusts ..................................................................................................................................... 30
B.
Support trusts........................................................................................................................................... 31
C.
Discretionary trusts ................................................................................................................................. 31
VII.
MODIFICATION & TERMINATION .................................................................................................. 31
A.
Termination: ............................................................................................................................................ 32
B.
Presumption of revocability: ................................................................................................................. 32
C.
Consent ..................................................................................................................................................... 32
1.
Beneficiaries ........................................................................................................................................ 32
2.
Settlor and beneficiaries:
3.
Guardian ad litem: ........................................................................................................................... 33
D.
Trust with uneconomically low principal, Trust with Changed Circumstances:................................ 33
E.
Combination of Trusts:............................................................................................................................ 33
F.
Division of Trusts:
VIII.
POWERS OF APPOINTMENT .............................................................................................33
C.
Taxation issues ......................................................................................................................................... 33
IX.
FUTURE INTERESTS ............................................................................................................33
X.
RULE AGAINST PERPETUITIES ....................................................................................................... 34
Class gifts .................................................................................................................................................. 34
B.
2
D.
Reformation: .......................................................................................................................................... 35
E.
Unborn widow N/A:
F.
Posthumous Births: ................................................................................................................................ 35
G.
Effect of invalid interest: ......................................................................................................................... 35
H.
Charitable trusts:. .................................................................................................................................... 35
XI.
ADMINISTRATION OF TRUSTS ........................................................................................................ 35
POLICY ......................................................................................................................................................................... 36
XII.
Goals of Intestacy ..................................................................................................................................... 36
XIII.
Reasons for Creating Trusts ................................................................................................................... 36
XIV.
California Statutory Will – Advantages/ Disadvantages ...................................................................... 36
INDEX ........................................................................................................................................................................... 39
3
INTESTACY TERMS
administrator:
affinity:
ascendants:
Someone doing the filing if you have no will (cf, executor)
A relationship by marriage (e.g., in-laws)
Persons related to the decedent in an ascending lineal line (e.g., parents,
grandparents).
collaterals:
Persons related to the decedent but not in a lineal line (e.g., brothers,
sisters, nieces).
consanguinity: A biological or blood relationship. Legislative preference is for
consanguinity.
descendants:
Persons related to the decedent in a descending lineal line (e.g., kids and
grandkids). Legislative preference is given to descendants over
ascendants
descent:
when someone dies, realty passes to heirs
distribution:
How you distribute personal property
distributees:
Those who receive personal property from distribution
hotchpot:
All of the money distributed to heirs as advancements plus decedent’s
net estate.
intestacy:
Passage of property when the decedent dies w/o a valid will.
personal rep.: Someone in charge of administering the estate of decedent. They gather
assets, pay debts, and administer whatever is left.
 executor – if you have a will
 administrator – if you have no will
probate:
the process of moving goods from decedent to the beneficiary
WILL (TESTATE) TERMS
beneficiary:
bequest:
codicil:
devise:
devisee:
executor:
legacy:
legatee:
probate:
testator:
will:
Generic term for person who receives property under a will.
a gift of personal property in a will
A written amendment to an existing will
A gift of real property in a will
Person who receives the devise
Someone who does the filing if you have a will (cf, administrator)
a gift of money in a will.
Person receiving a legacy
to prove a document or declaration to be the decedent’s valid will.
Person that dies with a valid will.
A written document or oral declaration directing who will own the
decedent’s property upon the decedent’s death.
4
TRUST TERMS
beneficiary:
income:
principal:
settlor:
trust:
trustee:
person who receives the equitable title to trust property and the right to
benefit from that property according to the settlor’s instructions.
the profits or other earnings made by property after it’s conveyed in trust
form.
The property conveyed in trust form. (also referred to as res, corpus,
estate).
the person who creates a trust by making the property transfer which
divides title and imposes duties.
A property conveyance whereby the owner divides title to the property
into legal and equitable interests and imposes fiduciary duties on the
holder of the legal title to deal with the property for the benefit of the
holder of the equitable title.
person who holds legal title to the property and has the fiduciary duty to
manage the property according to the settlor’s instructions.
5
PROBATE
I.
II.
III.
Probate Property = Property decedent owns at the time of death.
Disadvantages to Probate:
A.
Delay in getting stuff from decedent to beneficiaries
B.
Public disclosure
C.
Expense (lawyers)
Ways to Avoid Probate:
A.
Gift/Sale (either outright or conditional...but see problem of Klimt
painting case)
B.
Jt. Tenancy
C.
“POD” – pay on death accounts.
D.
Life insurance (not probate property)
E.
Inter Vivos Trusts
INTESTACY
I.
II.
INTESTACY IN GENERAL
A.
Why Intestacy?
1.
No Will
2.
Will Fails
3.
If will says to go w/intestacy statute
B.
Intestacy Common Traits (see p. 67 for consanguinity chart)
1.
Provision for Surviving Spouse (legally married)
2.
Descendants (issue) – in general, presence of descendants blocks
anyone else.
3.
Ascendants
4.
Collaterals (people who share ascendants w/you, such as siblings)
5.
Escheat
INTESTATE SUCCESSION
A.
Surviving Spouse’s Share -- Basic Statutory Schemes
1.
California (Community Property State) -- §6400-6402
Basics: The surviving spouse receives the 1/2 of the community
and quasi-community property which belongs to the decedent, and
some fraction of the separate property. § 6401.
 Note: Community Property doesn’t apply to the “Domestic
Partner”
(a)
§6401(a): Spouse gets ½ of Community Property of
Decedent (plus their ½ of the CP).
6
(b)
(c)
§6401(b): Spouse gets ½ of Quasi-CP (plus their ½ of
quasi-CP)
§6401(c): What to do w/ Separate Property:
If:
1.
no issue
no parent
no sibs
no sib issue
2.
one kid OR
grandkids from dead kid OR
no kids but parent(s)
no parent(s) but parent issue
3.
More than 1 Kid OR
1 Kid + grandkids from dead
kid OR
grandkids from 2 or more dead
kids
Surviving Spouse (or
Surviving Domestic Partner
under § 37(b)) Gets:
100% of SP § 6401(c)(1)
1/2 of SP to Surviving Spouse
§ 6401(c)(2)
1/3 of SP to Surviving Spouse
§ 6401(c)(3)
(d)
Intestate Estate NOT passing to Surviving Spouse (or
the entire estate if no surviving spouse) goes as follows:
If Decedent Has:
Then:
Living Issue
To Issue in equal shares under
§240
No Living Issue
To Decedent’s Parent(s)
No Living Issue or Parent
To Issue of Decedent’s
Parents (in equal shares under
§240)
2.
Massachusetts (No CP but same concept as CA)
If X
Kids
Kin
Size of Estate
SS Gets:
Leaves:
1.
No
Yes
<$200,000
100%
2.
No
Yes
>$200,000
$200K + ½ of Real
Personal Property (1/2
of estate)
3.
Yes
N/A
N/A
½ RPP
4.
No
No
N/A
100%
7
3.
If:
1.
UPC § 2-101
Surviving Spouse Gets:

No (X)-kids AND no parents

(X)-kids are SS’s kids AND SS has
no non-(X) kids

No (X)-kids, but parent(s)
$200K + 75%

All (X)-kids are SS’s kids AND SS
has non-(X) kids
$150K + 50%

1 or more (X)-kids are NOT SS’s
kids (X’s kids from a former
marriage)
$100K + 50%
100%
OR
2.
3.
4.
B.
C.
Kinds of Property Involved:
1.
Community property is property earned or accumulated by either
spouse during the marriage. See § 28.
2.
Quasi-community property is property acquired in a noncommunity property state that would have been community
property had the couple resided in California at the time. See § 66.
3.
Separate property is property that a spouse receives by gift or
inheritance during the marriage, or that either spouse owned before
marriage.
4.
Most courts presume that property acquired during marriage is
community property.
Lineal Descendants (Issue):
1.
§ 240 – Modern Per Stirpes (Division into Equal Shares by Right
of Representation)
 Divided into equal shares starting at the nearest generation of
issue then living.
 each living member of the nearest generation gets a share
 the living issue of each deceased member of the
generation divides the deceased person’s share
2.
§ 246 -- Strict Per Stirpes Distribution
 Divides X’s estate at the level of X’s kids (whether or not
living at the time of X’s death)
3.
§247 – Per Capita at Each Generation
8

D.
E.
(share and share alike). Achieves equality among like-related
persons. Begins w/per capita w/representation, but once the
division at the first generation is done the shares are divided
equally among the next generation.
Ancestors and Collaterals
1.
If no issue, look for collaterals and ascendants (see p.67 for Table
of Consanguinity)
2.
§6402 -- Intestate Estate NOT passing to Surviving Spouse (or
the entire estate if no surviving spouse) goes as follows:
If Decedent Has:
Then:
6402(a): Living Issue
To Issue in equal shares under
§240
6402(b): No Living Issue
To Decedent’s Parent(s)
6402(c): No Living Issue or
To Issue of Decedent’s
Parent
Parents (in equal shares under
§240)
6402(d): No surviving issue,
To Grandparent(s) equally, or
parent or issue of parent
to the issue of grandparent(s)
if they’re dead (under §240)
6402(e): No living issue, parent
To Issue of a predeceased
or issue of parent, grandparent or spouse (under §240)
issue of grandparent
6402(f): No surviving issue,
To the Next of Kin in equal
parent or issue of parent,
degree, but where there are
grandparent or issue of
two or more collaterals in
grandparent, or issue of
equal degree who claim
predeceased spouse
through different ancestors,
the preference is to those of
the nearest ancestor
6402(g): No surviving next of
To parents of predeceased
kin and no surviving issue of
spouse or issue of such
predeceased spouse of decedent
parents if the parents are dead
(under §240)
The “Modern Family”
1.
Halfbloods
(a)
Definition: When two people share one parent, but not the
other.
(b)
Treatment Under the Law Differs by State
(1)
California -- §6406: Halfbloods and wholebloods
are treated the same (half=whole)
(2)
“Ancestral Property” – some states say that if
property comes through an ancestor, that property
would only go to wholeblood.
9
(3)
2.
3.
4.
Some states say that halfbloods get half of what a
wholeblood gets
(4)
Some states (MS) allow wholebloods to take to the
exclusion of halfbloods
Unborn Relatives of Decedent
(a)
§6407 – relatives conceived before decedent’s death but
born afterward inherit as if they were born during
decedent’s lifetime.
Basic Parent/Child Relationship
(a)
How to get a Parent/Child Relationship: The
Parent/Child Rltshp exists in two situations:
(1)
Between a child and the NATURAL parents.
§6450.
(2)
Between a child and the ADOPTING parents.
§6450(b).
(b)
What the Parent/Child Relationship does: The
Parent/Child Rltshp allows one (parent or child) to inherit:
 BY
 FROM
 THROUGH the other (parent or child)
Establishing Natural Parent Relationship: §6453
(a)
General Rule: Child usually has a simple time knowing
who Naturalmom is, but may have to await result of
paternity action to find out who Naturaldad is. Once that is
established, then have a parent/child relationship so that the
parties can inherit BY, FROM, THROUGH each other. No
req’t that naturalmom and dad be married.
(b)
A “natural parent” is:
(1)
The Naturalmom is one who gives birth to the
Child.
(2)
The Naturaldad is presumed to be the one who:
a.
Receives the child into his home and openly
holds out the child as his natural child.
OR
b.
Was married to Naturalmom and Child born
during their marriage
OR
c.
Is found by the court to be so in paternity
action but in order to have the Parent/Child
Relationship for inheritance, one of the
following must also exist:
10
1.
OR
2.
OR
3.
5.
6.
Paternity order entered during his
lifetime; §6453(b)(1)
Clear/convincing proof he held out
Child as his own; §6453(b)(2)
Impossible to hold out Child as his
own BUT other clear/convincing
proof. §6453(b)(3)
Non-Marital (Illegitimate) Children: §6452. If a child is born
out of wedlock, neither a natural parent (most applicable to
Naturaldad) nor a relative of that parent inherits FROM or
THROUGH the child on the basis of the parent and child
relationship unless Naturaldad both (1) acknowledges the child,
and (2) contributes to care/support of Child.
(a)
Note: This section limits Naturaldad’s rights but does
nothing to change Child’s rights. The rationale is that
Naturaldad must do some affirmative acts for the child to
inherit FROM or THROUGH the Child.
Adoption
(a)
General Rule: §6451(a): An adoption severs the parentchild relationship with natural parents of the adopted
person and substitutes a similar Parent/Child Rltshp
between the Child and the Adoptive parents (UNLESS –
see exception)
(b)
Exception: §6451(a)(1): The parent/child relationship (the
right to inherit BY, FROM, THROUGH) exists between a
Natural Parent and their child even though the kid has been
adopted if:
(1)
Natural parent and adopted kid lived together at any
time as parent/child OR at conception (of the child),
the natural parent was married to/cohabiting with
the other Natural Parent, AND the natural parent
died before the child was born. § 6451(a)(1)
AND
(2)
§6451(a)(2): The child was adopted by the spouse
of the natural parent OR the child was adopted
AFTER either natural parent died.
(c)
Exception to the Exception: §6451(b): Even if the
Natural Parent satisfies §6451(a)(1-2), the Natural Parent
can’t inherit FROM or THROUGH the Child once the
Child is adopted, UNLESS the Child is adopted by the
spouse or surviving spouse of the Parent.
11
7.
F.
Foster or stepparent: §6454. For purposes of intestate
succession, the relationship of parent and child exists between a
person and that person’s foster parent or stepparent if:
(a)
The relationship began during the person’s minority and
continued throughout the joint lifetime of the person and
the person’s foster parent or stepparent.
(b)
It is established by clear and convincing evidence that the
foster parent or stepparent would have adopted the person
but for a legal barrier. § 6454.
SPECIAL SITUATIONS
These are things that take you out of intestate succession: death,
disclaimer, assignment of right to inherit, advancements, and homicide.
1.
Simultaneous death
(a)
A person who fails to survive the decedent by 120 hours is
deemed to have predeceased the decedent for purposes of
intestate succession. § 6403(a).
(b)
If there is no clear and convincing evidence of the order of
death:
(1)
1/2 of the community and quasi-community property
will be dealt with as if one spouse had died first,
and the other half of the community and quasicommunity property will be dealt with as if the
other spouse had died first. § 103.
(2)
1/2 of the property held in joint tenancy will be
dealt with as though one joint tenant had survived
and 1/2 as if the other joint tenant had survived. §
223(b).
2.
Advancement
(a)
Elements:
Property the decedent gave during lifetime to an heir is
treated as an advancement against that heir’s share of the
intestate estate only if
(1) the decedent declares in a contemporaneous
writing that the gift is an advancement against the
heir’s share of the estate, or § 6409(a)(1)
(2) the heir acknowledges in writing that the gift is
an advancement. (this writing can be done at any
time.) § 6409(a)(2).
(b)
Valuation:
(1)
The property advanced is valued as of the time the
heir came into possession of it or as of the time of
death of the decedent, whichever occurs first. §
6409(b)
12
(2)
3.
4.
5.
If the value of the property is expressed in the
decedent’s contemporaneous writing or the heir’s
acknowledgment, that value is conclusive. §
6409(c).
(3)
For Issue: If person getting advancement doesn’t
survive decedent, advancement not taken into
account unless acknowledgment provides
otherwise. § 6409(d).
(c)
How to Distribute after an Advancement:
(1)
Hotchpot: All the money distributed to heirs as
advancements should be added to decedent’s net
estate, and the total amount (hotchpot) should then
be divided among the heirs in accordance with the
provisions of intestate succession. Amounts already
received should be charged against the shares of the
heirs who received those amounts.
Guardianship
(a)
A minor does not have the legal capacity to manage
property.
(b)
If a parent dies intestate, leaving property to a minor child,
a guardian of the property must be appointed by a court.
Homicide
(a)
A person who feloniously and intentionally kills the
decedent is not entitled to any property, interest, or benefit
under a will of the decedent, or by intestate succession.
Instead, the property, interest, or benefit passes as though
the killer had predeceased the decedent, except that the
killer’s issue receive nothing. § 250(a)(1)-(2), (b)(1).
(b)
When a joint tenant feloniously and intentionally kills
another joint tenant, the decedent’s share passes as the
decedent’s property and the killer has no rights by
survivorship. § 251.
(c)
A conviction of felonious and intentional killing is
conclusive. Without a conviction, the court may determine
by a preponderance of the evidence whether the killing was
felonious and intentional. § 254.
Disclaimer
Purpose of disclaimer: usually used to avoid estate taxes by
allowing others in lower tax bracket (such as your kids) to get the
stuff.
(a)
A beneficiary may disclaim any interest by filing a
disclaimer. § 275.
13
The creditors of the intended beneficiary can’t reach the
property disclaimed. § 281.
(1)
Exception: public agencies can sometimes recover
(c)
For intestate succession, the disclaimant’s share passes as
though the disclaimant had predeceased the decedent. §
282.
(d)
Disclaimer not a fraudulent transfer. § 283.
TESTAMENTARY LIMITATIONS
A.
Protection of Spouse
1.
Non-Recognition of Dower/Curtesy, § 6412
(a)
§ 6412 – Dower and Curtesy not recognized in California
(this is a CP state).
(1)
dower = widow gets life interest in 1/3 of deceased
H’s land
(2)
curtesy = H gets a life interest in all of W’s land,
but only if they had kids.
2.
Modern Elective Share Statutes
(a)
Purpose: Permit the surviving spouse to elect to take a
statutory percentage (usually 1/3) of the decedent spouse’s
probate estate even if the decedent spouse tried to limit the
SS to a smaller share.
(b)
Discussed more extensively pp. 166-84
3.
Waiver of Rights (Knowing)
(a)
Prenuptial/Antenuptial
(1)
Disclosure of Assets
(2)
Independent Advice/Independent Review (Lawyers)
4.
Homestead and Family Allowance
(a)
Homestead (§ 6520 et seq)
(1)
USE of Surviving Spouse (SS) or minors
(2)
Not longer than SS’s life or minority
(3)
Amount:
a.
CA: Court’s discretion based on need
b.
UPC: Property w/value of $25K
(b)
Family Allowance (§ 6540) – to provide livelihood
during probate
(1)
Minors (automatic allowance)
(2)
SS, dependent adults (receive only at court’s
discretion. § 6450(b).
(3)
Ltd to probate administration
(4)
Amount:
(b)
III.
14
IV.
a.
CA: What Crt says is reasonable
b.
UPC = $18K for 1 year
5.
Premarital Wills and Omitted Spouses
(a)
CA Approach (§ 21610).
(1)
[Legally unintentional, so provide for X’s intent] If
decedent marries spouse after execution of all
testamentary instruments, then:
a.
entitled to ½ of testator’s CP and SP. Also
entitled to intestate share spouse would’ve
received, but can’t amt. to more than ½ of
SP in estate
(2)
Exceptions (§ 21611):
a.
The will intentionally disinherits SS
b.
SS provided for by way of inter vivos
transactions or the size of IV transactions
c.
SS signed a waiver (see above)
(b)
CA Repealed Approach: (6560-62): If doesn’t provide for
spouse in will (compare w/new approach of testamentary
instrument)
(c)
UPC Approach (§ 2-301)
(1)
Assumes that testator’s intent to benefit others
negated when remarried (rebuttable)
6.
Community Property
(a)
Property that Can be Disposed of by Will under CP
Systems (§ 6101):
(1)
X’s Separate Property
(2)
1/2 of X’s CP
(3)
½ of X’s quasi-CP
(b)
If in Non-CP State, then Forced Elective Share becomes
applicable
B.
Protection of Kids/Family
1.
Pretermitted Heirs (Kids Passed Over in Will)
(a)
Kid gets intestate share in estate (§21620)
(b)
EXCEPTIONS: (§ 21621)
(1)
kid intentionally omitted from will
(2)
inter vivos provisions for kid
(3)
X had more than 1 kid and SS gets the estate
CREATION OF A WILL
A.
Testamentary capacity
15
1.
B.
An individual 18 or more years of age who is of sound mind may
make a will. § 6100.
2.
An individual is not mentally competent to make a will if, at the
time of making the will, any of the conditions specified in § 6100.5
are true:
(a)
Individual doesn’t (1) understand nature of testamentary
act; (2) understand and recollect the nature of his property;
OR (3) remember his descendants and others affected by
the will. § 6100.5(a)(1)
(b)
Individual has mental disorder w/ symptoms including
delusions or hallucinations, which cause the person to
devise his property in a way he wouldn’t otherwise have
done. § 6100.5(a)(2)
3.
An authorized conservator can make a will for a conservatee. §
6100(b) and §6100.5(c)
Formalities
1.
In general
(a)
The will must be in writing. § 6110(a).
(b)
The will must be signed by the testator or in the testator’s
name by some other person in the testator’s presence and
by the testator’s direction. § 6110(b).
(c)
The will must be witnessed by being signed by at least two
persons each of whom (1) being present at the same time,
witnessed either the signing of the will or the testator’s
acknowledgment of the signature or of the will, and (2)
understand that the instrument they sign is the testator’s
will. § 6110(c).
2.
Interested witnesses
(a)
Definition of “interested person”:
(1)
Heir, devisee, child, spouse, creditor, beneficiary,
and any other person having a property right in or
claim against a trust estate or the estate of a
decedent. § 48(a)(1)
(2)
Fiduciary representing an interested person.
§48(a)(3)
(3)
The meaning may vary from time to time. §48(b)
(b)
Purge: Unless there are at least two other disinterested
witnesses, the fact that the will makes a devise to a
subscribing witness creates a presumption that the witness
procured the devise by fraud or undue influence. § 6112(c)
(c)
If the interested witness fails to rebut the presumption, the
interested witness takes the proportion of the devise that
does not exceed the witness’ intestate share. § 6112(d).
16
If it’s established that the witness obtained the devise
through fraud or undue influence, the interested witness
takes nothing. § 6104
Wills not in compliance with formalities
1.
Holographic Wills
(a)
The will might be valid as a holographic will, provided that
the signature and the material provisions are in the
handwriting of the testator. § 6111(a). Note:
Commercially printed will forms OK (§ 6111(d))
(b)
Exceptions:
(1)
Omission of Date: If date in doubt, holographic will
invalid unless it’s established that it was executed at
a time when the testator had testamentary capacity.
§ 6111(b)(1)
(2)
Testator Lacks Testamentary Capacity: Invalid
unless established at the time will executed testator
had testamentary capacity. §6111(b)(2)
2.
Form Wills (California Statutory Will)
(a)
Testamentary Capacity: Anyone of sound mind over 18. §
6220.
(b)
Valid if:
(1)
Formed signed by testator. § 6226(c)(1)
(2)
Court satisfied that testator knew and approved of
will contents and intended it to have testamentary
effect. § 6226(c)(2)
(3)
Testamentary intent in the document is clear. §
6226(c)(3)
(c)
Execution; Procedure
(1)
Testator completes blanks and signs will. § 6221(a).
(2)
Each witness watches testator’s signing and each
witness signs name in presence of testator. §
6221(b).
(3)
Statutory Will form: There is only one California
Statutory Will. Its form is at § 6240.
(d)
Changes or Problems
(1)
Additions/Deletions to statutory will given effect
only where clear and convincing evidence shows
clear intent of testator. § 6226(b)
(2)
If the person makes the mistake of choosing more
than one disposition of property, then the will fails.
§6224.
(e)
Effect of Divorce or Annulment
(d)
C.
17
(1)
3.
D.
E.
Dissolution or annulment revokes any disposition of
property made by the will to the former spouse.
Property then passes as if the former spouse were
dead. § 6227(a)-(b)
A court may admit to probate a testamentary instrument executed
in substantial compliance with the formalities if clear and
convincing evidence demonstrates that the instrument expresses
the testamentary intention of the testator.
Proof of Will
1.
Subscribing Witness Available
(a)
Attestation: If will not contested, the will can be proved by
the evidence of one subscribing witness. § 8220(a)
(1)
Affidavit w/ copy of will OK § 8220(b)
(2)
Deposition OK § 8220 (c)
2.
Subscribing Witness Unavailable
(a)
You need proof of the handwriting of the testator § 8221,
AND one of the following:
(1)
proof of handwriting of one subscribing witness §
8221(a)
(2)
writing in will w/ signatures of all subscribing
witnesses. § 8221(b)(1)
(3)
Affidavit of someone w/ personal knowledge of
will’s execution. § 8221(b)(2)
Revocation
1.
A will or any part thereof is revoked by
(a)
operation of law -- if after executing a will the testator’s
marriage is dissolved or annulled, see § 6122 and § 6122.1
(for domestic partnership). The will itself may provide
otherwise.
(1)
Note: legal separation does not count as dissolution
or annulment. § 6122(d)
(b)
a subsequent will which revokes the prior will or part
expressly or by inconsistency. § 6120(a).
(1)
Effect of Revocation of Second Will on First Will:
The first will is revoked in whole or in part unless it
is evident from the circumstances of the revocation
of 2nd will or from testator’s contemporary or
subsequent declarations the he intended first will to
take effect. § 6123(a)
(c)
physical act
18
(1)
V.
that is, being burned, torn, canceled (crossed out),
obliterated, or destroyed, with the intent and for the
purpose of revoking it, by either (1) the testator, or
(2) another person in the testator’s presence and by
the testator’s direction. § 6120(b).
(2)
Duplicates: A will executed in duplicate or any part
thereof is revoked if one of the duplicates is burned,
torn, etc. § 6121.
2.
Lost wills -- If the testator’s will was last in the testator’s
possession, the testator was competent until death, and neither the
will nor a duplicate original of the will can be found after the
testator’s death, it is presumed that the testator destroyed the will
with the intent to revoke it. § 6124
3.
DRR: The doctrine of dependent relative revocation is an equitable
doctrine under which a court may disregard a revocation if the
court finds that the act of revocation would not have occurred but
for the testator’s mistake in law (e.g., a mistaken belief that a
subsequent disposition of property was valid) or fact.
F.
Revival
1.
2nd will revoking 1st will is then revoked  1st will remains
revoked unless there is evidence of the testator’s contrary intent. §
6123(a). If 2nd will is revoked by 3rd will, intent must appear in
3rd will. § 6123(a).
2.
Otherwise, once a will is revoked it is not revived unless
republished by re-execution or execution of subsequent codicil.
WILL CONSTRUCTION
A.
Integration: Under the doctrine of integration, all papers present at the
time of execution and intended to be part of the will are integrated into the
will. This intention must be shown either by physical connection (e.g.,
fastening or folding together), or sequence or continuity of thought in the
language of the several papers.
B.
Incorporation by reference: A writing in existence when a will is
executed may be incorporated by reference if the language of the will
manifests this intent and describes the writing sufficiently to permit its
identification. § 6130.
1.
intent
2.
writing in existence
3.
writing described in will so we know which writing is meant
C.
Acts of independent significance: A will may dispose of property by
reference to acts of independent significance – that is, acts done for some
reason other than to affect the will – whether the acts and events occur
before or after the execution of the will or before or after the testator’s
death. § 6131.
19
1.
D.
E.
F.
e.g., leaving something in a safe deposit box is act of independent
significance.
2.
c.f., leaving post-it notes on furniture doesn’t count.
Codicils
1.
A codicil is a document that amends or supplements a will. It may
add to, subtract from, explain, alter or expand provisions of a valid
will. The will remains in effect in every way except in those areas
which are modified by the codicil. A codicil does not entirely
dispose of the estate or entirely revoke the underlying will.
2.
The codicil may be in any form so long as it complies with the
statutory formalities (e.g., a holographic codicil may be made to a
witnessed will).
3.
Execution of a codicil “republishes” or “revalidates” the will – i.e.,
the will is considered as if executed on the date of the codicil.
Extrinsic evidence: Extrinsic evidence is admissible if the meaning of a
will is unclear. Extrinsic evidence is not admissible to change the plain
meaning of a will. § 6111.5.
1.
if there’s a question as to whether it’s a will, evidence is allowed as
to what the document is; or
2.
if the meaning of the will is unclear.
3.
latent ambiguity – like leaving to a person who has the same name
as someone else.
Meaning of specific terms
1.
The rules below apply to wills, trusts, and other instruments.
2.
If an instrument calls for property to be distributed to issue without
saying how the property should be divided, then § 245 requires that
they be allocated according to the rule of § 240, per capita with
representation. See “Dividing property among issue,” supra.
3.
If an instrument calls for property to be distributed per stirpes, by
representation, or by right of representation, divide the property
into as many equal shares as there are living children of the
designated ancestor, if any, and deceased children who leave issue
then living. Each living child of the designated ancestor is
allocated one share. The share of each deceased child who leaves
issue then living is divided in the same manner. § 246.
4.
If an instrument calls for property to be distributed per capita at
each generation, divide the property into as many equal shares as
there are living members of the nearest generation of issue then
living and deceased members of that generation who leave issue
then living. Each living member of the nearest generation of issue
then living is allocated one share. The remaining shares are
combined and allocated in the same manner among the remaining
20
VI.
VII.
issue as if the issue already allocated a share and their descendants
were then deceased. § 247.
5.
A transfer to the transferor’s (or another designated person’s)
heirs, next of kin, relatives, family, or persons described by words
of similar import, is a transfer to those people who would be the
transferor’s heirs. § 21114.
6.
A person’s heirs are those people entitled to take property by
intestate succession. § 44. A transferor’s heirs are to be
determined by asking who would take the transferred property if
the transferor died intestate at the time the property was to be
transferred. § 21114.
G.
Class gifts
1.
These rules about class gifts apply to wills, trusts, and other
instruments.
2.
Rule of Convenience: A transfer of a present interest to a class
includes all persons answering the class description at the
transferor’s death. § 21113(a).
3.
A transfer of a future interest to a class includes all persons
answering the class description at the time the transfer is to take
effect. § 21113(b).
LAPSED BEQUESTS
A.
The rules below apply to wills, trusts, and other instruments.
B.
A transferee who fails to outlive the transferor does not take under an
instrument. § 21109(a). If it can’t be proved by clear and convincing
evidence that transferee outlived transferor, the gift lapses. § 21109(b)
C.
Anti-lapse statute
1.
If a transferee (see def. below) (1) is dead when the instrument is
executed, (2) is treated as predeceasing the transferor, or (3) fails
to survive the transferor or until a future time required by the
instrument, the issue of the deceased transferee take in his or her
place in the manner provided in § 240. § 21110(a).
(a)
A transferee in this context is a person who is kindred of
the transferor or kindred of a surviving, deceased, or former
spouse of the transferor. § 21110(c).
(b)
A person’s issue are his lineal descendants. § 50.
2.
The issue of a deceased transferee do not take in the transferee’s
place if the instrument expresses a contrary intention or a substitute
disposition. § 21110(b).
D.
Where the anti-lapse statute does not apply:
1.
If there is a residuary clause, the devised property becomes a part
of the residue. § 21111
2.
Otherwise, the testator dies intestate as to that gift.
CHANGES IN PROPERTY AFTER EXECUTION OF WILL
21
A.
B.
C.
D.
Classification of Types of Gifts (Transfers)
1.
Specific gift = specifically identifiable property. § 21117(a)
2.
General gift § 21117(b)
3.
Demonstrative Gift = General gift that specifies the fund or
property from which the transfer is primarily made. § 21117(c)
4.
Residuary Gift = transfer of property that remains after all specific
and general gifts have been satisfied. § 21117(f)
Ademption by extinction: If the testator makes a gift of a particular
thing (a specific devise), and that thing is not in existence or is no longer a
part of his estate at the time of his death (because, for example, he gave it
away), the gift is adeemed by extinction. The legatee has no claim to the
property and also has no claim to the cash value of the property.
Ademption by satisfaction
1.
Property given by a testator during her lifetime to a beneficiary
after the testator’s will is executed is treated as a satisfaction of a
testamentary gift only if: (1) the instrument provides for deduction
of the lifetime gift from the testamentary gift, (2) the testator
declares in a contemporaneous writing that the transfer is to be
deducted from the testamentary gift, or (3) the testator
acknowledges in writing that the gift is in satisfaction of the
testamentary gift. § 21135(a).
2.
The property given during lifetime is valued as of the time the
beneficiary came into possession of it or as of the time of death of
the testator, whichever occurs first. If the value of the property is
expressed in the testator’s contemporaneous writing or the
beneficiary’s acknowledgment, that value is conclusive. §
21135(b)-(c).
3.
The doctrine of satisfaction does not apply when specific property
is given.
Abatement: Where a will, trust, or other instrument makes provision for
particular persons, but the grantor’s property is not sufficient to pay all
debts in full, some of the devises must be reduced to meet the debts.
Shares of beneficiaries abate pro rata within each class specified in §
21402, § 21403
1.
Order of Abatement (§ 21402):
(a)
Property not disposed of by the instrument. § 21402(a)(1)
(b)
Residuary gifts. § 21402(a)(2)
(c)
General gifts to non-relatives. § 21402(a)(3)
(d)
General gifts to relatives. § 21402(a)(4)
(e)
Specific gifts to non-relatives. § 21402(a)(5)
(f)
Specific gifts to relatives. § 21402(a)(6)
2.
Failed Transfers. See § 21111
22
E.
VIII.
IX.
Exoneration
1.
Specific gifts pass on regardless of debts. § 21131.
2.
Receipt of Specific Gifts: If money is still owed on a specific gift,
the recipient has to pay. § 21133.
PROTECTION OF SPOUSE AND CHILDREN
A.
Spouse: The decedent’s surviving spouse who married the decedent after
execution of all of the decedent’s testamentary instruments is entitled to a
forced share. See §§ 21610-11.
B.
Children
1.
If a decedent fails to provide in a testamentary instrument for a
child born or adopted after the execution of the all of the
decedent’s testamentary instruments, the child is entitled to a share
in the parent’s estate equal to what the child would have received if
the parent had died intestate. § 21620.
2.
Exceptions (§ 21621)
(a)
The parent’s failure to provide for the child was intentional.
(b)
The parent directed the disposition of substantially all his
estate to the other parent.
(c)
The parent provided for the child through non-probate
transfers.
3.
Pretermitted heir -- If at the time of the execution of the decedent’s
testamentary instruments, the decedent failed to provide for a
living child (by any means, not just in the testamentary instrument)
solely because (1) the decedent believed the child to be dead or (2)
was unaware of the child’s birth, the child is entitled to a share in
the parent’s estate equal to what the child would have received if
the parent had died intestate. § 21622.
4.
The share of the child is satisfied by taking from all beneficiaries
of all of the decedent’s testamentary instruments. § 21623(a)(2).
Specific devises are exempted if the testator’s “obvious intention”
would be frustrated. § 21623(b).
CONTESTING THE WILL
A.
General provisions
1.
The execution or revocation of a will is ineffective to the extent the
execution or revocation was procured by undue influence or fraud.
§ 6104.
2.
If the portion of the will due to the undue influence or fraud can be
separated from the rest of the will without destroying the testator’s
intent, it alone may be stricken, and the rest of the will may stand.
3.
The only people who have standing to contest the validity of a will
are those persons who would take if the will were held invalid.
B.
Major Grounds for Contesting: (anyone who is an interested party
may contest)
23
C.
D.
1.
Testamentary Intent (is the will a joke?)
2.
Testamentary Capacity
3.
Undue Influence
4.
Fraud
5.
Mistake
6.
Duress/Menace
7.
Revocation
8.
Lack of Formalities
Commencement of Will Contest Proceedings
1.
Who May Commence?
(a)
Any interested person, to find out when decedent died, to
appoint a personal representative, or to probate the
decedent’s will. § 8000
2.
Personal Representative Waiver/Competency
(a)
If person named as personal representative doesn’t petition
to administer estate w/in 30 days after they have knowledge
of decedent’s death, they waive their right to administer
(unless good cause for delay is shown). § 8001.
(b)
Contesting Personal Representative: Can be contested on
grounds of competency. § 8004
3.
Contents of Petition. See § 8002.
(a)
Must attach copy of will. § 8002(b)(1)
(b)
Must attach translation if will in foreign language. §
8002(b)(2)
4.
Hearing and Establishment of Facts. See § 8005 and § 8006.
(a)
Order Admitting Will to Probate or Appointing a Personal
Representative is Conclusive!! § 8007.
Undue influence
1.
Requirements
(a)
The testator must have been susceptible to undue influence.
(b)
The beneficiary must have had the opportunity to exercise
undue influence.
(c)
The disposition must have been the result of the undue
influence.
2.
Confidential relationship: Where the beneficiary is in a
confidential relationship with the testator, actively participates in
procuring the execution of the will, and unduly profits by it (i.e.,
obtains substantial benefits though not a normal object of the
testator’s bounty), a presumption of undue influence arises and
places the burden on the beneficiary to show that the will was
freely made.
24
3.
E.
F.
Bequests to attorneys or Drafters of Will
(a)
No provision of any instrument is valid to make a donative
transfer to the person who drafted the instrument (or any of
their relatives). § 21350.
(b)
The above rule does not apply if:
(1)
the transferor is related by blood or marriage to, or
is a cohabitant with, the transferee or the person
who drafted the instrument. § 21351(a).
(2)
the instrument is reviewed by an independent
attorney who attaches a “Certificate of Independent
Review.” § 21351(b).
(3)
The court determines, upon “clear and convincing
evidence” that the bequest wasn’t a result of fraud.
§ 21351(d)
Fraud
1.
Fraud occurs when a misrepresentation is made with the intent to
deceive and with the purpose of influencing the testator to do what
he would not have done if the misrepresentation had not been
made.
2.
Fraud in the inducement occurs when a person misrepresents facts
causing someone to execute, revoke or fail to revoke a will.
3.
Fraud in the execution occurs when a person misrepresents the
character or content of the instrument signed by the testator.
No Contest Clauses
1.
Definition
(a)
A provision in an otherwise valid instrument that, if
enforced, would penalize a beneficiary if the beneficiary
files a contest with the court. § 21300(d).
2.
Enforcement
(a)
Clause enforceable against a beneficiary who brings a
contest within the terms of the no contest clause. § 21303.
(b)
A no-contest clause is not enforceable against a beneficiary
who, with reasonable cause, brings a contest that’s limited
to, e.g., forgery, revocation. §§ 21306.
3.
Interpretation
(a)
No contest clauses are strictly construed in determining
intent. § 21304
4.
A beneficiary may apply to the court for a determination whether a
particular act by the beneficiary would be a contest within the
terms of the no-contest clause. § 21320(a).
5.
What DOESN’T Constitute a Contest (unless they’re expressly
identified in the no contest clause)?
25
(a)
(b)
X.
See § 21305 for a big list
Not enforceable against beneficiary if, with reasonable
cause, (see § 21306(b) for definition) contests on the
following grounds:
(1)
Forgery § 21306(a)(1)
(2)
Revocation § 21306(a)(2)
(3)
Action to establish invalidity of a transfer. §
21306(a)(3)
(4)
If the beneficiary contests a provision against a
person who drafted or transcribed the will. §
21307(a)
(5)
If the beneficiary contests a provision against a
person who witnessed the will. §21307(b)
(c)
Statute of Limitations
(1)
Tolled beginning with the date application is made
to the court. § 21308
WILL CONTRACTS & SUBSTITUTES
A.
Will contracts
1.
A contract to make a will requires proof of one of the elements
listed in § 21700.
(a)
Provisions of a will or other instrument stating provisions
of contract. §21700(a)(1)
(b)
Reference in the will to the contract plus extrinsic evidence
proving its terms. §21700(a)(2)
(c)
Writing signed by decedent evidencing contract.
§21700(a)(3)
(d)
Clear and convincing evidence of an agreement between
decedent and claimant. §21700(a)(4)
(e)
Clear and convincing evidence of agreement btwn decedent
and another person for benefit of claimant. §21700(a)(5)
(f)
Execution of joint/mutual wills doesn’t count. §21700(b)
2.
An aggrieved party can (1) seek to have the beneficiaries hold the
property in constructive trust for their benefit according to the
terms of the contract, or (2) seek damages (or possibly specific
performance) from the breaching testator’s estate for breach of
contract.
B.
Will substitutes
1.
Joint tenancy: When any joint tenant dies, his title vests
automatically in the surviving joint tenants.
2.
Joint bank accounts: Sums remaining on deposit at the death of a
party to a joint account belong to the surviving party or parties
26
XI.
unless there is clear and convincing evidence of a different intent.
§ 5302.
3.
Contracts performable at death: Contracts performable at death
(e.g., life insurance contracts) which are made payable to any
named beneficiary other than the insured’s estate pass directly to
the named beneficiary when the decedent dies.
4.
Inter vivos revocable trusts: Property which is transferred to an
inter vivos trust by the settlor during his lifetime passes by the
provisions of the trust at his death.
WILL ADMINISTRATION
A.
Appointment of Personal Representative (Executor):
1.
Intestate Decedent: Court appoints personal representative (can be
more than one person). § 8460.
2.
Priority of Appointment: Given in § 8461. (Surviving Spouse is
first, unless living apart).
3.
Nominee. § 8465
4.
Creditor Only = Denied appointment if being a creditor is their
only reason. § 8466.
TRUSTS
I.
II.
TERMINOLOGY
A.
A trust is a fiduciary relationship in which one or more persons (the
trustee) hold title to property, subject to an equitable obligation to keep or
use the property for the benefit of someone else (the beneficiary).
B.
The settlor is the person who creates a trust.
C.
The corpus of the trust is the property held in trust.
D.
The trustee holds legal title to the property, and the beneficiary holds
equitable title to it.
CREATION OF TRUSTS
A.
Declaration of trust. The settlor declares that he holds property for the
benefit of someone else. § 15200(a).
B.
Inter vivos trust. The settlor transfers property to another, while the settlor
is alive, to hold for the benefit of the settlor and/or a third person. §
15200(b).
C.
Testamentary trust. The settlor executes a valid will containing a trust
among its provisions. § 15200(c).
D.
By exercise of a power of appointment which the settlor holds. §
15200(d). A power of appointment is authority given by the owner to
another person, by deed or by will, to dispose of an interest in property to
someone other than himself.
E.
By contract. If settlor makes an enforceable promise to create a trust. §
15200(e).
27
III.
FORMAL REQUIREMENTS
A.
Private express trust
1.
Intent
(a)
Intent to create a trust must be “properly manifest[ed].” §
15201. Precatory words (words of hope, wish, desire, or
recommendation) are not, in and of themselves, enough to
create a trust. The settlor must have intended to create
enforceable obligations on a trustee to deal with designated
property for someone else’s benefit.
(b)
Oral Expression: The settlor’s intent can be expressed
orally if the corpus is limited to personal property.
However, the existence of an oral trust must be established
by clear and convincing evidence; the oral declaration of
the settlor standing alone is not sufficient. § 15207.
(c)
Real Property: If the trust corpus includes real property, the
settlor’s intent must be expressed in a writing signed by the
settlor to satisfy the Statute of Frauds. § 15206.
(d)
Consideration: Not necessary to create a trust, but a
promise to create a trust in the future is enforceable if
contract requirements are met. § 15208.
2.
Trust property: The trust property must be in existence when the
trust is created. § 15202. An expectancy is not enough to qualify
as trust property. However, a future interest in property qualifies.
3.
Trust purpose: A trust may be created for any purpose that is not
illegal or against public policy. § 15203. An indefinite/general
purpose is OK. § 15204.
4.
Beneficiary
(a)
The beneficiary/class of beneficiaries must be
“ascertainable with reasonable certainty,” or someone must
have the power to select the beneficiaries. § 15205.
(b)
When you have one trustee and one beneficiary, they can’t
be the same.
(c)
The settlor of a trust can be the beneficiary.
(d)
Exception to doctrine of merger:
(1)
Where there is one settlor who is the sole trustee
and sole beneficiary during the settlor’s lifetime. §
15209(a).
(2)
Where there are 2+ settlors, one or more of whom
are trustees, and the beneficial interest in the trust is
in one or more the settlors during the lifetime of the
settlors. §15209(b).
5.
Trustee: The trust won’t fail for want of a trustee; the court will
appoint one.
28
B.
IV.
Charitable trust
1.
Intent, trustee, and trust property as defined above
2.
An expressly-designated charitable purpose or aim (e.g., to
advance education, relieve poverty, or promote government or
municipal purposes).
3.
A definite definable class to be benefited (the class can’t be so
large that it includes all of mankind), although the trust cannot
name specific people to benefit from the trust.
C.
Resulting trust
1.
Arises by operation of law:
(a)
when an express trust fails or makes an incomplete
disposition, or
(b)
where one person pays the purchase price for property and
causes title to the property to be taken in the name of
another person who is not a natural object of the
purchaser’s bounty.
2.
Once a resulting trust is found, the trustee must reconvey the
property to the beneficial owner upon demand.
D.
Constructive trust: Flexible remedy created by courts to get legal title
from a person who shouldn’t have it (through fraud, mistake, unjust
enrichment, etc.), and force him to convey it to someone who should have
it. Once a constructive trust is found, the trustee must reconvey the
property to the beneficial owner
POWERS OF TRUSTEE
A.
General Powers:
1.
Powers conferred by trust instrument. § 16200(a)
2.
Powers conferred by statute (except as limited in trust instrument).
§ 16200 (b)
3.
Power to perform any act under the trustee standard of care (except
as limited by trust instrument). § 16200(c).
B.
Collect and Hold Property. § 16220.
C.
Accept additions to the trust. § 16221.
D.
Continue/Manage Business
1.
Continue Business (see § 16222 for limitations).
2.
Consent to a change in form of business. § 16237
E.
Manage Money:
1.
Invest in U.S. Government
(a)
Where the trustee is directed to invest in U.S. government,
money market mutual funds are OK. § 16224.
2.
Make Deposits:
(a)
In insured bank accounts. §16225(a).
29
V.
VI.
(b)
In financial institution run by trustee. §16225(b)
(c)
In checking accounts (not interest bearing). § 16225(e)
3.
Manage Stocks
(a)
Voting Rights. § 16234.
(b)
Payment of Sums against Securities. § 16235.
(c)
Sell or Convert Stocks. § 16236.
4.
Manage Securities
(a)
Hold Securities. § 16238.
(b)
Deposit Securities in Securities Depository. § 16239.
5.
Borrow Money. § 16241.
6.
Pay and Settle Claims. § 16242
7.
Pay Trust Expenses. § 16243
8.
Make Loans and Distributions to Beneficiary. § 16244, § 16245, §
16246
F.
Manage Property:
1.
Acquire, Dispose, Mortgage, Repair, Grant Option, Lease
(including mineral leases) and Manage Property, and Develop
Land § 16226, § 16227, § 16228, §16229, §16230, §16231,
§16232, §16233
G.
Insure the value of the Trust. § 16240
H.
Hire People. § 16247.
I.
Execute and Deliver Instruments. § 16248.
POUR-OVER TRUSTS
A.
Creation:
1.
Trust identified in testator’s will and its terms are set forth in a
written instrument (other than a will) executed before or
concurrently with the execution of the testator’s will or in the valid
last will of a person predeceasing the Testator. § 6300
B.
Distribution:
1.
Shall be administered according to provisions of the instrument or
will setting forth the terms of the trust. § 6300
C.
Lapse:
1.
If testator revokes or terminates the trust before his death, the trust
lapses. § 6300.
SPENDTHRIFT, SUPPORT & DISCRETIONARY TRUSTS
A.
Spendthrift trusts
1.
If the trust instrument provides that a beneficiary’s interest in
income/principal is not subject to voluntary or involuntary
transfer, then the beneficiary’s interest in income/principal under
the trust may not be transferred and is not subject to enforcement
of a money judgment until paid to the beneficiary. § 15300-01.
30
2.
VII.
Exceptions
(a)
If the settlor is the beneficiary, the restraint is invalid
against transferees or the settlor’s creditors. § 15304(a).
(b)
Creditors can reach the part of the trust income that exceeds
what’s necessary to support and educate the beneficiary. §
15307.
(c)
The court can order a trustee to make the beneficiary’s
child support or spousal support payments out of money
that would have been paid to the beneficiary. § 15305.
(d)
Restitution judgment. §15305.5
(e)
Liability for public support. §15306
B.
Support trusts
1.
If the trust instrument provides that the trustee shall pay no more
income or principal than is necessary for the education or support
of a beneficiary, then the beneficiary’s interest in income/principal
under the trust may not be transferred and is not subject to
enforcement of a money judgment until paid to the beneficiary. §
15302.
2.
Exceptions
(a)
If the Settlor is the Beneficiary: Creditors can reach the
amount of income/principal that can be paid to the
beneficiary. § 15304(a)-(b).
(b)
The court can order a trustee to make the beneficiary’s
child support payments out of money that would have been
paid to the beneficiary. § 15305.
(c)
Restitution judgment. §15305.5
(d)
Liability for public support. §15306
C.
Discretionary trusts
1.
If the trust instrument provides that it’s the trustee who determines,
in her discretion, what the beneficiary gets by way of income or
principal, then a transferee or creditor of the beneficiary may not
compel the trustee to pay the beneficiary anything. However, the
transferee or creditor can hold the trustee liable for any future
payments to the beneficiary by giving the trustee notice. § 15303.
2.
Exceptions
(a)
If the Settlor is the Beneficiary: Creditors can reach the
amount of income/principal that can be paid to the
beneficiary. § 15304(a)-(b).
(b)
The court can order a trustee to make the beneficiary’s
child support or spousal support payments out of money
that would have been paid to the beneficiary. § 15305.
MODIFICATION & TERMINATION
31
A.
B.
C.
Termination:
1.
21-yr. Limit: A trust for a noncharitable corporation or
unincorporated society or for a lawful noncharitable purpose may
be performed by the trustee for only 21 years. § 15211.
2.
A trust terminates when any of the following occurs:
(a)
The term of the trust expires. § 15407(a)(1)
(b)
Trust purpose is fulfilled. § 15407(a)(2)
(c)
Trust purpose becomes unlawful. § 15407(a)(3)
(d)
Trust purposes becomes impossible to fulfill. § 15407(a)(4)
(e)
Trust is revoked. § 15407(a)(5)
3.
Disposition of Property upon Termination: See § 15410.
4.
Trust Provisions Prohibiting Termination: Not applicable if
violates statutory rule against perpetuities. § 15413.
5.
Continuation after Perpetuities Period:
(a)
If a Trust continues notwithstanding after the RAP period,
it can terminate as follows:
(1)
On petition of majority of beneficiaries. § 15414(a)
(2)
On petition by Attorney General. § 15414(b)
Presumption of revocability: A trust can be revoked or modified by the
settlor, unless the trust provides otherwise. §§ 15400-02.
1.
Methods of Revocation:
(a)
writing (other than a will) signed by the settlor and
delivered to trustee during lifetime of settlor. § 15401(a)(2)
(b)
Attorney can’t modify/revoke unless expressly permitted in
trust instrument. § 15401(c)
2.
Method of Modification:
(a)
Same as method of revocation. § 15402.
Consent
1.
Beneficiaries
(a)
If all beneficiaries of an irrevocable trust consent, they may
compel modification or termination of the trust. §
15403(a).
(b)
Exceptions
(1)
The reason for modification/termination outweighs
the interest in accomplishing a material purpose of
the trust. § 15403(b).
(2)
The trust may not be terminated if the trust provides
that a beneficiary’s interest in income/principal is
not subject to voluntary or involuntary transfer. §
15403(b).
32
(c)
VIII.
IX.
Presumption of fertility rebuttable to close the class of
beneficiaries who consent is necessary. § 15406.
2.
Settlor and beneficiaries: If the settlor and all beneficiaries
consent, they may compel the modification or termination of the
trust. § 15404.
3.
Guardian ad litem: Can give consent for beneficiary who lacks
legal capacity. § 15405.
D.
Trust with uneconomically low principal, Trust with Changed
Circumstances: Court can decide to terminate, modify, or appoint new
trustee. § 15408, § 15409.
E.
Combination of Trusts: May combine if trusts substantially similar. §
15411.
F.
Division of Trusts: Court may decide to do this upon petition if the
purpose of trust not defeated. § 15412.
POWERS OF APPOINTMENT
A.
Terminology
1.
The person who creates the power of appointment is the donor of
the power.
2.
The person who holds the power is the donee.
3.
A general power is exercisable in favor of the donee, his estate, his
creditors, or the creditors of his estate. A general power permits
the donee to do most of the things an owner of the fee simple could
do.
4.
A special power is any power not classified as a general power
(e.g., the power to appoint among the issue of the donee).
B.
Ownership: To the extent that property owned by a donee is inadequate
to satisfy the claims of the donee’s creditors, property subject to a general
power of appointment that is presently exercisable is subject to the
creditors’ claims. § 682.
C.
Taxation issues
1.
The holder of a general power of appointment over income or
principal is treated as the owner of the property. The income from
the property is taxable to the donee.
2.
Property subject to a special power of appointment is not treated as
owned by the donee.
FUTURE INTERESTS
A.
Interests in the transferee
1.
A remainder is a future interest which can become possessory only
upon the natural expiration of a prior possessory interest, created
by the same instrument.
(a)
Vested remainders
33
(1)
X.
A remainder is vested if (1) no condition precedent
is attached to it, and (2) the person holding it has
already been born and his identity has been
ascertained.
(2)
A vested remainder subject to divestment contains a
provision that the remainder will be divested if a
condition subsequent happens.
(b)
Contingent remainders -- All remainders that are not vested
are contingent.
2.
An executory interest takes effect by divesting a prior interest
before that prior interest’s natural termination.
B.
Transferability and taxation
1.
Reversions, remainders, and executory interests are descendible
and devisable at death in the same manner as possessory interests.
2.
A future interest is subject to federal estate taxation.
RULE AGAINST PERPETUITIES
A.
The rule
1.
Common law: A future interest must vest, if at all, within 21
years of a life in being; otherwise, the interest is void ab initio.
2.
California statutory: A nonvested (i.e., contingent) property
interest created in a transferee is invalid unless:
(a)
When the interest is created, it is certain to vest or
terminate no later than 21 years after the death of an
individual then alive. § 21205(a).
(b)
Wait-and-See: The interest either vests or terminates within
90 years after its creation. § 21205(b).
3.
Validating Lives: They can’t be so numerous as to make evidence
of their deaths unreasonably difficult to obtain. § 21230.
B.
Class gifts
1.
A class gift vests when:
(a)
The class closes, and
(b)
all conditions precedent are resolved for each member of
the class.
2.
A class closes when:
(a)
it closes physiologically, or
(b)
any member of the class is entitled to possession of his
share.
C.
Creation of the interest
1.
will -- when the testator dies
2.
revocable trust -- when the trust becomes irrevocable (generally, at
the settlor’s death).
34
XI.
3.
irrevocable trust -- when the trust is created
D.
Reformation: An interested party can petition for a court to reform a
disposition in a manner that most closely approximates the transferor’s
intent and the plan of distribution is within 90 years (wait-and-see period).
§ 21220.
E.
Unborn widow N/A: The spouse of a validating life may serve as a
validating life as well. § 21231.
F.
Posthumous Births: Possibility that a kid will be born after an
individual’s death is disregarded. § 21208.
G.
Effect of invalid interest: If the RAP is violated, all valid interests
remain and all invalid interests are eliminated.
H.
Charitable trusts: Charitable trusts are exempt from the RAP.
ADMINISTRATION OF TRUSTS
A.
Duties of Trustee:
1.
Duty to administer Trust. § 16000, § 16001
2.
Duty of Loyalty:
(a)
Trustee has a duty to administer the trust solely in the
interest of the beneficiaries. § 16002.
(b)
No Conflicts of Interest. § 16004
(c)
Use of Reasonable Care. § 16040
(d)
Manage Investments Prudently. § 16047.
(e)
May Delegate Prudently. § 16052
3.
Duty to Keep Beneficiaries Reasonably Informed. § 16060
4.
Duty to Invest
(a)
Use Ordinary Care and Diligence. § 9600
(b)
Keep Cash in Interest-Bearing Accounts. § 9652
(c)
Permissible Investments (discussed in § 9730, §9731)
B.
Remedies for Breach of Duties
1.
Actions: Beneficiary and/or Cotrustee can bring an action to
compel, enjoin, or remove trustee, as well as other remedies listed
in § 16420.
2.
Hold Responsible for Loss/Depreciation (if they didn’t act in good
faith). § 16440.
3.
Hold Responsible for Interest (unless they acted in good faith). §
16441.
4.
Availability of Other Remedies. § 16442.
C.
Exculpation of Trustee:
1.
Can be relieved of liability for breach of trust by provisions in trust
instrument. § 16461(a).
(a)
Exceptions: If done w/gross negligence, or for the trustee’s
profit. § 16461(b).
35
2.
Revocable Trusts: Trustee not liable for not following any
instructions from the person holding the power to revoke. §
16462.
POLICY
XII.
Goals of Intestacy
A.
Look for best evidence of Decedent’s intent
B.
Administrative Ease
1.
want to know who will obtain the decedent’s property so they can
have clear title and do something with the property; and
2.
want the decedent to be able to die intestate knowing that the
statutory scheme parallels his/her desires
C.
Protect and Promote Family
1.
Giving other relationships a similar status “degrades” the family.
But we don’t want to punish people for their situation, especially
kids who had no choice about their birth.
(a)
Recognize adopted and illegitimate children, but make their
parents jump through hoops before granting them family
status.
XIII. Reasons for Creating Trusts
A.
Non-tax
1.
To ensure that a person’s basic needs are met during his lifetime,
should that person manage to squander his own assets.
2.
To ensure that the trust corpus go to the settlor’s heirs, not to the
beneficiary’s friends, relatives, etc. (a power of appointment would
defeat this aim).
3.
Avoiding delay and publicity (creating a testamentary trust would
defeat this aim).
B.
Tax
1.
Bypass/credit shelter trust: A trust that makes enough of the
decedent’s property subject to estate taxation so as to use up the
$675,000 exemption.
2.
Tax deferral (e.g., QTIP trust)
XIV. California Statutory Will – Advantages/ Disadvantages
A.
Advantages
1.
People who can’t afford a lawyer
2.
A simple alternative to intestacy: provides alternatives not
available under intestate succession. Such as the option of cash
gift, selection of executor, guardian, and trustee.
3.
Simple – for less educated people??
(a)
comprehensive and readily comprehensible
36
B.
C.
Disadvantages
1.
Mistake – if you make the mistake of choosing more than one
disposition of property, then the will fails. § 6224.
2.
Could adversely affect the legal profession (less use for lawyers)
3.
Can’t add or cross out words on the will (court may find invalid).
§ 6240, ¶ 9.
4.
Not designed to reduce taxes
5.
actually increases formalities (see differences section below)
6.
Not designed to create trusts
7.
Not designed to disinherit spouse, domestic partner, or
descendants. (see p. 291 for more)
Differences between Normal Wills
1.
Witnesses must sign the statutory form will only after the testator
signs (not so for normal wills – can sign before, after, etc.)
2.
Formalities required to execute statutory will much more stingent
than those for formal attested will
(a)
formal attested will may be executed by proxy signature as
long as proxy in presence of testator and at his direction.
Statutory will requires that “testator shall sign the will” –
no proxy option.
(1)
disabled/paralyzed person disadvantaged
w/statutory.
(2)
Note: proxy revocation allowed under statotory
will. This difference adds to confusion because of
inconsistencies.
(b)
Witness Presence – Under normal will, a testator doesn’t
need to sign in the presence of witnesses as long she
acknowledges signature or acknowledges document is the
will in the presence of witnesses. But Statutory Will
requires signing in the presence of witnesses.
(1)
Note: this makes the statutory will harder instead of
easier here.
(c)
Statutory will says “the testator shall complete tha
appropriate blanks.” Does this mean that a secretary typing
in the blanks wouldn’t count?
(1)
Note: this seems like sloppy drafting
(d)
Statutory will requires that witnesses “observe the testator’s
signing,” and that “all witnesses must watch you sign.”
This reverts to the old California “scope of vision” rule.
(1)
Too picky of a formality
37
(e)
3.
Strict requirement of invalidating the will if you make a
mistake in the property distribution section of the Statutory
Will.
Revocation and Amendment differences
(a)
Statutory: any additions/deletions from the will are
“ineffective and shall be disregarded.” This requirement
means the testator must take it or leave it – it can’t be
customized like the real will.
(1)
Problems: Can’t add/cross out stuff as a codicil on
the will, like you can with formal will.
38
INDEX
§ 103 .................................. 12
§ 15200 .............................. 29
§ 15201 .............................. 29
§ 15202 .............................. 30
§ 15203 .............................. 30
§ 15205 .............................. 30
§ 15206 .............................. 29
§ 15207 .............................. 29
§ 15208 .............................. 30
§ 15209 .............................. 30
§ 15211 .............................. 34
§ 15300 .............................. 32
§ 15302 .............................. 33
§ 15303 .............................. 33
§ 15304 ........................ 32, 33
§ 15305 .............................. 33
§ 15306 .............................. 33
§ 15307 .............................. 33
§ 15400 .............................. 34
§ 15401 .............................. 34
§ 15402 .............................. 34
§ 15403 ........................ 34, 35
§ 15404 .............................. 35
§ 15405 .............................. 35
§ 15406 .............................. 35
§ 15407 .............................. 34
§ 15408 .............................. 35
§ 15409 .............................. 35
§ 15410 .............................. 34
§ 15411 .............................. 35
§ 15412 .............................. 35
§ 15413 .............................. 34
§ 15414 .............................. 34
§ 16000 .............................. 37
§ 16001 .............................. 37
§ 16002 .............................. 37
§ 16004 .............................. 37
§ 16040 .............................. 37
§ 16047 .............................. 37
§ 16052 .............................. 37
§ 16060 .............................. 37
§ 16200 .............................. 31
§ 16220 .............................. 31
§ 16221 .............................. 31
§ 16222 .............................. 31
§ 16224 .............................. 31
§ 16225 .............................. 31
§ 16226 .............................. 32
§ 16227 .............................. 32
§ 16228 .............................. 32
§ 16229 .............................. 32
§ 16230 .............................. 32
§ 16231 .............................. 32
§ 16232 ..............................32
§ 16233 ..............................32
§ 16234 ..............................31
§ 16235 ..............................31
§ 16236 ..............................31
§ 16237 ..............................31
§ 16238 ..............................32
§ 16239 ..............................32
§ 16240 ..............................32
§ 16241 ..............................32
§ 16242 ..............................32
§ 16243 ..............................32
§ 16244 ..............................32
§ 16245 ..............................32
§ 16246 ..............................32
§ 16247 ..............................32
§ 16248 ..............................32
§ 16420 ..............................38
§ 16440 ..............................38
§ 16442 ..............................38
§ 16461 ..............................38
§ 16462 ..............................38
§ 21109 ..............................22
§ 21110 ..............................22
§ 21111 ........................ 22, 23
§ 21113 ..............................22
§ 21114 ..............................21
§ 21117 ........................ 22, 23
§ 21131 ..............................23
§ 21133 ..............................24
§ 21135 ..............................23
§ 21205 ..............................36
§ 21208 ..............................37
§ 21220 ..............................37
§ 21230 ..............................36
§ 21231 ..............................37
§ 21300 ..............................26
§ 21303 ..............................26
§ 21304 ..............................27
§ 21305 ..............................27
§ 21306 ..............................27
§ 21307 ..............................27
§ 21308 ..............................27
§ 21320 ..............................27
§ 21350 ..............................26
§ 21351 ..............................26
§ 21402 ..............................23
§ 21403 ..............................23
§ 21610 ........................ 15, 24
§ 21611 ..............................15
§ 21620 ........................ 16, 24
§ 21621 ........................ 16, 24
§ 21622 ..............................24
39
§ 21623 ..............................24
§ 21700 ........................27, 28
§ 223 ..................................12
§ 2-301 ...............................15
§ 240 ........................8, 21, 22
§ 245 ..................................21
§ 246 ..............................8, 21
§ 247 ..................................21
§ 250 ..................................13
§ 254 ..................................13
§ 275 ..................................14
§ 281 ..................................14
§ 282 ..................................14
§ 283 ..................................14
§ 44 ....................................21
§ 48 ....................................17
§ 50 ................................8, 22
§ 5302 ................................28
§ 6100 ................................16
§ 6101 ................................15
§ 6104 ..........................17, 24
§ 6110 ..........................16, 17
§ 6111 ..........................17, 21
§ 6112 ................................17
§ 6120 ................................19
§ 6121 ................................19
§ 6122 ................................19
§ 6123 ..........................19, 20
§ 6124 ................................19
§ 6130 ................................20
§ 6131 ................................20
§ 6220 ................................17
§ 6221 ................................18
§ 6224 ..........................18, 39
§ 6226 ................................18
§ 6227 ................................18
§ 6240 ..........................18, 39
§ 6300 ................................32
§ 6402 ..............................6, 9
§ 6403 ................................12
§ 6407 ................................10
§ 6409 ..........................12, 13
§ 6412 ................................14
§ 6450 ................................10
§ 6451 ................................11
§ 6452 ................................11
§ 6453 ..........................10, 11
§ 6454 ................................12
§ 6520 ................................14
§ 6540 ................................15
§ 6560 ................................15
§ 682 ..................................35
§ 8000 ................................25
§ 8001 ................................ 25
§ 8002 ................................ 25
§ 8004 ................................ 25
§ 8005 ................................ 25
§ 8006 ................................ 25
§ 8007 ................................ 25
§ 8220 ................................ 18
§ 8221 ................................ 19
§ 8460 ................................ 28
§ 8461 ................................ 28
§ 8465 ................................ 28
§ 8466 ................................ 28
§ 9600 ................................ 37
§ 9652 ................................ 37
§ 9730 ................................ 38
§ 9731 ................................ 38
§ Division ...................... 8, 35
§ predeceasing ............. 22, 32
§240 ................................. 7, 9
§247 ..................................... 8
§6402 ................................... 9
§6406 ................................... 9
16441 ................................. 38
abate .................................. 23
Abatement ........................ 23
acknowledges .. 11, 12, 23, 40
Acquire .............................. 32
Acts of independent
significance ................... 20
additions ............................ 31
Additions ........................... 18
Ademption ........................ 23
administer ................ 4, 25, 37
ADMINISTRATION . 28, 37
Administrative ................... 38
administrator ........................ 4
adopted ............ 11, 12, 24, 38
ADOPTING....................... 10
Adoption ........................... 11
Adoptive ............................ 11
advancement ............ 4, 12, 13
Advancement ............. 12, 13
Advantages ........................ 39
Affidavit ...................... 18, 19
affinity ................................. 4
afford ................................. 39
ambiguity ........................... 21
amends ............................... 20
ancestor.......................... 9, 21
ancestors .............................. 9
Ancestors ............................ 9
Ancestral Property ............... 9
Annulment ................... 18, 19
Antenuptial ........................ 14
anti-lapse ........................... 22
Anti-lapse .......................... 22
Appointment ......................28
APPOINTMENT .............35
ascendants .................... 4, 6, 9
Ascendants ...........................6
ascertainable ......................30
Assets.................................14
assignment .........................12
Attestation .........................18
attorney ..............................26
Attorney General ...............34
attorneys ...........................26
bank accounts ....................31
Beneficiaries ............... 34, 37
beneficiary .... 4, 5, 14, 17, 23,
25, 26, 27, 28, 29, 30, 32,
33, 35, 39
Beneficiary....... 30, 32, 33, 38
benefit .... 5, 13, 15, 28, 29, 30
bequest ...........................4, 26
BEQUEST ........................22
Bequests ............................26
blood ..............................4, 26
Borrow ...............................32
breach .......................... 28, 38
Breach ................................38
burned ................................19
Business .............................31
BY ............................... 10, 11
CA .................................7, 15
California Statutory Will
........................... 17, 18, 39
canceled .............................19
capacity ............ 13, 16, 17, 35
Capacity .............................17
charitable...........................30
Charitable................... 30, 37
child .... 10, 11, 12, 13, 17, 21,
24, 33
Children ...................... 11, 24
CHILDREN......................24
class ..... 22, 23, 30, 35, 36, 37
Class gifts.................... 22, 36
Classification ....................22
codicil ................ 4, 20, 21, 40
Codicils .............................20
cohabitant ..........................26
collaterals.........................4, 9
Collaterals ........................6, 9
Combination .....................35
Commercially ....................17
community property .7, 8, 12,
14, 15, 16
Community Property ...6, 7,
15
competency ........................25
Competency .......................25
40
competent .....................16, 19
compliance ..................17, 18
comprehensible ..................39
comprehensive ...................39
conclusive ....................13, 23
Conclusive .........................25
confidential ........................26
Confidential ......................26
Conflicts of Interest ...........37
consanguinity ...................4, 6
Consanguinity ..................... 9
Consent ........................31, 34
conservator ........................16
Consideration .....................30
CONSTRUCTION ...........20
constructive ..................28, 31
Constructive .....................31
contemporaneous ...12, 13, 23
contest .................... 24, 26, 27
Contest .................. 25, 26, 27
contested ......................18, 25
Contesting .........................25
CONTESTING.................24
Contingent remainders .......36
contract ............ 27, 28, 29, 30
contracts .....................27, 28
Contracts ...........................28
CONTRACTS ..................27
Contracts performable at
death ..............................28
corporation .........................34
corpus ......................5, 29, 39
Creation ......................32, 37
CREATION ................16, 29
creditor ................... 17, 28, 33
Creditor ..............................28
creditors ................. 14, 32, 35
Creditors ............................33
cross out .......................39, 40
crossed out .........................19
Curtesy..............................14
damages .............................28
date ........................ 17, 21, 27
Date....................................17
death ... 5, 6, 8, 10, 12, 13, 19,
20, 22, 23, 25, 28, 32, 36,
37
debts...............................4, 23
decedent .. 4, 5, 6, 7, 9, 10, 12,
13, 14, 15, 17, 24, 25, 27,
28, 39
Decedent .............. 7, 9, 10, 28
Declaration ........................29
Deletions ............................18
delusions ............................16
Demonstrative ....................22
dependent..................... 15, 19
Dependent Relative
Revocation ..................... 19
Deposition ......................... 18
Deposits ............................. 31
Depreciation ...................... 38
descendants ... 4, 6, 16, 21, 22,
39
Descendants ..................... 6, 8
descent ................................. 4
desire ................................. 29
desires ................................ 38
destroyed ........................... 19
devise ................. 4, 16, 17, 23
devisee ........................... 4, 17
Diligence ........................... 37
disabled.............................. 40
Disadvantages ................ 6, 39
disclaimer .................... 12, 14
Disclaimer......................... 14
Disclosure .......................... 14
discretion ..................... 15, 33
DISCRETIONARY ......... 32
Discretionary trusts ......... 33
disinherit ............................ 39
disinherits .......................... 15
Dispose .............................. 32
Disposition......................... 34
dissolution ......................... 19
distributee ............................ 4
distribution..................... 4, 37
Distribution .................... 8, 32
Divorce .............................. 18
domestic partner ................ 39
Domestic Partner ................. 7
domestic partnership .......... 19
donative ............................. 26
donee ................................. 35
Dower................................ 14
duplicate ............................ 19
Duplicates .......................... 19
Duress ................................ 25
Ease ................................... 38
educate .............................. 33
educated ............................. 39
education ..................... 30, 33
elect ................................... 14
Enforcement ...................... 26
equitable title ................. 5, 29
Escheat ................................ 6
estate . 4, 5, 7, 8, 9, 12, 13, 14,
15, 16, 17, 20, 23, 24, 25,
28, 35, 36, 39
evidence .... 12, 13, 18, 20, 21,
22, 26, 27, 28, 29, 36, 38
Exculpation ........................ 38
execution .. 15, 19, 20, 24, 26,
32
executor .........................4, 39
Executor .............................28
executory interest...............36
Exoneration ......................23
Expenses ............................32
Extrinsic ...........................21
Family ............. 14, 15, 16, 38
Family Allowance ...... 14, 15
fertility ...............................35
fiduciary.........................5, 29
Fiduciary ............................17
Forced Elective Share ........16
forgery ...............................27
Forgery ..............................27
form ................... 5, 18, 20, 31
formalities ....... 17, 18, 20, 39
Formalities............ 16, 25, 39
formality ............................40
forms ..................................17
foster ..................................12
Foster ................................12
fraud........... 14, 17, 24, 26, 31
Fraud ............................ 25, 26
FROM .......................... 10, 11
future interest ......... 22, 30, 36
FUTURE INTERESTS ...36
gift 4, 8, 12, 22, 23, 24, 36, 39
Gift........................... 6, 22, 23
gifts .............................. 22, 23
Gifts............................. 22, 24
good faith ...........................38
government .................. 30, 31
Government .......................31
grandparent ..........................9
guardian ....................... 13, 39
Guardian ad litem............35
Guardianship ...................13
halfbloods ............................9
Halfbloods ..........................9
hallucinations .....................16
handwriting .................. 17, 19
heir ......................... 12, 13, 24
Heir ....................................17
heirs ................... 4, 13, 21, 39
Hire ....................................32
holographic.................. 17, 20
Holographic ......................17
Homestead ........................14
homicide ............................12
Homicide...........................13
hope ...................................29
hotchpot .........................4, 13
Hotchpot ............................13
illegitimate .........................38
41
Illegitimate ........................11
income ............... 5, 32, 33, 35
inconsistencies ...................40
inconsistency .....................19
incorporated by reference ..20
Incorporation by reference
.......................................20
Independent Advice ...........14
Informed ............................37
inheritance .....................8, 10
Insure .................................32
integration .........................20
Integration ........................20
intent ... 14, 15, 18, 19, 20, 22,
24, 26, 27, 28, 29, 37, 38
Intent ............................29, 30
intentional ....................13, 24
intentionally ...........13, 15, 16
inter vivos .............. 15, 16, 28
Inter vivos ....................28, 29
Inter Vivos .......................... 6
Inter vivos revocable trusts 28
Interest .........................37, 38
interested party ..........25, 37
interested person ..........17, 25
interested witness ...............17
Interested witnesses .........17
Interpretation .....................27
intestacy .....................4, 6, 39
Intestacy .........................6, 38
INTESTACY ..................4, 6
intestate ..... 12, 13, 14, 15, 16,
17, 21, 22, 24, 38, 39
Intestate ....................7, 9, 28
INTESTATE ..................... 6
intestate succession .....12, 13,
14, 21, 39
invalid .. 17, 24, 32, 36, 37, 39
invalidity ............................27
Invest ...........................31, 37
Investments ..................37, 38
issue . 6, 7, 8, 9, 13, 21, 22, 35
Issue ...................... 7, 8, 9, 13
joint ........................ 12, 13, 28
Joint bank accounts ...........28
joint tenancy ......................12
Joint tenancy ......................28
joint tenant ............. 12, 13, 28
joint tenants .......................28
Kids ...............................7, 16
kin ..................................9, 21
Kin ...................................7, 9
kindred ...............................22
Land ...................................32
language .......................20, 25
Lapse..................................32
LAPSE .............................. 22
latent .................................. 21
lawyer ................................ 39
lawyers .............................. 39
Lawyers ............................. 14
Lease.................................. 32
legacy .............................. 4, 5
legal profession.................. 39
legatee............................ 5, 23
liability .............................. 38
Liability ............................. 33
Life insurance ...................... 6
LIMITATIONS ............... 14
lineal .............................. 4, 22
Lineal .................................. 8
livelihood .......................... 15
Loans ................................. 32
Lost .................................... 19
Loyalty .............................. 37
Manage .................. 31, 32, 37
marriage ......... 4, 8, 10, 19, 26
Massachusetts .................... 7
Menace .............................. 25
mental ................................ 16
mentally ............................. 16
merger ............................... 30
minor ................................. 13
minority ....................... 12, 14
minors ................................ 14
misrepresentation ............... 26
mistake ...... 18, 20, 31, 39, 40
Mistake ........................ 25, 39
Modern Elective Share .... 14
Modern Family .................. 9
modification................. 34, 35
Modification ...................... 34
MODIFICATION ............ 33
Money.......................... 31, 32
Mortgage ........................... 32
municipal ........................... 30
mutual .......................... 28, 31
NATURAL ........................ 10
Naturaldad ................... 10, 11
naturalmom ........................ 10
Naturalmom ....................... 10
no-contest .......................... 27
Nominee ............................ 28
noncharitable ..................... 34
Non-Marital ..................... 11
non-relatives ...................... 23
obliterated .......................... 19
observe .............................. 40
Omission............................ 17
omitted ............................... 16
Omitted ............................. 15
operation of law........... 19, 30
Option ................................32
oral .................................5, 29
Oral ....................................29
orally .................................29
original...............................19
Ownership ........................35
paralyzed ...........................40
parent .. 7, 8, 9, 10, 11, 12, 13,
24
Parent ................. 7, 9, 10, 11
Parent/Child Relationship
.......................................10
parents ............. 4, 8, 9, 10, 11
paternity .............................10
pay on death accounts ..........6
per capita at each generation
.......................................21
Per Capita at Each
Generation .......................8
per capita w/representation ..9
per capita with representation
.......................................21
per stirpes ..........................21
Per Stirpes...... 8, See Right of
Representation
Perpetuities ........................34
personal rep .........................4
personal representative 25, 28
Personal Representative ....25,
28
petition ............. 25, 34, 35, 37
Petition...............................25
physical act ........................19
POLICY ...........................38
possession ........ 13, 19, 23, 37
Posthumous ......................37
post-it .................................20
POUR-OVER ...................32
poverty ...............................30
power of appointment .29, 35,
39
Powers ...............................31
POWERS .................... 31, 35
Precatory ............................29
predeceased........ 9, 12, 13, 14
Premarital ........................15
Prenuptial...........................14
present interest ..................22
presumption ................. 17, 26
Presumption ............... 34, 35
Pretermitted ............... 16, 24
principal ............. 5, 32, 33, 35
printed ................................17
pro rata ...............................23
probate 4, 5, 6, 14, 15, 18, 24,
25
42
Probate ...........................6, 25
Problems ............................18
Proof..................................18
Protect ................................38
Protection ...................14, 16
proxy ..................................40
proxy signature ..................40
public ..................... 14, 30, 33
Purge ..................................17
purpose ...... 19, 26, 30, 34, 35
real property ..................4, 29
Real Property .....................29
Reasonable Care ................37
recommendation ................29
Reformation .....................37
remainder ..........................36
remarried............................15
remedies .............................38
Remedies ...........................38
Repair ................................32
republishes .........................21
residuary ............................22
Residuary ...........................23
Restitution ..........................33
Resulting ...........................30
revalidates ..........................21
Revival ..............................20
revocability .......................34
revocation ..........................40
Revocation 18, 19, 20, 24, 25,
27, 32, 34, 40
revoke ........ 19, 20, 26, 34, 38
right of representation .......21
Right of Representation ...... 8
rule against perpetuities ... 34,
37
RULE AGAINST
PERPETUITIES ..........36
Rule of Convenience .........22
Sale ..................................... 6
satisfaction .........................23
Securities .....................31, 32
separate property............7, 15
Separate property ............... 8
Separate Property ........7, 15
separation ...........................19
settlor .... 5, 28, 29, 30, 32, 34,
35, 37, 39
Settlor..........................33, 35
siblings ................................ 6
sign ........................ 17, 39, 40
signature ................ 17, 19, 40
signed .. 15, 16, 18, 26, 27, 29,
34
signing .........................16, 18
Simultaneous ....................12
Simultaneous death ............ 12
specific ...... 21, 23, 24, 28, 30
specific terms.................... 21
SPENDTHRIFT............... 32
Spendthrift trusts ............ 32
spouse . 7, 8, 9, 11, 12, 14, 15,
17, 18, 22, 24, 37, 39
Spouse .. 6, 7, 8, 9, 14, 15, 16,
24, 28
SPOUSE ........................... 24
statute ...................... 6, 22, 31
Statute of Limitations ........ 27
statutory .... 14, 18, 20, 34, 36,
38, 39, 40
Statutory ...... 6, 17, 18, 39, 40
statutory form will ............. 39
Statutory will ..................... 40
Statutory Will .............. 18, 40
stepparent ......................... 12
Stocks ................................ 31
subscribing............. 17, 18, 19
Subscribing ........................ 18
subsequent ............. 19, 20, 36
supplements ....................... 20
support ......................... 11, 33
SUPPORT ........................ 32
Support trusts .................. 33
susceptible ......................... 25
tax ................................ 14, 38
taxable ............................... 35
taxation ....................... 36, 39
Taxation............................ 35
taxes ............................. 14, 39
terminated ..........................35
termination ............. 34, 35, 36
Termination......................34
TERMINATION..............33
testamentary .... 15, 16, 17, 18,
23, 24, 39
Testamentary Capacity ......25
Testamentary Intent ...........25
testator .. 5, 15, 16, 17, 18, 19,
20, 22, 23, 24, 25, 26, 28,
32, 37, 39, 40
Testator .................. 17, 18, 32
THROUGH.................. 10, 11
title ............... 5, 28, 29, 31, 38
Tolled.................................27
torn.....................................19
transfer .. 5, 14, 21, 22, 23, 26,
27, 32, 35
transferee ......... 22, 26, 33, 36
transferor ......... 21, 22, 26, 37
Transfers .................... 22, 23
translation ..........................25
trust . 5, 17, 23, 28, 29, 30, 31,
32, 33, 34, 35, 37, 38, 39
Trust........... 30, 32, 34, 35, 37
trustee ... 5, 29, 30, 31, 33, 34,
35, 38, 39
Trustee ................... 30, 37, 38
TRUSTEE ........................31
trusts .... 21, 22, 35, 37, 38, 39
Trusts ....................... 6, 35, 38
TRUSTS ..... 1, 28, 29, 32, 37
Unborn ........................ 10, 37
43
undue influence 17, 24, 25, 26
Undue influence ...............25
Undue Influence ................25
unlawful .............................34
UPC ...............................8, 15
UPC § 2-101....................... 8
validating ...........................37
Validating .........................36
Valuation ...........................13
valued ..........................13, 23
Vested remainders ..............36
Wait-and-See .....................36
waiver ................................15
Waiver ........................14, 25
wedlock..............................11
wholebloods ........................ 9
widow ..........................14, 37
will 4, 5, 6, 12, 13, 15, 16, 17,
18, 19, 20, 21, 23, 24, 25,
26, 27, 29, 30, 32, 34, 36,
37, 39, 40
Will . 6, 15, 16, 18, 19, 25, 26,
27, 28
WILL ... 4, 16, 20, 22, 24, 27,
28
wish....................................29
witness ................... 17, 18, 19
Witness ........................18, 40
witnessed ................ 16, 20, 27
witnesses ................ 17, 19, 40
writing. 12, 13, 16, 19, 20, 23,
29, 34