Term
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Definition
| Disinheriting someone, cuts people out of intestate succsesion |
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Term
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Definition
| Doesn't matter, regardless of marital status |
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Term
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Definition
| Shares got down to descendants before they go up |
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Term
| Assignment of Excpetation |
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Definition
| Example: if you have a wealthy father, you expect a large inheritance. If there is sufficient consideration its good. If you die or are disinherited the creditor gets nothing |
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Term
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Definition
| can be liable if face of instrument is frustrated by faulty drafting, if face is ok then no extrinsic evidence |
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Term
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Definition
| Spouse can waive their rights to their share by written agreement, must be fully and fairly stated. Example: antenuptual agreements |
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Term
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Definition
| Instrument/Declaration which one directs their disposition of property after their death |
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Term
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Definition
| An amendment to a will, changes the date of the will |
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Term
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Definition
| Will only intended to operate on the occurrence of an event, if the the event doesn't occur the will isn't valid |
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Term
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Definition
| Can be proven by extrinsic evidence to establish mistake and correct it |
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Term
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Definition
| If testator accurately described property or beneficiary, the court takes it as its written and doesn't apply extrinsic evidence |
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Term
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Definition
| Apparent on the face of the will, no extrinsic evidence allowed |
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Term
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Definition
| Not apparent on the face of the will, extrinsic evidence allowed |
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Term
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Definition
| Provision punishing you for contesting a will, not enforceable if they have probably cause |
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Term
| Settlement of Will Contests |
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Definition
| To be effective all devisees must agree |
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Term
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Definition
| Presumed to be destroyed by testator because it can't be found. Burden to overcome is clear and convincing evidence that 1) will was properly executed 2) why it can't be found 3) witness testimony as to its contents |
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Term
| Doctrine of Dependent Revocation |
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Definition
| Client revokes will based on a mistake of material fact, the previous will is then upheld by the courts (courts don't want people to die intestate) |
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Term
| Revival of a Wholly Revoked Will |
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Definition
| Can be revived depending on the surrounding circumstances of the revocation or the testators current/previous declarations that the previous will should take effect as it was written |
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Term
| Revival of a Partially Revoked Will |
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Definition
| Previous will is revived, unless evident from the 2nd will or testators current/past declaration that they didn't want it revived |
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Term
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Definition
| Changes the date of the will, rebutted with evidence that the testator intended otherwise |
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Term
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Definition
| Tangible property that can be identified |
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Term
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Definition
| Quantity or type of property payable out of the estates assets (typically money) |
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Term
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Definition
| Quantity or type of property satisfied from a specific fund/account |
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Term
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Definition
| What's left over in the estate |
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Term
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Definition
| When there isn't enough in the estate to go around, order you first pay debts first take from 1) property not in will 2) residuary devise 3) general devise 4) specific devise |
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Term
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Definition
| K to include someone in a will 1) in writing 2) express reference in the will of the K and extrinsic evidence proving terms 3) signed |
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Term
| Execution of Joint/Mutual Wills |
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Definition
| Doesn't create a presumption of a K not to revoke the will or wills |
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Term
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Definition
| All of the writings that constitute a will, best done by binding i.e. staple, and continuing language from page to page |
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Term
| Incorporation by Reference |
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Definition
| Incorporating the document in a will that isn't actually included in a will 1) must be in writing 2) be in existence at the time of the will 3) must reference specifically in the will 4) manifest the intent to incorporate |
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Term
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Definition
| Outside of the will, 1) must refer to handwritten list in will 2) can be prepared after the will 3) only tangible personal property (no money) 4) can't have been disposed of by will |
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Term
| Facts/Events of Independent Signifigance |
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Definition
| Incorporation by reference based upon facts that have an effect on the disposition of the will |
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Term
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Definition
| Ceasing to be a testamentary gift because its no longer part of the estate 1) Ademption by Extinction: get the replace property or its value, unless the testator intended to adeem 2) Ademption by Satisfaction: item substituted because you received something as an inter vivos gift (need satisfaction) |
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Term
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Definition
| A specific devise passes subject to any mortgages or security interests, thus the testator can exonerate the devisee so they don't take subject to |
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Term
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Definition
| Termination of testamentary gift because someone has refused it or predeceased the testator |
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Term
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Definition
| Saves lapsed gift and gives it to someone else |
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Term
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Definition
| Physically impossible for more members to be added. Example: "to all my nieces and nephews if by siblings pass away before me" |
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Term
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Definition
| The class will close if at least one member of the class can take (i.e. must be born before the testator dies) |
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Term
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Definition
| Fiduciary relationship in respect to property in which one person has legal title to the benefit of another person, with specific duties attaching to the matter in which the trustee deals with the property |
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Term
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Definition
| Will naming the residuary the trust, thus everything "pours" over fro the estate into the trust |
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Term
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Definition
| When the settler retains so much control its as if there hasn't been a transfer |
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Term
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Definition
| Keeps creditors away, prevents transfers, and can limit the dispersal to the beneficiaries |
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Term
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Definition
| Trustee has discretion over the assets of the dispersal to the beneficiaries |
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Term
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Definition
| Pays for the beneficiaries medical/health care |
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Term
| Discretionary Support Trust |
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Definition
| Trustee has the discretion over the assets used for for the beneficiary in their health/medical care |
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Term
| Rule Against Perpetuities |
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Definition
| Prohibits creation of a future interest that may or may not vest, beyond the lives in being, at the time of creation, plus 21 years |
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Term
| Unified Credit (lifetime credit) |
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Definition
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Term
| Gift Tax Annual Exclusion |
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Definition
| $12k a year to a present interest, husband and wife can split it and thus exclude $24k a year |
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Term
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Definition
| All property decedent had domain and control over. Excludes: trusts, life insurance, IRAs, 401ks, jointly owned property, dividends declared |
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Term
| What is a Deductible for Estate Tax |
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Definition
| 1) cost of administration 2) funeral expenses 3) attorney fees 4) trustee fees 5) interest on loans taken by trust 6) money expended to protect |
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Term
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Definition
| Unlimited amount of property because you are only taxed once as a marital unit. Must 1) spouse survive decedent 2) surviving spouse must be a U.S. citizen 3) value deducted must be included in spouses estate upon their death 4) interest must pass from decedent to surviving spouse 5) interest can't be non deductible terminable interest |
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Term
Credit Shelter Trust (AB Trust)
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Definition
| Maximizes use of each spouses unified credit and unlimited marital deduction |
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Term
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Definition
| Takes care of the body, court appointed |
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Term
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Definition
| Takes care of the money, court appointed |
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Term
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Definition
| Takes care of body/money, except client appoints instead of the court |
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Term
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Definition
| Essentially instruction if you become incapacitated, what you want to be done to you. Not binding in MI, but strong evidence for the court |
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Term
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Definition
| Automatic at 65 or with a proven disability, pays for acute and rehabilitative care |
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Term
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Definition
| Requires financial qualification, pays for the indigent and long term care |
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Term
| Medicaid Non-Countable Assets |
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Definition
| 1) residence up to $500k in equity 2) 1 automobile 3) personal effects/household goods 4) irrevocable funeral contracts 5) limited case value in life insurance |
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Term
| Medicaid Countable Assets |
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Definition
| 1) bank accounts 2) IRA/401k 3) stocks/bonds/mutual funds 4) cottages/RVs 5) investment annuities |
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Term
| Medicaid Married Couple Protection |
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Definition
| 1/2 of couples countable assets, but must be between $21,912 and $109,560 |
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Term
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Definition
| Asset conversion, taking countable assets and investing them in non-countable assets |
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Term
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Definition
| Selling countable assets for less than FMV. Penalty: medicaid won't pay for that length of time because you could have |
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