Chapter 26 - Estates and trusts. After reading the material in this chapter, you should be able to: List and explain requirements for a valid will, changes, and revocation; identify tools for future disability; explain intestacy (no will); describe estate administration; detail formation & administration of trusts, including revocation. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 5 Personal Property and Bailments Real Property Landlord and Tenant Estates and Trusts Insurance Law Property P A R T Estates and Trusts P A E T R H C 26 When you have told anyone that you have left him a legacy, the only decent thing is to die at once. Samuel Butler Learning Objectives List and explain requirements for a valid will, changes, and revocation Identify tools for future disability Explain intestacy (no will) Describe estate administration Detail formation & administration of trusts, including revocation Each state has statutes and case law that regulates the distribution of property upon a person’s death Uniform Probate Code, a comprehensive model law, enacted in 16 states A person’s estate is all property owned by that person and estate planning refers to the process of planning for the transfer of a person’s estate in later life and at death Overview A will is a document . | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 5 Personal Property and Bailments Real Property Landlord and Tenant Estates and Trusts Insurance Law Property P A R T Estates and Trusts P A E T R H C 26 When you have told anyone that you have left him a legacy, the only decent thing is to die at once. Samuel Butler Learning Objectives List and explain requirements for a valid will, changes, and revocation Identify tools for future disability Explain intestacy (no will) Describe estate administration Detail formation & administration of trusts, including revocation Each state has statutes and case law that regulates the distribution of property upon a person’s death Uniform Probate Code, a comprehensive model law, enacted in 16 states A person’s estate is all property owned by that person and estate planning refers to the process of planning for the transfer of a person’s estate in later life and at death Overview A will is a document executed with specific legal formalities by a testator (person making will) that bears instructions about the way the person’s property will transfer at death A will can direct only property owned by the testator at the time of the testator’s death The Will A bequest (also called legacy) is a gift of personal property or money Ademption: a specific bequest of property that is ineffective since the testator disposed of the property before death A devise is a gift of real property The residuary is balance of the estate left after specific devises and bequests have been made Will Terminology A person’s issue are his lineal descendants Includes adopted children Per capita: each member of a specified group will share equally in the property Per stirpes (also, by right of representation): each surviving descendant divides the share that his or her parent would have taken if the parent had survived Testamentary capacity (sound mind, legal age) Standard for mental capacity is fairly low
