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Flashcards in Estate Deck (230)
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1

Heirs

People who inherit under state intestacy laws

2

Legatees

People who inherirt under a valid will.

3

Abatement

Reduction of the estate

4

Ademption

Extinguishment of a right (e.g. someone bequeaths something they don't have and the donee does not receive it)

5

Donor

Person who makes a gift

6

Donee

Person who receives a gift

7

Effective transfers

Transfers that meet the decedent's goals and wishes.

8

Efficient transfers

  • Maximize amount received by beneficiaries. Minimize transfer costs.

9

Liquidity at death

  • one goal of estate planning is liquidity to pay for - funeral, taxes, living costs, medical.

10

Unauthorized practice of law

  • certain activities reserved for licensed attornies - drafting legal documents, etc.
  • Refer client to licensed atty

11

Wills

  • Legal document that provides the testator to control the distribution of property at the time of death
  • Avoids state intestacy laws.
  • May be revoked or amended at any time as long as testator has legal capacity.
  • effective only upon death of testator

12

Intestacy

  • legal distribution scheme provided by state legislature
  • the state of dying with no will, an invalid will (if it has writing on it), or an incomplete will (that does not dispose of all property)
  • A decedent with a will is "testate"

13

Advantages of properly prepared will

  • allow for full unlimited marital deduction
  • cannot leave to charity of intestate
  • provides for disinheritance
  • can minimize estate tax
  •  

14

Holographic wills

  • written in testator's handwriting
  • signed and dated by testator
  • no witnesses required

15

Noncupative will

  • oral declaration in front of sufficient witnesses
  • not valid in all states

16

Statutory wills

  • drawn by a licenses atty and comply with laws in domicilary state of residence

17

Mutual wills/Sweetheart wills

  • identical wills leaving all assets to other person
  • not binding on surviving party to keep will the same after death of first spouse.

18

Joint will

  • Will of 2 people
  • Bind 2nd to die person based on join decisions of couple.

19

Legal capacity to make will

  • Sound mind
  • must be able to understand what is being done by writing of will
  • must be able to recognize and recollect assets.
  • "sound mind" is more liberal than other requirements for capacity.

20

Introductory clause

  • name, state of residence, etc.

21

Declaration clause

  • this is my last will and testatement
  • revocation of previous wills.

22

Bequest clause

  • directs specific property to legatees.

23

Residuary clause

  • distributed remainder of estate.

24

Executor/executrix clause

  • identifies executor and successor executor

25

Guardianship clause

  • identifies guardian of assets or minors

26

Clause directing payments of debts and taxes

  • can direct paid from estate or others

27

Attestation clause

  • provision signed by the witnesses as authentication of testator's will

28

Self-proving clause

  • declaration signed by notary that he/she witnessed the witnesses and testator signing the will (witnesses so not have to be found)

29

Simultaneous death clause

presumption regarding which individual died first in the event that both individuals die at once.

Presumes one person died first.

30

Survivorship clause

  • Requires any beneficiary to survive the decedent for a specified period of time before inheriting.