Hypos Flashcards
(99 cards)
1
Q
T, a widow, has three children, A, B and C. In 2006, T makes a $100,000 gift to A. T does not memorialize the gift in writing. In 2007, T dies intestate survived by A, B, and C. T’s net probate estate is valued at $900,000. Who inherits T’s estate:
A
- UPC and Tenn. Code - $300,000 per child, at common law the 100,000 would be considered an advancement.
2
Q
T, a widow, has three children, A, B and C. In 2006, T makes a $100,000 gift to A. T requires A to sign a writing that provides: “This $100,000 gift is intended to be part of A’s inheritance.” In 2007, T dies intestate survived by A, B, and C. T’s net probate estate is valued at $800,000. Who inherits T’s estate:
A
- UPC and Tenn. Code this would be considered an advancement
3
Q
T, a widow, has three children, A, B and C. In 2006, T makes a $500,000 gift to A. T requires A to sign a writing that provides: “This $500,000 gift is intended to be part of A’s inheritance.” In 2007, T dies intestate survived by A, B, and C. T’s net probate estate is valued at $800,000. Who inherits T’s estate:
A
- UPC and Tenn. – A only gets the $500,000 since the shares are less after hotchpot. The other siblings get 400.
4
Q
P dies intestate, survived by a child, A, and a sister, X. Six months later, A is convicted of first degree murder in the death of P.
Who inherits P’s estate under TN law?
A
- Only X inherits
5
Q
Assume at P’s death, A and P owned Blackacre as joint tenants with right of survivorship. What happens to Blackacre at P’s death under Tennessee law (majority view)?
A
- A still keeps his half because he’s a tenant in common. There is a minority view in N.C. They call it a severance event…they take A’s half and turn it into a life estate which then goes to P after a delay.
6
Q
P dies intestate, survived by a child, A, and a sister, X. Six months later, A is convicted of first degree murder in the death of P. A has a child, C. Who inherits P’s estate under TN law?
A
- Tennessee treats the slayer as those he has disclaimed so C would take the child. A majority of jurisdictions aren’t going to punish the descendant.
7
Q
A, a widower, dies intestate with a large estate. A is survived by one child, C. C has three children, X, Y, and Z. C, who is elderly and wealthy, would prefer that X, Y, and Z inherit A’s estate. What would you advise C to do?
A
- C should disclaim it. You’re now treated as if you predeceased your children. You can even disclaim a portion of it.
8
Q
A, a widower, dies intestate with a large estate. A is survived by one child, C. C has three children, X, Y, and Z. C, who is poor, is concerned that if he inherits A’s estate he (C) will be ineligible for Medicaid benefits. Thus, C would prefer that X, Y, and Z inherit A’s estate. What would you advise C to do?
A
- In most cases this is considered fraud…this could be a crime if someone wanted to push it. Be very careful with Medicaid…not to be confused with Medicare for old people.
9
Q
A dies intestate with a net probate estate of $400,000. A is survived by one child, C. C has three children, X, Y, and Z. C owes $500,000 to the IRS. C would prefer that X, Y, and Z inherit A’s estate. What would you advise C to do?
A
- IRS, by the supremacy clause, you cannot disclaim to avoid federal income tax. Fed Income tax and Medicaid are the only two problem areas…otherwise you can disclaim to save $
10
Q
A dies intestate. A was survived by B, her husband, and C, their child. At death, A and B owned Blackacre as “tenants by the entirety.” A and B acquired Blackacre ten years before A’s death. One month after A’s death, B disclaims all his interest in A’s intestate estate and the portion of Blackacre he acquired at A’s death. Are B’s disclaimers valid?
A
- You can disclaim the other share of a joint tenancy if your wife passes and you don’t want her half. But what about tenants by the entirety – this causes a lot of problems at common law because that position is that you can’t disclaim any of it. But the UPC and the IRS say you can disclaim the portion that you get through survivorship or the share of whatever the other joint tenant put toward the home.
11
Q
A dies intestate. His closest heirs are his two brothers, B and C. B is a citizen of and resides in Germany. C is a citizen of Germany but resides in the United States as an undocumented alien. Who inherits A’s estate?
A
- Neither will be disqualified.
12
Q
In 1975, H and W are married. In 2006, W files for divorce. One week before the divorce is final, H dies intestate survived by W and X (H’s brother). Who inherits H’s estate?
A
- W inherits. It all turns on whether the decree has been signed. Divorce only effects wills, estates, and trusts…not stuff like life insurance. You’d better change your beneficiary.
13
Q
Father made an inter vivos gift to Daughter of $25,000. Father died intestate survived only by Daughter and Son with a distributable estate of $75,000. If Son receives $50,000 from Father’s estate, which one of the following would be the most likely explanation?
A. Father’s gift to Daughter was a satisfaction.
B. Father’s gift to Daughter was an advancement.
C. Daughter executed a valid disclaimer of her entire intestate share.
D. Daughter murdered Father.
A
Answer: B.
14
Q
John and Beth were married for many years. During the course of their marriage, a son, Clay, was born. Clay was the only child John ever had. Although he had no rational basis for his suspicions, John believed that Clay was conceived as the result of a relationship between Beth and another man. Although Beth denied this, John persisted in his belief. Several DNA tests showed that Clay was John’s son. Beth died when Clay was four. When Clay was six, John executed a will that read as follows:
– My wife has betrayed me. She gave birth to a child by another man. The child is not mine, although I have provided a home for him. I therefore disinherit Clay. I leave everything to my aunt, Matilda.
/s/ John
John died without changing his belief or the will. Should the will be admitted to probate?
A. No, if John was suffering from an insane delusion.
B. Yes, if the will was validly executed.
C. No, because John had been unduly influenced in his beliefs.
D. Yes, because John has an absolute right to disinherit his son.
A
Answer: (A) No, if John was suffering from an insane delusion.
There wasn’t evidence that supported mental capacity. This rarely happens.
15
Q
H, age 90, is a widower with no descendants. His closest relative is a brother, B. B is living overseas and has had no contact with H for several years. In 2007, H receives word from Y, a friend, that B has died; as it turns out, Y was mistaken. In 2008, H executes a will leaving all his property to X, a friend. H tells the attorney that he (H) “is leaving nothing to B because B is dead.” H dies in 2009, survived by X and B (who had been very ill but recovered). Who inherits H’s property?
A
- X - This is a will that is based on a mistake. Mistakes of testators cannot be corrected. Why? Think about it. What happens if we start fixing wills? People start saying, “you know what Dad meant for me to have that. Fix it.”
16
Q
H, age 90, is a widower with one child, C. C lives next door to H, and H sees C everyday. In 2007, H receives word from Y, a friend, that C has died. It turns out, however, that C is not dead. H sees and talks to C everyday, but H nevertheless continues to believe that C is dead. In 2008, H executes a will leaving all his property to X, a friend. H tells the attorney that he (H) “is leaving nothing to C because C is dead.” H dies in 2009, survived by X and C. Who inherits H’s property?
A
- C, Insane Delusion
17
Q
T records a will on DVD. Two witnesses (A and B) were present at all times on the DVD. According to the DVD will, T left all of his real property to X, a friend. At T’s death, the DVD is located, but no written will is found. T is survived by A, B, X, and F (T’s niece and closest heir). Who inherits T’s property?
A
- The U.S. opinion is that this does not qualify as a writing. The writing requirement is one they’re not going to show a lot of leeway in.
18
Q
- In 2006, T executes a will with A (T’s son) and B (a friend) as witnesses. The will leaves all of T’s property to A. In 2007, T dies, survived by A, B, and C (T’s daughter). Who inherits T’s property under TN law:
A
A ½ C ½
19
Q
- In 2005, T executes a will with A (a friend) and B (a friend) as witnesses. The 2005 will leaves all of T’s property to X (a friend). In 2006, T executes a new will with X and C (a friend) as witnesses. The 2006 will leaves $10,000 to B and the remainder of T’s property to X. In 2007, T dies, survived by A, B, C, X, and D (T’s son and sole heir). Who inherits T’s property under TN law
A
D
20
Q
Frank wants his family to clearly understand why his estate plan leaves some of them out. He makes a video of himself using a webcam that will explain it all. He dies two years later. After his death, the video was found on his computer but no will was found. In the video, Frank appears to be reading from a set of note cards. He announces that he is of sound mind and intends for the video to serve as a recording of his testamentary intent. He then says: “To my oldest daughter, Fran, I give nothing, because she has had the bad sense to hang out with people who take advantage of her. To my next daughter, Claire, I give the sum of $2 million, but she must use it to do good in the world, as I know she will. To my son, Victor, I leave enough money to fly home for my funeral. Finally, to my wife, who I doubt has ever been faithful to me, I leave one year’s allowance of $250,000, which should give her enough time to find another sucker. If I have anything left over, I give it to the American Red Cross.” The Red Cross wants to know whether it can collect the legacy under Tennessee law.
A) The Red Cross can collect because the video qualifies as a holographic will.
B) The Red Cross can collect because the video qualifies as a nuncupative will.
C) The Red Cross can collect because Tennessee has adopted a harmless error statute.
D) The Red Cross is unlikely to be able to collect.
A
D
21
Q
A and B are involved in an auto accident in which A dies. Prior to death, A had validly executed a formal will in which A left all of her property to her son, X. A, who was domiciled in TN at the time of death, was survived by X and Y (A’s daughter). Six months after A’s death, a wrongful death law suit is filed on behalf of A (against B) in TN state court, which is ultimately settled for $1 million. How will the $1 million be distributed?
A
- Wrongful death proceeds are distributed … x gets half and y gets ½
22
Q
A dies in 2012; at the time of death, A was a resident of Tennessee. A executed a will in 2010. The typewritten will was signed by A and was notarized. However, it was not signed by any witnesses other than the notary. A’s 2010 will leaves all her property to X, a friend. A was survived by X and Z (her cousin and closest relative). How will A’s estate be distributed?
A
- Z gets the property…typewritten will and one witness
23
Q
A. In 2006, T prepares a typewritten “will” that contains an express revocation clause. T signs the will, but no witnesses sign it. Does the 2006 “will” revoke T’s prior (1998) attested will?
A
No, it needs to be witnessed
24
Q
- In 2003, T validly executes a will. In 2005, T writes a large “X” on each page of the will. Is the will revoked?
A
Yes
25
4. In 2003, T validly executes a will. In 2005, T throws the will into the fireplace with the intent to revoke it. The will, however, was not destroyed, but merely charred on the right margin. The charring did not touch any of the words of the will. Is the will revoked?
No. Must be material.
26
5. In 2003, T validly executes a will. T dies in 2005. The will is found in T’s safe after T’s death, but T’s signature is cut off. Is the will revoked?
Yes
27
1. In 2003, T validly executes a will. In 2005, T accidentally cuts the will in half. Upon discovering the mistake, T tapes the will back together. Has the will been revoked?
- The physical act must be concurrent with the intent.
28
1. T validly executes a will in 2001 leaving all of his property to A. In 2006, at a time when T lacked the capacity to execute a will, T deliberately destroys the 2001 will. In 2007, T dies survived by A and B (T’s sole heir). Who inherits T’s property?
It hasn't been revoked
29
T wishes to revoke her will. She directs Mark, who is in her presence, to write an X on each page of a photocopy of her will and to make certain that the X touches the words of the will. Mark follows T’s instructions. Is the will revoked?
no
30
T, who is confined to a hospital bed, wishes to revoke her will. The will is located in T’s safe-deposit box at First National Bank. T directs her brother, Mark, to go to FNB and destroy the will. Mark follows T’s instructions to the letter and then telephones T informing her that the will has been destroyed. Was the will revoked?
no
31
1. In 2005, T duly executed a typewritten will (the “2005 will”). The will was signed by T and three competent witnesses. The pertinent provisions of the 2005 will provided:
– “I, T, declare this to be my last will and hereby revoke all prior wills and codicils.
– 1. I leave $5,000 to my friend, Alice.
– 2. I leave the rest of my estate to my nephew, Bob.”
T died on May 1, 2006. T was survived by Alice and Bob (T’s only heir). When T’s 2005 will was found in T’s safe, T had drawn a line through the $5,000 bequest and in its place T had handwritten “$7,000.” Three witnesses are available to verify that the handwriting on the will (in Problems 1-4) belongs to T. What, if anything, will Alice inherit under Tennessee law?
Options:
– (a) $5,000
– (b) $7,000
– (c) $0
Answer: When he put the line through the 5K, he revoked it. There are some states that don’t recognize partial revocation (IN) but most would say the 5K is revoked. What about the 7K? The only way this could stand is if it is a codicil. Majority on codicil says you have to mark everything out and read whats left so we’re looking at $0 right now. But there’s always one other thing you should think of in this situation and that is DRR. Should we undue the revocation of the 5K? 5k or nothing? Which would he have preferred? He would’ve preferred the 5K. So, based on his presumed intent, under the Doctrine of Relative Revocation, we give her 5K.
32
6. In 2000, T dies. T’s only heir is H. T’s safe-deposit box contains the following three documents, all duly signed and witnessed according to the law:
– 1. A will executed in 1995 devising all of T’s property to A.
– 2. A will executed in 1996 devising all of T’s property to B.
– 3. A document executed in 1999 reading: “I hereby revoke my 1996 will.”
```
Who inherits T’s property under Tennessee law?
– Options:
– (a) A
– (b) B
– (c) H
```
Answer: The rule in this State is that the mere act of revocation of a subsequent inconsistent or revocatory will does not of itself revive a former will and creates no presumption for or against revival, but the question to be determined from all the facts and circumstances is the intention of the testator. Wrinkle v. Williams, 37 Tenn. App. 27, 260 S.W.2d 304 (Tenn. App. 1953). If all we have here is the evidence we’re given, H gets the property.
33
7. On March 1, 2005, T duly executed a typewritten will leaving all of her property to A. On May 1, 2006, T duly executed a typewritten will leaving all of her property to B. The 2006 will contains an express revocation clause. T dies in 2007, survived by A, B, and C (T’s only heir). The following items are found in T’s safe-deposit box:
– 1. The 2005 will which was intact.
– 2. The 2006 will which was torn into four pieces.
```
Who inherits T’s estate under the UPC?
Options:
(a) A
(b) B
(c) C
```
Answer: Should we apply revival here due to the torn subsequent will? UPC 2-509 Revival of Revoked Will – according to the UPC, there’s a very slight presumption against revival...this will be opened up to extrinsic evidence. But if this is all we have, then C (T’s only heir) is the best answer. This is incredibly ambiguous.
34
8. On March 1, 2005, T duly executed a typewritten will leaving all of her property to A. On May 1, 2006, T duly executed a typewritten will leaving all of her property to B. The 2006 will contains an express revocation clause. T dies in 2007, survived by A, B, and C (T’s only heir). The following items are found in T’s safe-deposit box:
– 1. The 2005 will which was intact.
– 2. The 2006 will which was torn into four pieces.
```
Who inherits T’s estate under Tennessee law?
– Options:
– (a) A
– (b) B
– (c) C
```
Answer: No presumption either way. This means it’s going to be the same answer. C will take.
35
In 2006, H and W legally divorce. W dies in 2007, survived by H, S, and B. W did not revoke or modify her 2005 will. Who inherits W’s estate under Tennessee law?
Answer: Tenn. Stat § 32-1-202. Dissolution. The answer is 50K to S and then the rest goes to the brother.
36
12. T duly executes a will in 2003 (the “2003 will”), which leaves 90% of her estate to X and 10% to Y. T duly executes a new will in 2005 (the “2005 will”), which leaves 100% of her estate to X. The 2005 will contains an express revocation clause. In 2006, T, in a room full of friends, tears up the 2005 will with the intent to revoke it, telling her friends that she prefers the 2003 will. T dies in 2007, survived by X, Y, and S (T’s sole heir). Upon her death, the 2003 will is found intact and the 2005 will is found torn into four pieces.
How would the estate be distributed under TN law?
- How about TN where we don’t have a statute? Wrinkle v. Williams
The rule in this State is that the mere act of revocation of a subsequent inconsistent, or revocatory will does not of itself revive a former will and creates no presumption for or against revival, but the question to be determined from all the facts and circumstances is the intention of the testator. Wrinkle v. Williams, 37 Tenn. App. 27, 260 S.W.2d 304 (Tenn. App. 1953).
Wrinkle v. Williams, 37 Tenn. App. 27, 36-37, 260 S.W.2d 304, 309 (1953) (“Hence it must be concluded beyond any doubt, as stated in proponent's reason No. 2, that she had no intention of dying intestate. Therefore, from the established facts that she revoked the third will without fraud or undue influence of John Wrinkle and in accord with her wishes, that she had no intention of reviving the first will of 1935, and that she had no intention of dying intestate, all of which is conclusively established beyond any reasonable doubt, we think it must be held that she destroyed the third will with the intention of reviving the second will.”).
37
13. W executes a will in 2005 that leaves all her property to F, her father. In 2010, W marries H. In 2011, W gives birth to her first child, C. In 2013, W dies. W never revoked or modified her 2005 will. What result under Tennessee law?
50/50 divided between spouse and child
38
1. T duly executes a five-page will on June 1. Page four of the will contained a single clause; that clause left T’s residue to A. On August 1, T removes the staple from the will, substitutes a new page four (leaving T’s residue to B), and re-staples the will back together. Two days before death, T duly executed an attested codicil that provides in full:
– “I hereby revoke paragraph 3 of my will and replace it with the following sentence: I name D as my Executor. I hereby reaffirm all other provisions of my will.”
T dies on October 1, survived by A, B, D, and C (T’s sole heir). The codicil and the will (as modified) is found in T’s home, along with the old page four, which has been torn in half. Who inherits T’s residue?
Answer: The codicil incorporated the will by reference when it was made...this is the argument you would use for B because the original will wasn’t executed properly which is what is needed by the republication doctrine. Both would probably work. Then answer is B.
39
T duly executes a will on May 1. Clause 5 of the will provides: “My diamond watch should be given to the person whose name I told to my executor on April 30.” Clause 6 provides: “I leave my residue to X.” Who inherits the watch?
Answer: It’s in existence, but it’s not in writing. We can’t incorporate this. X gets the diamond watch.
40
T duly executes a holographic will on May 1, leaving $10,000 to A and residue to B. T dies on July 1. When the will is found among T’s things, A’s name had been scratched out and in its place T had handwritten the name “C.” Who will inherit T’s estate?
Answer: C – A holographic will is a working document, so long as it’s in his handwriting, we’re going to force the final edition. Why would you expect someone to sign something they’ve already signed?
41
1. On June 1, T signs a typewritten will leaving all of his property to A; the will is not witnessed. On July 1, T handwrites the following provision on the bottom of the last page of the will: “In addition to the items in this will, I leave $10,000 to B.” T signed and dated this provision. Who will inherit T’s estate?
Answer: There’s no way to use republication here because you can republish something that wasn’t properly executed. But, you can incorporate by reference? If it’s properly identified. If the codicil is valid, which it is, and it incorporates...I think there’s enough evidence here that the residue can go to A.
42
T executes a typewritten will on June 1 leaving all of his property to A (a friend). A and X witness the will. On June 15, T executes a first codicil to the will leaving $1,000 to B (a friend). B and C witness the first codicil. T dies on December 1. Who inherits T’s estate under TN law
i. Like the majority, we purge) B is an interested witness on the last document and do not get anything, A gets all of the residue by pure luck.
43
1. T duly executes a will on June 1. Clause 4 of the will provides: “I leave all of my property to the person named as the residuary beneficiary in my brother’s (B) last will. B duly executed a will on May 1, leaving his residue to A. T dies on July 1; B dies on July 15. T’s closest heir is S. Who inherits T’s estate?
incorporation by reference
44
1. T duly executes a will on June 1. Clause 4 of the will provides: “I leave my automobile to my butler.” At the time of execution, T owns a 1976 Pinto and his butler is Jeeves. At the time of death, T owns a new Lexus and his butler is James. Who inherits T’s automobile?
Answer: Did he have a lifetime motive? Yes. He didn’t buy the car based off of who was going to inherit. He didn’t hire the butler because of the inheritance. James gets the Lexus.
45
T’s will provides:
• 1. I leave my two-carat diamond ring to my daughter, A.
• 2. I leave $10,000 to my sister, B.
• 3. I leave the rest of my estate to C.
A and B predecease T. A had two children who survived T. B had one child who survived T. Who inherits T’s estate under:
the children of A
46
T’s will provides:
• 1. I leave my two-carat diamond ring to my step-son, A.
• 2. I leave $10,000 to my spouse, H.
• 3. I leave the rest of my estate to C.
A and H predecease T. A had two children who survived T. H had one child from a former marriage (B) who survived T. Who inherits T’s estate under:
daughter
47
T’s will provides:
• 1. I leave my two-carat diamond ring to my friend, A.
• 2. I leave $10,000 to my son-in-law, B.
• 3. I leave the rest of my estate to C.
A and B predecease T. A had two children who survived T. B had one child who survived T. Who inherits T’s estate under:
• A’s kids get the ring, H’s kids get $10,000, the rest to C (A and H’s kids take)
48
T’s will provides:
• 1. I leave my two-carat diamond ring to my friend, A.
• 2. I leave $10,000 to my spouse, B.
• 3. I leave the rest of my estate to my niece, C.
C predeceased T. C had three children who survived T. Who inherits T’s residue under:
• A’s kids get ring, B’s kid gets the $10,000
49
T’s will provides:
• 1. I leave my two-carat diamond ring to my friend, A.
• 2. I leave $10,000 to my son-in-law, B.
• 3. I leave the rest of my estate in equal shares to my uncles, C and D.
C predeceased T. C had three children who survived T. Who inherits T’s residue under:
• C’s kids would get 50% and the other 50% would go to D. (always apply the antilapse first)
50
T’s will provides:
• 1. I leave my two-carat diamond ring to A.
• 2. I leave $10,000 to my children.
• 3. I leave the rest of my estate in equal shares to C and D.
At the time T executed her will, T had two children, X and Y. T had a third child (Z) after execution. X predeceased T. X had one child (F) who survived T. Who inherits the $10,000?
Answer: F would end up stepping in for parents and accepting the 1/3 – most states apply antilapse statutes to class gifts.
51
T’s will provides:
• 1. I leave Blackacre to A’s children.
• 2. I leave the rest of my estate in equal shares to C and D.
At T’s death, A has two children, X and Y. Six months later, A has a third child, Z. Three years later, A has a fourth child, U. Who inherits Blackacre?
– The “Rule of Convenience” closes a class when a member is entitled to distribution. A child in gestation at the time the class closes is considered a member of the class; all other future born children are excluded from the class. Thus, X, Y, and Z inherit Blackacre as tenants in common.
Answer: X,Y, and Z get thirds as tenants in common, U gets none.
52
T’s will provides:
• 1. I leave $10,000 to my living children.
• 2. I leave the rest of my estate to C.
During life, T had two children, A and B. Prior to execution, A died, survived by one child (who survived T). B died after execution but before T. B had one child who survived T.
• You’ve overridden the antilapse statute. You put living or surviving in there for a reason. C gets the extra $10,000.
53
2. T’s will provides:
• 1. I leave my entire estate in equal shares to my sisters, B and C.
B predeceases T. B had two children who survived T. Who inherits T’s estate under the UPC and TN law?
Answer: UPC – C will get his his half and B’s children will get B’s, always apply antilapse first. TN – same
54
3. T’s will provides:
• 1. I leave my entire estate in equal shares to my friends, B and C.
B predeceases T. B had two children who survived T. Who inherits T’s estate under the UPC? TN law?
Answer: friends B and C – UPC won’t apply ant-lapse because it’s a friend so if part of the residue fails like this, C will get it all because of the UPC, how about TN law? No residue of residue or antilapse? B’s goes to B’s children – TN will apply its antilapse.
55
T’s will provides: “I leave my 2010 Ford Fusion to A and the residue of my estate to B.” In 2011, T traded the Fusion for a 2011 Toyota. T dies in 2012. What does A receive?
A gets nothing
56
T’s will provides: “I leave Blackacre to A and the residue of my estate to B.” In 2011, T sells Blackacre and buys Whiteacre. T dies in 2012. What does A receive?
Answer: T sells Blackacre, thus A gets nothing. B gets Whiteacre. If T had wanted A to get it, he would’ve changed his will.
57
1. T’s will provides “I leave 10,000 shares of General Motors stock to A.” At the time of execution and at the time of death, T owned no GM stock. What does A inherit?
Answer: In this fact scenario since there was nothing at the time of execution, she wanted the devisee to have something. Fair market value of 10K shares would come out of residue. Ademption is so harsh we try to avoid.
58
2. T’s will provides “I leave my 10,000 shares of General Motors stock to A.” At the time of execution, T owned 10,000 shares of GM stock, but T owned no shares of GM stock at death. What does A inherit?
this is specific and when it's gone, it's gone
59
1. T’s will provides “I leave my 10,000 shares of Ameritech stock to A.” At the time of execution, T owned 10,000 shares of Ameritech stock. Prior to T’s death, Ameritech merged with SBC. As part of the merger, T’s Ameritech stock was automatically converted into 8,500 shares of SBC stock. What does A inherit?
Answer: Involuntary and she had nothing to do with it, we can give the 8500...substance over form.
60
2. T’s will provides “I leave my Ford to A.” At the time of execution, T owned a 1976 Pinto. At death, T owned a 2012 Mustang. What does A inherit?
Answer: Remember we’re finding ways around ademption, we can construe the will around date of death, so A inherits the mustang.
61
1. T’s will provides: “I leave my Nashville home to A.” Prior to death, T was confined to a nursing home, and T’s guardian/conservator sold T’s Nashville home for $200,000. What does A inherit?
– Does A receive all $200,000 or only the remaining proceeds?
No ademption, the testator had nothing to do with it.
62
3. T’s will provides: “I leave my Nashville home to A.” T died in a fire that completely destroyed the Nashville home, which was insured against fires. After T’s death, the fire insurance company pays T’s estate $200,000. What does A inherit?
Involuntary transfer, no ademption
63
4. T’s will provides: “I leave my Nashville home to A.” A few months later, the county condemns the Nashville home so as to build a new highway. T then dies. Shortly thereafter, the county pays just compensation in the amount of $100,000 to T’s estate. What does A inherit?
Involuntary, A inherits
64
1. T devises “My house on James Street to my sister Susan. The residue of my estate to my brother Jeff.” At the time of the will’s execution, T lives at 1307 W. James Street. One year later, T sells the house and buys and moves into a new house at 11 Shawnee Lane. One year later, T dies. Who gets the house at 11 Shawnee Lane in a jurisdiction that adheres to the identity theory (TN) of ademption?
(a) Susan
(b) Jeff
(c) T’s heir
B. Jeff
65
O died recently survived by three adult children, A, B, and C. O’s valid will has been admitted to probate, and the will directs that $10,000 is to be paid to A and the rest, residue, and remainder of O’s estate is to pass equally to B and C. After the execution of the will and six months prior to O’s death, O made a gift of $10,000 to A and another gift of $10,000 to B. There is no direct evidence that the gifts were intended as satisfactions. At the time of O’s death, O’s estate consisted primarily of cash with a total value of $100,000 after the debts were paid. Which answer best describes the most likely disposition of the remaining assets of O’s estate under TN law?
* (a) $10,000 to A, $45,000 to B, and $45,000 to C.
* (b) $50,000 to B and $50,000 to C.
* (c) $10,000 to A, $40,000 to B, and $50,000 to C.
* (d) $45,000 to B and $55,000 to C.
a
66
Testator devises his home to Anthony, $150,000 to Brittany, and all the rest of his estate to Carlos. At the testator’s death, the testator’s obligations to creditors are such that these gifts cannot be paid in full. One or more of the gifts must abate. What is the most likely order of abatement?
* (a) The gifts will abate equally pro rata.
* (b) Anthony’s gift will abate first, Brittany’s gift will abate second, and Carlos’ gift will abate third.
* (c) Brittany’s gift will abate first, Carlos’ gift will abate second, and Anthony’s gift will abate third.
* (d) Carlos’ gift will abate first, Brittany’s gift will abate second, and Anthony’s gift will abate third.
* (e) Carlos’ gift will abate first, Anthony’s gift will abate second, and Brittany’s gift will abate third.
d
67
T’s 1989 will provides:
• I leave my 10,000 shares of Ford stock to A.
• I leave the rest of my estate to B.
In 1989, T owned 10,000 shares of Ford stock. In 1995, Ford stock split 2:1 (T now owns 20,000 shares). In 1997, Ford declared a 10% stock dividend (T now owns 22,000 shares). In 2001, Ford declares a 5% cash dividend ($2,000). T dies in 2007? How will T’s estate be distributed under:
• TN – he’ll get the 20 but not the other two thousand will fall to B.
68
H and W were married and have always resided in the state of X. H died recently. During the marriage, H acquired real and personal property located in X; all assets were titled in H’s name. H’s original will left all of H’s property equally to W and C, H’s adult child by prior marriage. However, H revoked the described will shortly before H died and then validly executed a new will leaving “all of my property” to P, H’s girlfriend. Assuming all debts and taxes have been satisfied, which answer best describes the most likely disposition of the described assets?
a) P succeeds to the assets.
b) W takes her elective share, C takes an intestate share, and P inherits the balance.
c) W takes an elective share, and P inherits the balance.
d) C takes an intestate share, and P inherits the balance.
C
69
O, a married resident of the state of X, died recently. O was survived by O’s spouse, S, and O’s parents, M and F; O never had any children. O’s will was validly executed after O’s marriage to S. It devises O’s entire estate to M and F. What is the most likely disposition of O’s estate?
a) The will can be admitted to probate; the entire estate passes to M and F.
b) The will cannot be admitted to probate; the entire estate passes to W.
c) The will can be admitted to probate; S will be entitled to S’s elective share, and M and F will succeed to everything else.
d) The will cannot be admitted to probate; the estate will be shared by S, M, and F.
C
70
In 1989, H and W, a married couple, execute mutual wills in which each spouse leaves his or her property to the surviving spouse and, upon the death of the survivor, the property is to pass to X. The will contains contractual language. W dies in 2001. In 2003, H marries A. H dies in 2007. H did not revoke or modify his 1989 will before death. Shortly after H’s death, A files a claim against H’s estate for an elective share. X objects to such claims. Who prevails?
Answer: X would get a ½, maybe 2/3 but not all.
71
W executes a will in 2005 that leaves all her property to F, her father. In 2010, W marries H. In 2011, W gives birth to her first child, C. In 2013, W dies. W never revoked or modified her 2005 will. What result under Tennessee law?
intestate
72
1. H executes a will in 1987. In 1989, H has a son, S. In 1990, H dies. In his 1987 will, H left all of his property to G, a non-relative friend. H has no heirs other than S. Is S entitled to anything under TN law?
100%
73
In 1995, T validly executed a will leaving all of his property to X, a friend. At the time of execution, T had one child, C. In 1997, C had a child, GC. C died in 1998. T died in 2000, survived by GC and X. GC files a claim as an omitted heir. Will GC prevail under:
You must be a child, not a grandchild
74
1. A opens a savings account at First National Bank. The account is opened under the name: “A in trust for B.” A deposits all of the money in the account. A dies intestate; A’s closest heir is C. Who inherits the savings account?
– B, as this is a valid Totten Trust.
75
Is the following a valid attempt at creation of a trust? “I give $100,000 to me as trustee to be held in trust for my benefit.”
* a) Yes, this trust has a settler, property, a beneficiary, and a trustee.
* b) Yes, a trust will not fail for want of a trustee.
* c) No, one person may not be a settler, trustee, and beneficiary.
* d) No, there has been no delivery.
* e) No, a trust must have at least one beneficiary who is not the sole trustee.
c
76
S creates a trust in which S is the sole trustee and the sole income beneficiary for life. Upon S’s death, the remainder is payable to S’s probate estate. Is this a valid trust?
Answer: No. His trust never existed because it merged from the beginning.
77
Is the following a valid attempt at creation of a testamentary trust (assume it is contained in a valid will)? “I devise my cattle ranch in Texas to my sister Susan, and I desire that she use the profits from the ranch to benefit my brother, Jeff.”
* a) No, because the devise lacks words of direction.
* b) No, because we cannot be sure the ranch will produce any profits.
* c) Yes, because Susan is the trustee.
* d) Yes, because a testamentary trust will not fail for want of a trustee.
A
78
O died recently. O was survived by a child, C, and O’s grandchild, G, a child of another child of O who predeceased O. O’s valid will has been admitted to probate and devises 1,000 shares of the common stock of a publicly held corporation to C “with the request that C deliver the shares to G, if G graduates from college”; the rest, residue, and remainder of O’s estate is devised to a charity. G was 18 at the time of O’s death and had not yet graduated from high school. Which answer best explains the likely disposition of the shares of stock by reason of O’s death?
* a) C is the trustee of an express trust for the benefit of G.
* b) G will ask the court to impose a constructive trust on C in favor of G to avoid unjust enrichment.
* c) The charity will ask the court to impose a resulting trust on C in favor of G because O’s attempt to create a private express trust failed.
* d) C owns the stock.
* Same facts, except the will provides: “to C, who I hope delivers the shares to G, if G graduates from college”; the rest, residue, and remainder of O’s estate is devised to a charity.
Answer: This is precatory due to the word “request.” C owns the stock. (d)
79
O died recently. O was survived by O’s adult child, C, and G, the adult child of C. Prior to O’s death, in a written document signed by O, O declared that O was serving as the trustee of Blackacre and explained that O would manage Blackacre so long as O was willing and able to do so; if O would ever be unable or unwilling to continue to serve as trustee, O’s friend, F, would serve as trustee until O’s death. The document provides that F, as trustee, was to convey Blackacre to F at the time of O’s death. Additionally, prior to O’s death, O or F, whoever was serving as trustee, was to pay to O all income Blackacre generated. The terms of the written document also provide that the trust was irrevocable. O’s valid will, executed the same day as the described written document, has been admitted to probate and devises all of O’s estate to G. Prior to death, O transferred record title to Blackacre to the “trustee of O’s trust.” Which answer best describes the most likely disposition of Blackacre by reason of O’s death?
* a) Because the document was not executed with testamentary formalities, Blackacre passes to G.
* b) Because the document was not executed with testamentary formalities, Blackacre passes to C.
* c) F, as trustee, can convey legal title to F, individually.
Answer: O is the settlor, but he’s not the sole beneficiary! He’s not trying to make this a will substitute. (C)
80
S deposits $5,000 in a savings account at First National Bank. FNB loses all of its money (including S’s $5,000) in bad investments. S sues FNB for breach of trust. Will S prevail?
Answer: No, this isn’t in trust.
81
T’s will provides: “I leave Blackacre to A provided that A pays $10,000 to B.” Did T create a trust with A as trustee and B as beneficiary?
- No. This is an equitable lien. “A right, only enforceable in equity, to have a demand....”
82
Arthur’s estate plan included a revocable trust established 35 years ago with ABC Bank as trustee. The principal asset of the trust has always been Blackacre, a very profitable, debt-free office building. The trust instrument instructs the trustee to pay the net income to Arthur for life, and, after the death of Arthur, to pay the net income to his wife, Alice, for life; and, after her death, to distribute the net trust estate as she may appoint by will, or default of her exercise of this power of appointment, to my son (her stepson), Charles. Arthur died 30 years ago survived by Alice and Charles. Arthur had not revoked or amended the trust agreement. A few years after Arthur’s death, Alice remarried; she then had a child, Marie; was widowed for a second time; and, last year, died. Her will contained only one dispositive provision: I give my entire estate to my daughter, Marie, and I intentionally make no provision for my stepson, Charles. Marie is now 22 years old. The common-law Rule Against Perpetuities is unmodified by statute in the jurisdiction. There are no other applicable statutes. Charles brought an appropriate action against Marie to determine who was entitled to the net trust estate and thus to Blackacre. If the court rules for Marie, it will be because
* A. Alice’s life estate and general power of appointment merge into complete ownership in Alice.
* B. The Rule Against Perpetuities does not apply to general powers of appointment.
* C. The jurisdiction deems entire estate to be a reference to Blackacre or to Alice’s general power of appointment.
* D. Alice intended that Charles should not benefit by reason of her death.
C
83
• In a signed writing, S declares herself trustee of the property that she will inherit from M. The trust is to pay income to S for life, remainder to X. M is alive. Is this a valid trust?
• Not valid. This is only an expectancy.
84
• In a signed writing, S declares herself trustee of the real property that she will purchase over the next five years. The trust is to pay income to S for life, remainder to X. S currently owns no real property. Is this a valid trust?
• Not valid. Plans on it but doesn’t own anything now.
85
• In a signed writing, S declares herself trustee of a $10,000 promissory note. B owes S $10,000 on a promissory note. The trust is to pay income to S for life, remainder to X. Is this a valid trust?
• Valid.
86
• In a signed writing, S declares herself trustee of a $10,000 promissory note. The note was issued by S payable to the trust. The trust is to pay income to S for life, remainder to X. Is this a valid trust?
• Not valid. For all practical purposes the promissory note is an IOU, not a third-party promissory note.
87
• In a signed writing, S declares herself trustee of a contingent remainder S owns in Blackacre. The trust is to pay income to S for life, remainder to X. Is this a valid trust?
• Valid. All of the future property interests are interests and transferable. Don’t think it has to be viable or currently earning profits, just something the law recognizes as property.
88
1. On June 1, 2007, T executes and funds a revocable inter vivos trust to pay the income to his children until the youngest turns 21 and pay the remainder to his then surviving children in equal shares. At the time of execution of the trust, T has no children. Is the trust valid?
valid
89
2. In her will, T left all her personal property to her "trustees to make such disposal among my friends as they, the trustees, shall select. Any part of such property not disposed of by my trustees shall become part of my residue." T dies survived by A (her residuary beneficiary) and several "friends." Is the bequest valid?
- You can actually do this today. UTC § 402 overturned the Campbell case.
90
1. In her will, T leaves Blackacre to her husband H for life, remainder to those of my children that H shall select during his lifetime. Is this a valid bequest?
valid
91
1. S conveys title to Blackacre to A upon an oral understanding that A will hold the property for S's benefit during S's lifetime and convey Blackacre to B upon S's death. Is this a valid trust as a matter of law?
invalid
92
1. In her will, T provides: "I leave my entire estate to A, as trustee, to be distributed according to the instructions I told to him before I died." There is extrinsic evidence that T wanted B to be the sole beneficiary. Is this a valid trust and, if not, who owns the property?
invalid
93
2. In her will, T provides: "I leave my entire estate to A." There is extrinsic evidence that T intended for A to hold the property in trust for B. Is this a valid trust and, if not, who owns the property?
- Latent Ambiguity, but let’s assume the evidence is overwhelming – it looks like A will be unjustly enriched if he keeps it, so the court will impose a constructive trust on A for B
94
In 2003, T executes a will leaving her estate to Marc. In 2004, T plans to execute a new will revoking the gift to Marc and leaving her estate to Fred. Jake learns of this and, because he does not like Fred, fraudulently prevents T from revoking her first will and executing the second will. Thus, if the first will is probated and given effect as written, T's property will pass to Marc, who is wholly innocent of any fraud. At T's death, the court should
* (a) Probate the first will and allow the wholly innocent Marc to take T's property.
* (b) Find that T died intestate and allow T's heirs to take T's property.
* (c) Probate the first will but impose a constructive trust on the wholly innocent Marc for the benefit of Fred.
* (d) Find that T died intestate but impose a constructive trust on T's heirs for the benefit of Fred.
* (e) Probate the second will and allow Fred to take T's property.
C Even an innocent person can have a constructive trust place on them.
95
Omar attempts to create a trust by orally declaring that “he holds his farm for the benefit of Zachary.” Has Omar created a valid trust in a majority of jurisdictions?
* a) No, because a trust cannot be created orally.
* b) No, because one must use the words “trust” in order to create a trust orally.
* c) No, because a trust for land must be in writing.
* d) No, because there is no assurance that the farm will produce profits; thus, there is not sufficient trust property for the creation of a trust.
* e) Yes, because this trust has a settlor with the intent to create a trust, trust property, a beneficiary, and a trustee.
Answer: (C), but in TN if there’s clear and convincing proof, so it may be valid.
96
T dies intestate. T died in a hospital in Richmond, Virginia. At the time of death, T was domiciled in Tennessee. T owned real and personal property in Davidson County (Tennessee), and a condo in South Carolina. What law will govern the disposition of:
– A. T’s personal property
– B. T’s Tennessee real property
– C. T’s South Carolina real property
A • Tennessee
B - Primary probate in TN
C - Ancillary probate in South Carolina
97
On June 1, 2015, T creates an irrevocable trust with A as trustee. The trust is to pay "the income and corpus to B for life in such amounts as A determines in her sole and absolute discretion. Upon B's death, the remaining income and corpus is to go to C." B has recently been fired from his job and is in dire need of funds. B has no money and no prospect of obtaining any. B has come to you wanting to know, under the UTC:
(1) what kind of trust this is
- Discretionary and Mandatory are the only two types. This is as discretionary as it gets.
98
On July 1, 2015, T creates a testamentary trust with A as trustee. The trust is “to pay all income to B for life, and upon B's death the corpus is to go to C." B has come to you wanting to know, under the UTC: (1) what kind of trust this is; (2) whether A can be compelled to make distributions to B; and (3) whether B's creditors can compel A to make distributions to them.
- This is a mandatory trust. If money is due and the trustee hasn’t paid, it’s an easy suit.
99
On August 1, 2015, T creates an irrevocable trust with A as trustee. The trust is to pay "the income and principal to B for life in such amounts as A determines in A’s discretion are necessary for B's support, education and maintenance. The trustee shall make such payments only after having considered other sources of support available to B. Upon B's death, the trust is to pay the remaining income and corpus to C." B has come to you wanting to know, under the UTC:
(1) what kind of trust this is;
(2) whether and under what circumstances A can be compelled to make distributions to B; and
- Support Trust (Discretionary Support Trust) the trustee can use at his discretion but if he’s going to, he must use for these purposes. Most discretionary trust are support trusts like this.
- Almost impossible. You’re in 504(d) again because the UTC only recognizes discretionary and mandatory. Only under abuse of discretion. You may be able to win this one based off of need as well as proving the trustee is withholding out of spite.
