Miscellaneous Related Issues

Question 1

Uniform Statutory Rule Agains Perpetuities

Answer 1

Georgia Rule - Even though at present there is a violation of the Rule, wait and see for 90 years to see if there is actually a violation

• If not, no further action needed
• If there is violation, court authorized to use CY PRES to fix the Rule violation to best accommodate the intent of the settlor.

Question 2

3 Requirement for Valid Gift

Answer 2

1. Donor with donative intent
2. Actual or constructive Delivery (Accomplished when donor relinquishes dominion and control)
3. Acceptance by Donee

Question 3

Gift Causa Mortis

Answer 3

Gift causa mortis - Gift in contemplation of death

• can only be made of personal property
• must be proved by at least one witness

Question 4

Powers of Attorney

Answer 4

CL:
POAs cease upon incompetency of principal, thereby necessitating creating a durable power of attorney to remain effective after incompetency.
POAs ARE AUTOMATICALLY DURABLE IN GA
-Freely revocable (Must deliver written revocation to agent under POA and anyone known to dealing with him)
-Terminates on death

Question 5

Health Care Power of Attorney

Answer 5

Indicates wishes regarding the continuation or termination of life-prolonging procedures

Question 6

Guardian

Answer 6

If an individual is found by the court to be unable to care for herself to the extent that her health and safety could be endangered, the probate court may appoint a Guardian.
- If an agent under a health care POA was appointed prior to the appt. of guardian, the agent still has priority for medical decisions

Question 7

Conservator

Answer 7

If an individual is found by the court to be unable to manage her financial affairs, the probate court may appoint conservator.
- Appointment of conservator invalidates any pre-existing financial power of attorney

Question 8

Federal Estate and Gift Tax

Answer 8

• Individual personal estate tax exemption of $5.25 million
• Anything over that is taxed at 40%
• Married Couples - 10 million by combining individual exemptions
• Additionally, if one spouse bequeaths property to the other spouse, any amount bequeathed is also exempted under the marital deduction

Question 9

Taxes: Gifts and Gross Estate

Answer 9

A gift occurs whenever a donor makes a gratuitous transfer without FULL and ADEQUATE consideration. Donor must also give up all dominion/control over the gift.
$14,000 exclusion for each donee of a gift. Also,

MARITAL DEDUCTION - No taxes for any transfer by will or intestacy to spouse
CHARITABLE DEDUCTION - No taxes for transfer to charity

-Donor has liablity for payment, but is he does not the donee become responsible

Question 10

Taxability of Property Subject to Power of Appointment

Answer 10

• Gross estate of the decedent includes the value of the property over which he, at the time of his death, holds general power
• Special Power of Appointment not part of gross estate

Question 11

General Power of Appointment

Answer 11

Donee can appoint the property to anyone, including himself, his estate, or his creditors

Question 12

Special Power of Appointment

Answer 12

Donee has to exercise the power in favor of particular people

“Income to my daughter June for life, and on her death principal goes to her descendants as she shall appoint by will”