Module 7: Non-probate Transfers

Question 1

Types of non-probate transfers

Answer 1

functionally identical to wills
may modify during life with complete power

1) life insurance
2) pension accounts
3) bank, brokerage, mutual fund accounts
3) revocable inter vivos trust

Question 2

Texas view on trust revocability

Answer 2

If the trust is in writing, the revocation must also be in writing

Question 3

Intervivos trust revocability

Answer 3

Majority: presume revocable
TX: assume all trusts are revocable unless trust states otherwise

Question 4

Transfer on death deed

Answer 4

deed passes real property at the death of the grantor
- deed filed when executed, but passes when the grantor dies

Question 5

Lady Bird Deed

Answer 5

Enhanced Life Estate
Grantor executes the deed, but retains a life estate with the power to sell, mortgage, lease property, retain proceeds from any sale, or revoke at any time
- designates a person to take at death of grantor
- may be executed by a POA holder

Question 6

3 points of difference between assets in joint tenancy and probate assets

Answer 6

1) creation of joint tenancy is permanent and gives the joint tenants equal interests

2) Joint tenant cannot pass his or her share by will.
- survivor of the joint tenancy automatically receives the property at the death of the other joint tenant

3) Creditors of the decedent have NO interest in the joint tenancy property after the death of the decedent
- there is no longer an in for creditors, interest has become that of the survivors

Question 7

2 types of gifts

Answer 7

1) intervivos

2) causa mortis
- given in anticipation of death
- revocable
- relaxed delivery

Question 8

Elements of a gift

Answer 8

intent

delivery
- actual
- constructive
- symbolic

sound mind (presumption for)

acceptance (presumption for)