Week 1 Reading - Test 1 - Sheet1 Flashcards Preview

LAS206 - Probate > Week 1 Reading - Test 1 - Sheet1 > Flashcards

Flashcards in Week 1 Reading - Test 1 - Sheet1 Deck (52):

will and associated documentation

estate planning


written declaration of a person's intent to distribute property after his or her death



A will is a method by which (1) may be transferred

1. title to property


Wills are executed when (1) but are (2), meaning legally binding only upon the person's death. This means that until death the will is (3), and that property to be bequeathed to a (4) may be sold or given away while the person is alive.

1. the person is alive
2. ambulatory
3. revocable
4. beneficiary


One who executes a will



If someone dies without a will, they die (1). This means usually (2) will determine how and to whom all the property she possessed will be distributed.

1. intestate
2. intestate succession


If a person has a will, she can determine how (1), which include state, federal and in some states inheritance taxes, will be paid--out of which source. An (2) in a will allocates the tax burden of the beneficiaries in a will. Without it, distribution of taxes is determined by (3).

1. estate taxes
2. apportionment clause
3. state law


(1) a person who is appointed to care for and manage the minor person, minor's property, or both. Can be a (2) or a (3). Parents are always the (4) of the child but not necessarily of the (5).

1. guardian
2. guardian of the person (care and custody of child)
3. guardian of the property (care of property until child reaches majority/emancipation)
4. natural guardians
5. property


A trust is a legal agreement in which a person called the (1) transfers (2) of property to a (3). The trustee will then manage the property for (4).

1. settlor
2. legal title
3. trustee
4. beneficiaries


a trust which is drafted as part of the testator's will and only becomes effective upon the tesator's death. Prevents a live guardian, for example, from having to manage the trust for a deceased's children.

testamentary trust


person who administers the deceased's assets and carries out the terms of the will. Gathers assets, pays debts/taxes, distributes property according to wishes.

personal representative/executor (or administrator if appointed by court)


3 things real property (realty/real estate) includes

1. land (inc. airspace and area below surface of the land)
2. structures permanently affixed to the land (houses, offices, etc.)
3. objects attached ot the land or buildings (fixtures)


3 types of property included in real property

1. immovable property
2. fixed property
3. permanent property


objects that were once personal property but have become permanently attached to land or buildings (trees, AC units, ovens, etc.)



all remaining property that is not realty--can be tangible (computer, painting) or intangible (checks, cash, stocks)

personal property


2 types of intangible property that jurisdictions may treat as tangible property

stamps, coins (collectible)


a form of intangible property--a persona right you retain when you do not possess the property, but have a right to recover in a lawsuit

chose in action


property (1) is owned solely by one person, either an individual perosn or an individual company and no others. Absolute ownership.

severally owned (property "in severalty")


two or more persons own property concurrently

joint ownership


4 types of joint ownership

1. joint tenancy
2. tenancy in common
3. tenancy by the entirety
4. community property


(1) is a form of ownership of property by two or more persons said to be joint tenants. The interest each holds at the inception of the initial possession is characterized by the (2), which are (3), (4), (5) and (6); all four are required for valid joint tenancy.

1. Joint tenancy
2. four unities of title
3. time
4. title
5. interest
6. possession


A unique concept of joint tenancy. Upon death of one tenant, his or her interest passes automatically to the surviving joint tenants

right of survivorship


Joint tenancy property is often called a (1) because the property automatically passes to the survivors as a (2).

1. non-probate asset
2. matter of law


A new tenant replacing a joint tenant with right of survivorship will be a (1) instead, and will not have (2). The other tenants will be (3).

1. tenant in common
2. right of survivorship
3. joint tenants with right of survivorship to each other (as before)


occurs when one of the four unities of joint tenancy is not present

tenancy in common


form of jointly owned property that requires the fourt unities of joint tenancy plus the unity of marriage. Both spouses are required to mortgage, sell or gift the property, and neither may sever the tenancy without written consent of the other. Not all states recognize this.

tenancy by the entirety


Pro of tenancy by the entirety

keep property out of reach of creditors (good for if one spouse has debts/loans)


a form of ownership of property between spouses. Generally all property acquired by a husband or a wife during marriage that is not classified as separate property

Community property


All property acquired prior to marriage or acquired during marriage by gift, will, inheritance or other means classified as separate by state statute

separate property


In a community property state, each spouse owns (1) and property acquired (2) is presumed community property. Upon death, the surviving spouse gets (3), and a spouse may not, under any circumstances, distribute more than (4).

1. half of the marital estate
2. during marriage (subject to proof that it is not part of estate)
3. his half (rest is passed by will/intestacy)
4. his half of the marital estate


4 advantages to joint tenancy

1. auto transfer of ownership upon death
2. no probate of that aset (no probate expenses)
3. joint management of property
4. immediate access to the asset by survivors


6 disadvantages to joint tenancy

1. disagreement on property management
2. unintended "inheritance" because property is not affected by the will
3. may destroy estate planning of the deceased (other tenants gain property, not beeneficiaries)
4. attachment by joint tenant's creditors
5. not affected by contract
6. potential tax consequences


total ownership of property; not subject to restrictions. Unless otherwise stated, all conveyances are presumed to create this

fee simple estate/fee simple absolute/estate in fee


While a fee simple estate is total ownership, more than one person may hold a (1) in the property.

1. fee interest


4 features of fee simple estate

1. fully transferable during the life of the owner
2. may be transferred by will
3. subject to the claims of creditors (before and after death of owner)
4. If it is not transferred by will, will pass through intestacy to the owner's heirs; subject to the rights of a surviving spouse


A (1) is the right of a person, called the (2), to use property until death.

1. life estate
2. life tenant


3 features of life estate

1. when owner dies, right to property ceases
2. no distribution via will
3. sale of property=only for life of owner


a life estate held for the life of another person

life estate pur autre vie


an interest retained by the grantor of a life estate that allows for the return of property to the grantor upon termination of the life estate

reversion/revisionary interest


A (1) occurs when a grantor gives a life estate to a life tenant and gives the rest to a future owner, someone other than himself or herself (called the (2)). Commonly used to (3).

1. remainder
2. remainderman
3. transfer property to children (as the remaindermen) so the property can be a non-probate asset ("poor man's will")


If a remainderman dies before the person whose life a life estate is based on, the remainder will (1).

1. pass to his estate upon the death of the other, and be distributed by will or by intestacy


In a (1), the time in which the tenant will hold the property is specifically designated. This is a form of (2), except the person has actual ownership.

1. tenancy for years
2. leasehold estate


All forms of property in a decedent's estate that require a probate court proceeding to distribute them to the proper beneficiaries or heirs. (includes will, intestacy)

1. Probate assets


Do not require any court proceedings to pass title from the decedent's estate to the beneficiaries or heirs. Not distributed by will or intestacy. Not subject to claims of decedent's creditors, spouse or children.

Non-probate assets


Two benefits of non-probate

1. property passes to beneficiaries more quickly
2. high cost of probate is greatly reduced


contract between insurance company and a person who purchases benefits; ins. co. will pay a named beneficiary a sum of money upon his death. Money is paid directly; no need for probate.

life insurance


Naming an (1) to a life insurance policy prevents non-probate assets from becoming probate assets

alternate beneficiary (in case original dies first)


savings accounts that a depositor (trustee) opens for the benefit of another (the beneficiary). During depositor's life, account may be used by depositor. Upon death, passes to beneficiary, no probate estate.

Pay-on-death account/Totten trust


As long as not testamentary, this is not part of a decedent's probate estate because it actually becomes effective during the decedent's lifetime. Any assets made part of it are non-probate assets.



Life estates are neither (1) or (2) assets.

1. probate assets (no interest in property beyond death of named person)
2. non-probate assets (no interest remaining with estate)


Until there is only one remaining joint tenant with right of survivorship, no (1) is necessary to pass the deceased's interest to another.

1. probate proceeding


an enhanced life estate deed in which the holder of the life estate also retains the right to transfer the entire property including any reversionary or remainder interest, by sale or gift, without obtaining the consent of the owner of the revisionary holder or remainder interest (usually required--e.g., have to ask kids' permission to transfer property.) If property is transferred, remainder interest is destroyed. If life estate holder dies first, functions as traditional life estate.

Lady Bird Deed