Wills, Trusts, and Estates

Transcription

1 CHAPTER 20 Wills, Trusts, and Estates 20-1 Property Distribution Upon Death 20-2 Trusts Due to time constraints, we will only be covering the Will s Section.

2 20-1 Property Distribution Upon Death GOALS Differentiate between dying testate and dying intestate Describe how a decedent s property is distributed SLIDE 2

3 Question for Discussion Name three reasons you think a person should have a will. Give property to whomever Name a guardian for children Provide for family Name someone to handle affairs SLIDE 3

4 LEGAL ALTERNATIVES IN PROPERTY DISTRIBUTION Death without a will Disadvantages: Court has power to settle affairs Administer guardianships Appoints representative Estate is distributed in accordance with state statutes SLIDE 4

5 Death with a will Creation and execution of a valid will (conform) Amendment of a valid will (keep current) Special types of wills (holographic or nuncupative) Revocation of a will (destruction, defacing, lost) Requirements of a Valid Will Testamentary intent Testamentary capacity Writing signed at the end Witnessed by 2 people not mentioned SLIDE 5

6 DISTRIBUTION OF THE DECEDENT S ESTATE Procedure prior to distribution Executor/trix must show proof of death Official 7 years Distribution Without a will (determined by appropriate statute) With a will (follow as closely as possible) If there are no inheritors (escheats to state) SLIDE 6

7 The Living Will Living Will vs A Will gives directives to physicians use of life support systems terminal or vegetative ease concerns of family members SLIDE 7

8 20-2 Trusts GOALS Recognize the value of the trust instrument Identify the various types of trusts SLIDE 8

9 PURPOSE AND CREATION OF TRUSTS Trust Trustee Settlor Beneficiary SLIDE 9

10 TYPES OF TRUSTS Inter vivos trust Testamentary trust Revocable trust Charitable trust Private trust Spendthrift trust Express trusts Implied trust Resulting trust Constructive trust SLIDE 10

11 PREVENT LEGAL DIFFICULTIES In making provision for the distribution of your assets... Be sure to make a legally proper and clear will. Dying intestate will result in the needless payment of various taxes and fees. Plus it will bring about the distribution of the assets of the estate in accordance with the state intestacy statute. Continued on the next slide SLIDE 11

12 PREVENT LEGAL DIFFICULTIES Keep your will updated. An unclear or out-of-date will may cause conflicts among your potential beneficiaries. This may leave lifelong hard feelings and cost a great deal in legal fees. A will can be changed or canceled at any time during the maker s life. Avoid confusion as to which is the effective will by using an attorney. Be sure that any subsequent changes are properly executed and, if appropriate, nullify any existing will. Continued on the next slide SLIDE 12

13 PREVENT LEGAL DIFFICULTIES Consider utilizing a trust to insure fulfillment of your wishes for the management of your assets; both before and after death (inter vivos and testamentary trusts). Trusts are flexible, professional management can be utilized, and they can outlast the settlor. SLIDE 13