Paralegal Power Break: The Estate Plan & Wills
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The document outlines the components and terminology related to estate planning, including the importance of wills, requirements for making a will, and the roles of various parties involved such as testators, beneficiaries, and trustees. It explains concepts like formal probate, intestacy, and types of trusts, alongside the legal definitions relevant to asset distribution and estate management. Additionally, it covers alternatives to wills, such as joint tenancies and trusts, which facilitate the transfer of property upon death.
Paralegal Power Break: The Estate Plan & Wills
- 1. The Estate Plan and the Purpose and Need for a Will
- 2. Estate Plan • An arrangement of a person’s assets using the laws of various disciplines (wills, trusts, taxes, insurance, and property) to gain maximum financial benefit of all the laws for the disposition of the person’s assets during life (inter vivos) and after death
- 3. Will • A legally enforceable written declaration of a person’s intended distribution of property after death
- 4. Requirements to Make a Will • Capacity – Legal capacity • The age at which a person acquires capacity to make a valid will, usually 18 – Testamentary capacity • The sanity (sound mind) requirement for a person to make a valid will
- 5. Terminology of Makers of Wills • Testator – A male who makes and/or dies with a valid will • Testatrix – A female who makes and/or dies with a valid will
- 6. Requirements of a Will • Written Document • Witnesses • Date (in most states) • Signature of the Testator/Testatrix • Sound Mind of the Testator/Testatrix • Legal Capacity of the Testator/Testatrix • Selection of Personal Representative
- 7. Formal Probate • A court-supervised administration of a decedent’s estate – Decedent: A person who has died
- 8. Terminology of Wills • Beneficiary – A person entitled to receive property under a will • Devisee – A person who receives a gift of real property under a will • Legatee – A person who receives a gift of personal property under a will
- 9. Terminology of Intestacy • Intestate – A person who dies without a valid will • Heir – A person who receives a gift of real property from an intestate • Next of Kin – The closest blood relatives of a decedent
- 10. Terminology of Wills • Ambulatory – Subject to change • Codicil – A written amendment to a will • Letter of Instructions – A document that specifies a testator’s intentions for organ donation and funeral and burial plans but does not amend or change a will
- 11. Residuary Estate • The remaining assets of a decedent’s estate after all debts have been paid and all other gifts in the will have been distributed
- 12. Property Distributions • Tenancy in Common • Joint Tenancy
- 13. Structure of an Estate • Beneficiary Testator Personal Representative Estate Letter of Instructions
- 14. Trusts • Trust – A right of property, real or personal, held by one person for the benefit of another • Testamentary Trust – A trust created in a will; becomes operational upon the death of its creator • Inter Vivos Trust – A trust that is effective during the life of its creator; becomes operational immediately after created
- 15. Structure of a Trust • Settlor Trust Estate Trustee Beneficiary Inter Vivos Gifts
- 16. Title • Legal Title – The form of ownership of trust property held by the trustee, giving the trustee the right to control and manage the property for another’s benefit • Equitable Title – Provides the right to the benefits of a trust to the beneficiary
- 17. Trustee • The person or institution named by the maker of a will or creator/settlor of a trust to administer the property for the benefit of another, according to the creator’s provisions – Compare to an executor, who carries out the terms of a will, and a personal representative, who carries out the terms of a will or administers an estate when there is no will
- 18. Personal Representative • A person who administers and distributes an intestate or testate decedent’s estate – Compare to an executor, who carries out the terms of a will
- 19. Will Substitutes • Joint Tenancy • Life Insurance • Inter vivos Trust • Inter vivos Gift • Community Property Agreement • Transfer-on-Death Deed/Beneficiary Deed