IX
OUTLINE
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PREFACE ... V ACKNOWLEDGMENTS ... VII TABLE OF CASES ... XIXIntroduction ... 1
Chapter 1.Intestacy ... 7
A. Intestate Statutes ... 7
B. Modern Intestacy Schemes ... 9
1.Surviving Spouse’s Share ... 9
a. The Entire Estate ... 9
b. Portion of the Estate ... 10
i. Decedent Leaves a Parent ... 10
ii. Decedent Leaves Stepchildren ... 11
iii.Decedent Leaves Children from a Prior Relationship ... 11 2. Descendants ... 11 3. Parents ... 12 4. Grandparents ... 13 5. Collateral Relatives ... 13 a. First-Line Collaterals ... 13
b. Second and Third-Line Collaterals... 15
c. Next of Kin ... 15
d. Stepchildren ... 16
e. Preferences ... 16
6. The State ... 17
7. Community Property Intestacy Statutes ... 17
C. Simultaneous Death ... 18
D. Division Among Co-Takers ... 20
X OUTLINE
2. Classic per Stirpes ... 23
3. Per Capita at Each Generation ... 24
E. Non-Marital, Posthumous, and Adopted Children ... 24
1. Non-Marital Children ... 25
a. Expanding the Definition of Legitimacy ... 25
b. Statutory Trends Permitting Non-Marital Children to Inherit ... 26
c. Constitutional Rights of Non-Marital Children to Inherit ... 27
d. Disinheritance of Non-Marital Children by Will ... 28 2. Posthumous Children ... 28 3. Adoptions ... 30 a. Traditional Adoptions ... 31 b. Virtual Adoptions ... 32 c. Inheritance-Motivated Adoptions ... 33 F. Bars to Succession... 35 1. Disclaimer ... 35
2. Divorce and Bigamy ... 36
3. Murder or Manslaughter ... 37
Chapter 2.Rights of the Spouse and Children ... 41
A. Summary of Spousal Rights ... 41
1. Quarantine ... 41
2. Homestead and Exempt Property ... 42
3. Family Maintenance Allowance ... 42
4. Small Estate Legislation ... 43
5. Dower, Curtesy, or Statutory Equivalents ... 43
B. Who Is a Widow or Widower? ... 46
C. Pre-Marital Wills ... 48
OUTLINE XI
E. Test Knowledge on Pretermission ... 54
Questions ... 54
Answers ... 57
Chapter 3.The Statute of Wills ... 63
A. Introduction ... 63
B. Formal Wills ... 64
1. New York Estates, Powers & Trusts Law § 3–2.1 ... 65
2. Uniform Probate Code § 2–502 ... 66
3. Analysis of Requirements... 66
a. Wills Must Be in Writing ... 67
b. Exceptions to the Written Requirement ... 68
c. Subscribed and Signed at the End ... 68
d. Signature by Another for the Testator .... 70
e. Presence of the Testator ... 71
f. Signing or Acknowledging ... 72
g. At the Same Time ... 73
h. Number of Witnesses ... 73
i. Request by the Testator ... 73
j. Sign “His” Name ... 74
k. Addresses for Witnesses ... 74
C. Witnesses to a Formal Will ... 74
D. The “Interested” Witness ... 75
E. Holographic Wills ... 78
1. “Handwriting” ... 79
2. “Entirely” ... 80
3. “Signed” ... 81
4. “Dated” ... 81
F. Strict vs. Liberal Interpretation ... 83
G. Testamentary Intent ... 83
1. Letter Wills ... 84
XII OUTLINE
3. Mock Wills and Sham Wills ... 87
H.Will Contests: Incapacity, Fraud, Undue Influence ... 89
1. Incapacity ... 91
2. Fraud ... 93
3. Undue Influence ... 95
Chapter 4.Revoking and Changing Wills ... 99
A. Revocability ... 99
B. Intentional Revocations ... 100
C. Revocation by Writing: Express and Implied ... 102
D. Revocation by Act ... 104
E. Partial Revocation by Act ... 106
F. Revocation by Operation of Law ... 107
G. Lost Wills ... 108
H.Revival ... 110
I. Dependent Relative Revocation ... 112
1. Theories and Approaches ... 112
2. Interaction with Other Wills Doctrines ... 115
Chapter 5.Will Components ... 117
A. Codicils... 117 B. Integration ... 119 1. External Integration ... 119 2. Internal Integration ... 120 C. Republication... 121 D. Incorporation by Reference ... 125
E. Independent Legal Significance ... 128
Chapter 6.Beneficiaries ... 131
A. Introduction ... 131
OUTLINE XIII
1. Aliens, Animals, Charities, Corporations
and Felons ... 132
2. Death of the Beneficiary ... 134
3. Renunciation (Disclaimer)... 139
4. Slayers as Beneficiaries... 140
a. Legal Theories ... 140
b. Type of Slaying ... 142
c. Type of Property ... 143
C. Testator’s Action: Contracts to Make a Will ... 145
D. Joint Action of Testator and Beneficiary ... 148
1. No-Contest (“In Terrorem”) Clauses ... 148
2. Conditional Bequests, Equitable Charges and Elections ... 151
a. Conditional Bequests ... 151
b. Equitable Charges ... 152
c. Elections ... 153
3. Property Settlement Agreement ... 153
4. Advancements and Ademption by Satisfaction ... 154
5. Set-Off (Retainer)... 157
Chapter 7.Estate Property ... 159
A. Types of Bequests and Devises ... 159
1. Specific Bequests or Devises ... 159
2. Demonstrative Bequests ... 160
3. General Bequests and Devises ... 161
4. Residual Bequests and Devises ... 163
B. Abatement ... 164
C. Accretion ... 166
D. Ademption by Extinction ... 168
E. Exoneration ... 175
XIV OUTLINE
Chapter 9.Creation of Trusts ... 181
A. Trusts Contrasted to Wills ... 181
B. Defining a “Trust” ... 181
C. Contrasting a Trust Against Other Relationships ... 184
1. Agency vs. Trust ... 184
2. Custodianships vs. Trusts ... 186
3. Personal Representatives vs. Trusts ... 186
4. Bailments vs. Trusts ... 187
5. Power of Appointments vs. Trusts ... 188
6. Security Arrangements vs. Trusts ... 190
7. Contracts vs. Trusts... 191
8. The Imperfect Gift vs. Trust ... 192
D. Quiz on Trusts vs. Other Relationships ... 193
Questions ... 193
Answers ... 193
Chapter 10.Elements of a Trust ... 195
A. The Transfer ... 195
B. Trust Res/Property ... 201
C. Quiz on the Trust Res ... 201
Questions ... 201
Answers ... 203
D. The Settlor ... 207
E. The Trustee ... 209
F. The Beneficiary ... 216
1. Private Trust Beneficiaries ... 218
a. Capacity ... 218
b. Unincorporated Association ... 219
c. Class Gifts—Construction ... 220
d. Class Gifts—Ascertainability of Members ... 221
e. Class Gift—Partial Ascertainability ... 222
OUTLINE XV 3. Charitable Trusts... 225 a. Charitable Purposes ... 226 i. Poverty ... 226 ii. Education ... 228 iii.Religion ... 228 iv.Governmental ... 229
v. Generally Beneficial to the Community ... 230
b. Cy Pres ... 232
i. A Trust ... 233
ii. Evidencing General Charitable Intent ... 233
iii.Which Was Initially Valid ... 234
iv.Becomes Impossible, Illegal or Impractical, or Wasteful ... 234
c. Enforcement of Charities (Standing) .... 235
4. Mixed Charitable and Non-Charitable Purposes ... 236
5. Honorary Trusts ... 238
a. Dead Persons ... 238
b. Animals ... 239
c. Capricious Purposes ... 240
G. Explanation of Trust Classifications ... 241
1. Passive and Active Trusts ... 242
2. Resulting (Implied), Constructive and Express Trusts ... 242
3. Legal and Illegal Trusts ... 244
4. Testamentary and Inter Vivos (Living) Trusts... 245
5. Revocable and Irrevocable Trusts ... 246
6. Spendthrift, Support, and Discretionary Trusts... 247
XVI OUTLINE
b. Support Trusts ... 249
c. Discretionary Trusts ... 249
7. Funded and Unfunded Life Insurance Trusts... 250
8. Massachusetts Business Trusts and Illinois Land Trusts ... 251
9. Totten and Farkas v. Williams Trusts ... 253
Chapter 11.Trustee Powers and Duties ... 257
A. In General ... 257
B. Powers of the Trustee ... 258
1. Sales, Leases and Mortgages ... 259
2. Investments, Improvements and Exchanges ... 262
3. Discretionary Powers ... 263
4. Deviation ... 264
C. Duties of the Trustee ... 266
1. Loyalty (Duty Not to Self-Deal) ... 266
2. Duty to Administer ... 273
3. Duty to Make Productive Investments ... 274
4. Duty to Earmark (Not to Commingle), Nominees ... 281
5. Duty to Account ... 286
6. Delegation of Duties ... 290
7. Duty to Diversify ... 291
8. Duty of Impartiality ... 293
9. Breaches of Trustee Duties ... 294
a. Duty ... 295
b. Breach ... 295
c. Causation ... 295
d. Defenses ... 296
OUTLINE XVII
ii. Statutory Authority for Deviation from Traditionally Required Fiduciary
Practices ... 297
iii.Court Permission ... 297
iv.Express Consent of All Beneficiaries ... 297
e. Damages ... 298
D. Quiz on Trustee Duties ... 299
Questions ... 299
Answers ... 300
Chapter 12.Trust Administration Problems ... 301
A. Successive Beneficiaries (Principal and Income) ... 301
1. Principal and Income Generally ... 302
2. Traditional Principal and Income Issues ... 304
a. Expenses ... 304
b. Probate Administration Income ... 305
c. Interest, Bond Premium and Discount ... 305
d. Dividends and Other Corporate Distributions ... 306
e. Rents, Depreciation Reserves ... 307
f. Wasting Assets, Depletion ... 308
g. Unproductive and Underproductive Assets ... 309
3. Changes Made by the Current Principal and Income Act ... 309
4. Liabilities Among Beneficiaries ... 311
B. Beneficiaries Versus Trustees ... 312
1. Remedies for Beneficiaries ... 312
2. Trustee Expenses and Fees ... 316
XVIII OUTLINE
C. Rights of Third Parties ... 321
1. Trustee Liability to Third Parties ... 321
a. Classic Approach ... 321
b. Uniform Trust Code § 1010 ... 323
2. Beneficiary Liability to Third Parties ... 324
3. Third Party Liability to Trust ... 324
D. Termination or Modification of a Trust ... 328
Chapter 13.Probate Administration ... 331
A. Jurisdiction over Wills and Trusts... 331
1. Letters ... 331
2. Inventory and Appraisal ... 332
3. Claims by Creditors ... 332
4. Death Tax ... 332
5. Accounting ... 333
6. Receipts and Discharge ... 333
B. Probate Court Jurisdiction over Incapacitated Persons ... 334
1. Powers of Attorney Can Avoid Probate Court Jurisdiction ... 334
2. Jurisdictional Conflicts over Guardianship ... 338
