Week 4 Class Notes - Test 1

Question 1

One thing you might not actually need to know about people is their (1). This is important for trusts, but with wills, (2). The exception is if there are lots of (3)

Answer 1

1. bank info
2. finances change by death
3. specific bequests

Question 2

A (1) is a gift given while alive because one is dying. One given within (2) will be presumed to be this. This has the effect of bringning the gift back into the estate for (3). (4) may prevent this.

Answer 2

1. gift given in contemplation of death
2. three years
3. taxation purposes
4. unexpected cause of death (e.g., gift given because of disease, but you get hit by a bus)

Question 3

Lots of questions are asked of the testator’s (1) or (2) after the testator’s death

Answer 3

1. personal representative

2. family

Question 4

Powers of appointment, without giving (1), give the beneficiary the ability to (2). Can be useful if the testator (3) or if he wants (4). This is a (5) asset. A limited one means (6) and a general one means (7).

Answer 4

1. ownership
2. designate whom the property goes to
3. does not want to decide
4. the fortune to continue past the next generation (e.g., via a trust)
5. taxable
6. the list of whom the property can be designated to is limited
7. anyone can receive the property

Question 5

spouse gets tax-free assets from the will

Answer 5

unlimited marital deduction

Question 6

A testamentary trust may never go into effect because (1)

Answer 6

1. it may refer to “minor” children who have since become adults

Question 7

The executor to an estate gets a fee which can be (1). Often done for (2)

Answer 7

1. waived

2. spouses, etc., inheriting under the will anyway

Question 8

Beneficiaries may disclaim inherited property, but may not (1). This may be done if (2) or if (3). A (4) is not necessary.

Answer 8

1. decide who the property goes to
2. the beneficiary has large debts (inheritance will just go to creditors)
3. they want the money to pass to their children
4. disclaimer clause