Will Substitutes

Question 1

What is the general relevance of will substitutes?

Answer 1

If a person wants to transfer property at time of death, he must comply w formal requirements for making a will.

HOWEVER –> settlor may make certain inter vivos transfers without the formalities of a will

Question 2

Are inter vivos life insurance trusts valid?

Answer 2

Yes, despite absence of significant res during settlor’s lifetime

Question 3

What is a Totten trust bank account?

Answer 3

“totten trust bank account” - depositor declares himself trustee of the account for a person who is to receive the money at time of depositor’s death

• depositor retains full control of money during lifetime.
• these accounts are not really trusts bc they do not separate legal and equitable title, nor do they meet the formal requirements of wills

Totten trust is revocable by:

1. withdrawal of funds
2. any lifetime act manifesting intent to revoke
3. UNLIKE JOINT ACCOUNTS, any specific contradictory provision in a will

NOTE –>

1. totten trust does not protect funds from creditors
2. terminates if beneficiary pre-deceases depositor

Question 4

Uniform Transfers to Minors Act (UTMA) (come back to) - p 22

Answer 4

COME BACK TO