changing circumstances persons
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Changing Circumstances Persons. Marriage. Common Law Marital Property States – The Forced or Elective Share. Protects surviving spouse from disinheritance Choice between: Gifts in will, and Statutory share Replaces dower and curtesy . - PowerPoint PPT PresentationTRANSCRIPT
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Changing Circumstances
Persons
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Marriage
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Common Law Marital Property States – The Forced or Elective Share
Protects surviving spouse from disinheritance
Choice between: Gifts in will, and Statutory share
Replaces dower and curtesy.
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Common Law Marital Property States – The Forced or Elective Share
Computation varies among the states: Straight percentage Percentage that varies depending
on number of children Percentage based on length of
marriage
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Common Law Marital Property States – The Forced or Elective Share
Augmented Estate Include in computation value of
non-probate assets that pass to others▪ Survivorship rights in land▪ Contractual rights (bank accounts, life
insurance, etc.)▪ Property gifted inter vivos
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Community Property Marital Property StatesSurviving spouse already owns
50% of community property.
Thus, deceased spouse’s will can only dispose of 50% of the community.
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Changing CircumstancesPersons
[continued]
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Impact of Divorce on WillCommon law = none
Modern law = all provisions in favor of ex-spouse ineffective Beneficiary Executor Trustee Guardian of children
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Divorce issues
Where does property left to ex-spouse go?
What about gifts to other ex-relatives?
What if will written (or treated as written) after divorce?
What if divorce pending?
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Pretermitted Heirs
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Potential to receive a forced shareBorn or adopted after will
execution = most states
Born or adopted before will execution = only a few states Mistaken belief of death Unknown birth
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Determination of Forced ShareSignificant jurisdictional
variation.
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Typical situations where no share1. Intentional omission
“I make no provision for any child born after I execute this will.”
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Typical situations where no share2. Testator provided for child
Class gift to children Non-probate asset
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Typical situations where no share3. Entire estate to pretermitted
child’s other parent
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Lapse
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Lapse defined
Gift fails (lapses) because beneficiary dies before testator.
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Distribution of Lapsed Gifts
1. Under express terms of will.
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Distribution of Lapsed Gifts
2. Saved by legal rule.
Private Gift – Anti-lapse statute
Charitable Gift – Cy pres doctrine
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Distribution of Lapsed Gifts
3. Via residuary clause.
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Distribution of Lapsed Gifts
4. Via intestacy.
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Anti-Lapse Statutes
1. Save gift for descendants of deceased beneficiary.
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Anti-Lapse Statutes
2. Jurisdictions vary regarding relationship needed between testator and beneficiary to trigger anti-lapse statute.
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Partial Lapse in Residuary ClauseFact Pattern:
“I leave remainder of my estate to A, B, and C.”
A dies before Testator. Anti-lapse statute is inapplicable.
Issue: Who gets A’s share?
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Partial Lapse in Residuary Clause“I leave remainder of my estate to A, B, and C.”
Orthodox View
Passes by intestacy.
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Partial Lapse in Residuary Clause
“I leave remainder of my estate to A, B, and C.”
Modern View Imply survivorship language.
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Ways to avoid anti-lapse statuteProvide alternate gift in will.
Require survival in will.
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Cy Pres
Method of saving lapsed charitable gifts.
Testator must have general charitable intent.
Gift saved for equitably equivalent charity.
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Survival
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Issue
Does an beneficiary need to outlive the testator by a certain length of time?
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Policies
Prevent multiple administrations of property.
Avoid proof problems and gruesome evidence.
Carry out intent.
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Time Period
By statute = 120 hours (5 days) is typical
Express terms of the will often extend period to 30, 60, or 90 days.
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Where does property go?As if beneficiary who did not
survive long enough died first.
In other words, follow the lapse analysis even though beneficiary biologically survived.