Trusts, Wills & Probate Flashcards

What is the primary estate-planning purpose of a 'generation-skipping trust' (GST)?

Answer: To transfer wealth to grandchildren or later generations while potentially reducing estate taxation at the children's generation

A generation-skipping trust transfers assets to grandchildren or skip persons, potentially avoiding estate tax at the children's generation and utilizing the federal GST tax exemption.

What is the primary purpose of a 'durable power of attorney' for financial matters?

Answer: To authorize a designated agent to manage the principal's financial affairs if the principal becomes incapacitated

A durable power of attorney remains valid (or springs into effect) upon the principal's incapacity, empowering the named agent to handle financial and legal matters on the principal's behalf.

What is 'undue influence' as a ground to invalidate a will?

Answer: Improper pressure or coercion that overcomes the testator's free will, resulting in a will that does not reflect their genuine intentions

Undue influence occurs when a person exerts such pressure on the testator that their independent judgment is overcome, making the will the product of the influencer's wishes rather than the testator's.

What does the 'doctrine of lapse' provide in will law?

Answer: A bequest fails if the named beneficiary predeceases the testator, unless an anti-lapse statute or the will provides otherwise

Under the doctrine of lapse, a gift to a beneficiary who dies before the testator generally fails, falling back into the residuary estate unless an anti-lapse statute saves it by substituting the beneficiary's descendants.

What is a 'Totten trust' (payable-on-death bank account)?

Answer: A bank account held in trust for a named beneficiary who receives the balance upon the depositor's death without probate

A Totten trust (POD account) passes the account balance directly to the named beneficiary at the depositor's death, bypassing probate while the depositor retains full control and access during life.

Under the Uniform Probate Code, what makes a will 'self-proved'?

Answer: Sworn affidavits of the testator and witnesses are attached at execution, eliminating the need for witness testimony during probate

A self-proved will includes affidavits executed contemporaneously by the testator and witnesses before a notary, which substitute for in-court witness testimony and streamline the probate process.

What is the legal distinction between a 'specific bequest' and a 'general bequest' in a will?

Answer: A specific bequest identifies a particular item of property, while a general bequest is satisfied from the estate's general assets without designating specific property

A specific bequest designates an identified piece of property (e.g., 'my 1965 Mustang'), while a general bequest — such as a fixed dollar amount — is payable from the estate's general assets and is not tied to any particular item.