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56 Cards in this Set
- Front
- Back
Estate Planning |
The process of planning for management in the transfer of wealth when the estate holder becomes incapacitated |
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Estate |
wealth, property, anything you own |
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Property |
anything that can be owned; property is rights |
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Real Property |
land and any attachments to the land |
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personal property |
anything that is not permanently attached to the land |
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easement |
right to cross a person's property (these restrictions can affect the value of the property) |
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intangible property |
does not have physical characteristics; its value is derived from the rights it grants to the owner |
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Fee Simple |
the highest form of ownershipq |
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Life estate |
the right to use, possess, and enjoy property, but only based on a lifetime (your life or another's) -can't be transferred after death -value is indefinite
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Estate for years |
the right to use, possess, and enjoy property for a period of time less than a lifetime (if death occurs than the interest is transferred to the owner's beneficiaries) |
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2 types of future interest |
Remainder & Reversion |
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Reversion Interest |
future interest in a property that is retained by the transferor after transferring a life estate or estate for years to the transferee |
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Remainder Interest |
a future interest in property that a transferor transfers to a transferee and then after termination to another person (A---B---C) *no reversion to transferor |
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Vested |
without any conditions or precedent; absolute |
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contingent |
depends on some factor; not certain to happen |
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single person ownership |
single man or woman; single= never been married |
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unmarried |
you have been married before (divorced, not widowed) |
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Tenants in common |
two or more people owning property together - most common - own a specific percentage, but have right to enjoy entire property |
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Joint tenancy |
must be equal ownership, *right of survivorship* |
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unilateral severance |
one person can sever a joint tenancy; the amount of ownership freezes and they no longer have right of survivorship |
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tenants by the entirety |
Not in CA; has right of survivorship and is only available to married couples, no unilateral severance |
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community property |
exclusive to married couples; presumed if acquired after marriage |
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exceptions to CP presumption |
1. property owned before marriage 2. property inherited or gifted |
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comingling |
SP becomes CP if it can not be traced back to the original source |
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transmutation |
changing the character of the property through a written agreement |
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Quasi-Community Property |
property acquired during marriage while domiciled in a non-CP state |
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Community Property with Right of survivorship |
Merge CP w/ JT |
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Power of attorney |
an individual gives the right to another individual to act as a representative |
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general power of attorney |
has the power to enter into anything that is stated in a document |
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Durable power of attorney |
power to do estate planning for the principal and survives incapacity |
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surrogates |
alternate decision makers, one who acts on behalf of another when there is no durable power of attorney (usually family) |
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statutory surrogate |
a decision maker that is selected by the patient at the time of the situation (trumps durable power of attorney) |
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primary beneficiary |
specifically named person or entity to receive property by a will, trust or contract |
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alternative beneficiary |
person who will receive the primary beneficiary dies first |
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lifetime beneficiary |
have a life estate |
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remainder beneficiary |
receives the property in fee after the lifetime beneficiary |
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specific beneficiary |
named to receive specific items of property |
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residuary beneficiary |
receives anything that is leftover after specific beneficiaries |
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beneficiaries at law |
someone who receives a portion of the estate by law |
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testamentary capacity |
1. understand nature of testamentary act 2. understand nature and extent of testator's property 3. must know next of kin and the impact of the dispositions on them |
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written witnessed will |
1. must have 2 witnesses (not beneficiaries) 2. signed by testator 3. words of testamentary intent |
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statutory will |
1. 2 witnesses 2. pre-printed with fill-in-the-blanks |
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international wills |
created by people who live in a different country, require extra certification |
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holographic will |
handwritten: 1. must be written by testator 2. must be signed 3. property must be named 4. beneficiaries must be named |
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nuncupative will |
oral will; not recognized in CA |
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electronic wills |
videos/recordings/emails-not valid |
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pertinent clauses in wills |
1. words of testamentary intent 2. identify family 3. nominate an executor 4. identify specific gifts and specific beneficiaries 5. residuary clause |
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codocil |
amendment to a will |
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revocation of a will |
1. create a new will 2. destroyed/mutilated 3. missing wills 4. at law- divorced and didn't change it |
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Testate succession |
distribution by a will or trust |
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intestate succession |
when there is no will or trust, there is a set of laws that specify how your property is distributed |
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escheats |
when an heir cannot be found, the property is transferred to the state |
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requirements for step child to inherit |
1. became a step-child as a minor 2. remained a step-child until death of decedent 3. healed out as "child" 4. never adopted for a legal reason |
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per stirpes distribution |
specific procedure for transferring estate after death with no will or surviving spouse (each living child or issue receives a share) |
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per capita |
(testate succession only) each person that is a taker will get an equal share |
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per capita at each generation per stirpes |
each living child or issue receives an equal share based on line of descent |