Estate Planning

what is probate

a court supervised process for settling a decedent's estate

what is a holographic will

a hand written will

what is a dower

widows right to a life estate in a portion of her husbands property

what is a nuncupative will

wills declared by a testator during last illness before a sufficient number of witnesses and later put into writing

what are the executors duties

1. prove validity of the will, 2.notify creditors of death, 3.locate and identify the decedents property and determine the property's value and collect benefits and income, 4. manage the decedents estate throughout the probate process, 5. pay debts taxes and expenses 6. distribute assets to heirs

people with an estate that exceed ____ in 2015

5,430,000

what is JTWROS with spouse

50% of prop fmv is included in gross estate, surviving spouse new basis is 1/2 of the cost plus the decedents stepped up basis

what is gross estate

All property that is subject to federal estate taxes upon death is known as your

what are the methods of property transfer by contract

life insurance, trust property, and retirement assets

how can a will be contested

Can be initiated by pretermitted heirs or aggrieved parties during the probate process,

what is the role of the financial planner in the estate planning process

Determine whether the estate has a federal or state estate tax liability Review wills, trusts, assets and deeds to ensure that bequests and titles of ownership are coordinated Review insurance policies for sufficient coverage and estate liquidity needs Explain the tax and non-tax aspects of the estate plan to the client.

what is the powers clause

Grants specific powers and authority to an executor or trustee of a testamentary trust

which types of ownership avoid probate

JTWROS and tenancy by the entirety

what are the methods of property transfer by operation of law

JTWROS, tenancy by the entirety, joint bank accounts, government savings bonds, pod accounts, tod accounts

what is curtesy

The rights that a husband acquires in the wife's property upon her death.

what does ancillary probate mean

applies to out of state property

what is a homestead statute

are the rights and protections to a surviving spouse

what is per capita

beneficiaries inherit equally

what is per stirpes

beneficiaries may receive unequal shares

how can ancillary probate be avoided

by placing a trust on the property

what are the quasi-community property states

california, idaho, arizona, washington, wisconsin

what is JTWROS non spouse

can contribute unequal amounts to acquire prop, The survivor's new basis is his original basis plus the amount included in the decedent's estate.

what are the disadvantages of probate

delays, expenses, and privacy issues

what is a pour-over will

designates a trust to receive the remainder of the estate

what is the introductory clause

determines state of domicile, revokes prior wills, and can execute a codicil

general bequest

disposes of a certain amount or value of property

residual bequest

disposes of all property that has not been disposed of by specific or general bequest

what property rights are available to a surviving spouse

dower, curtesy, homestead statue, family allowance

what is a mutual will

each party agrees to bequeath a particular property to another

what are the characteristics of community property

each spouse has a vested interest in one half of the property acquired during marriage, property held outside a trust must pass by will or intestacy, property goes through probate unless it is placed in trust

what is a reciprocal will

each spouses will leaves property to the survivor

what is tenancy in common

each tenant owns a separate, fractional interest in same property, decedents property must pass by will or intestacy

fiduciary designated under a will to serve as a clients personal representative

executor

who are fiduciaries?

executors, trustees, guardians, and agents

what is sole ownership

lifetime control, property passed by will or intestacy, fmv of property is included in owners gross estate, property is subject to probate

what is JTWROS

have equal ownership, can sever the joint tenancy without the consent of the other owners, interest can be reached by creditors, at death automatically passed to surviving tenant

capacity vs competency

have to have capacity but dint have to have compentence

what are community property assets

homes, personal property, investment property, bank accounts, and life insurance policies

where is personal property probated

in the decedents state of domicile

where is real property probated

in the state where it is located

what is tenancy by the entirety

jointly owned, Decedent spouse includes 50% of property's FMV in his gross estate, Surviving spouse's new basis is one-half of acquisition cost plus decedent's stepped up basis, protected from creditors

which property is transferred by contract

life insurance proceeds, pension plans and iras, annuities with joint annuitants, nuptial agreements, buy/sell agreements

what is a fiduciary

must place a beneficiary's interests first, before his own. Fiduciaries have the authority to perform special acts or specific duties for others.

what trusts avoid probate

naming a beneficiary, proper titling of assets, and setting up a trust fund, (irrevocable and revocable trusts)

what supersede wills

nuptial agreements

what is a joint will

one will is created for both people

what are the exceptions to community property

property acquired before marriage, property one spouse acquired by gift, and property one spouse acquired by inheritance

what are substitutes for a will

property that passes by operation of law, contracts with beneficiary designations, and trusts

what are the advantages of probate

protects creditors by ensuring debts are paid, bars future creditor claims against the estate, and validates the title of property

what is the ademption statutes

provides an alternative when an asset no longer exists

what is abatement statutes

provides for an alternative distribution of estate assets

what is a family allowance

provides surviving spouse with money from decedents estate to pay for living expenses

what types of ownership are subject to probate

sole ownership and tenancy in common

what are the methods of property transfer by will or intestacy

sole ownership, tenancy in common, and community property,

what are the types of bequests

specific, general, and residual

what are the community property states

texas, louisiana, nevada, new mexico, and alaska

specific bequest

the tangible personal property of the testator

a fiduciary who holds title to the trust assets and manages them on behalf of the beneficiaries according to the terms specified in the trust instrument

trustee