Wills Trusts Estates

Wills Trusts Estates Attack Outline

Approaching a Wills Trusts Estates exam requires a clear understanding of key concepts such as testamentary formalities, the doctrines of intestate succession, and the administration of trusts. Identify and analyze legal issues starting from the facts presented in the exam question.

Testamentary Formalities

Issue Checklist

  • Check for valid will execution requirements (e.g., signed, witnessed)
  • Identify the presence of a holographic will
  • Determine if testamentary capacity is satisfied
  • Assess whether undue influence exists

Key Rules

To be valid, a will must be in writing, signed by the testator, and witnessed by at least two individuals.

A holographic will does not require witnesses if the material provisions are in the testator's handwriting.

Testamentary capacity requires that the testator understand the nature of the act, the extent of their property, and the identity of the beneficiaries.

Common Issues

  • Will contested due to failure to meet formalities
  • Claims of undue influence by potential heirs
  • Challenges based on lack of capacity
Intestate Succession

Issue Checklist

  • Identify the decedent's relatives and their relationship to the decedent
  • Examine state-specific intestacy laws
  • Check for any pretermitted heirs
  • Assess any community property considerations

Key Rules

Intestate succession distributes property according to state statutes to surviving spouses, children, and relatives.

A pretermitted heir may claim a share of the estate if they were born after the will was executed but ignored in distribution.

Community property laws dictate that spouses own jointly acquired property.

Common Issues

  • Property distribution disputes among surviving relatives
  • Claims of rights of adopted children or spouses
  • Disputes over the classification of property as community or separate
Trusts

Issue Checklist

  • Determine whether a trust was created
  • Identify the settlor, trustee, beneficiary, and property
  • Examine trust terms for revocability or irrevocability
  • Assess for any breaches of fiduciary duty

Key Rules

A valid trust requires a clear intent to create a trust, a definite subject matter, and identifiable beneficiaries.

Trusts can be revocable or irrevocable depending on the grantor’s intent.

Trustees owe fiduciary duties to the beneficiaries, including loyalty and prudence.

Common Issues

  • Trustee mismanagement of trust assets
  • Disputes over the validity of trust amendments
  • Inclusion of beneficiaries in will versus the trust
Will Contests and Litigation

Issue Checklist

  • Assess the standing of contestants to challenge the will
  • Identify grounds for contesting a will (e.g., improper execution, lack of capacity)
  • Examine if there are any no-contest clauses
  • Evaluate the availability of undue influence or fraud claims

Key Rules

Individuals with standing include those who would inherit under intestacy laws if the will were invalid.

No-contest clauses will penalize beneficiaries challenging the will.

Fraud in the inducement can invalidate a will if the testator was misled about the terms.

Common Issues

  • Challenges based on ambiguous language in the will
  • Issues regarding the validity of oral wills
  • Disputes stemming from familial disagreements over the estate
Charitable Trusts

Issue Checklist

  • Identify the charitable purpose of the trust
  • Determine if the beneficiaries are sufficiently identifiable
  • Examine the potential for cy pres doctrine application
  • Assess compliance with the Uniform Prudent Investor Act

Key Rules

Charitable trusts are created for a public purpose and can have indefinite beneficiaries.

The cy pres doctrine allows modification of a charitable trust when the original purpose is no longer feasible.

The trustee must adhere to standard of care and investment restrictions for charitable trust assets.

Common Issues

  • Challenges to the validity of charitable intent
  • Disputes over the application of cy pres
  • Trustees failing to act in accordance with prudent investment standards
Disinheritance

Issue Checklist

  • Examine how disinheritance affects potential heirs
  • Check for any statutory protections for disinherited spouses or children
  • Assess validity of disinheritance clauses in wills
  • Investigate if waivers are in place for forfeiture

Key Rules

Disinheritance is permitted, but state laws may require specific language to disinherit a child.

Statutory protections often exist for spouses to prevent complete disinheritance.

Clear and unequivocal language is necessary in wills to disinherit a beneficiary.

Common Issues

  • Surviving spouses claiming rights to the estate despite disinheritance
  • Children contesting their disinheritance
  • Ambiguous disinheritance provisions leading to litigation
Elective Share and Spousal Rights

Issue Checklist

  • Determine if an elective share is applicable
  • Assess spousal rights to exempt property and family allowances
  • Evaluate the impact of a waiver or prenuptial agreement
  • Check for any community property implications

Key Rules

Surviving spouses may elect to take a statutory share of the estate instead of what the will provides.

Exempt property and family allowances protect certain assets for the surviving spouse.

Prenuptial agreements can waive rights to an elective share.

Common Issues

  • Disputes over volume of spousal rights post-death
  • Claims made against the estate under the elective share provisions
  • Ambiguities in waivers affecting claims against the estate
Lifetime Transfers and Gifts

Issue Checklist

  • Identify any lifetime gifts made by the decedent
  • Examine implications of the gift tax and annual exclusion
  • Check for any retention of control by the donor post-transfer
  • Assess if gifts were conditional or absolute

Key Rules

Gifts during the decedent's lifetime may affect the value of the estate at death.

Lifetime gifts up to the annual exclusion may not incur gift tax.

Conditional gifts must fully comply with the terms to be effective.

Common Issues

  • Challenges regarding claims of incomplete gifts
  • Disputes involving revocable versus irrevocable gifts
  • Confusion between gifts and loans leading to estate dispute
Exam Approach

Structure your answers by clearly identifying the legal issues, applying relevant rules to the facts, and concluding with the likely outcome based on analysis. Ensure each element of the applicable rules is addressed in response to the question.

Time Management

Allocate roughly 50 minutes for each essay question in a 3-hour exam, ensuring ample time for reviewing and revising your answers. Prioritize the most heavily weighted questions first.

Mnemonics
  • WITNES - Wills, Intestate, Trusts, Negate (as in disqualification), Elective Share
  • CAPACITY - Capacity, Acceptance, Property description, Intent, Trustee duties, Yield (to beneficiaries)
Common Pitfalls to Avoid
  • Failing to analyze all parts of the question thoroughly
  • Overlooking important statutory provisions or common law rules
  • Neglecting the impact of state-specific variations in wills and trusts law

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