Other Intestacy Issues
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Transcript of Other Intestacy Issues
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Other Intestacy Issues
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Ancestral Property
Does source of property impact identity of heirs?
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Advancements
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Basic Idea
Prepayment of inheritance.
Thus, must account for it when intestate dies.
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How prove gift is advancement?
Jurisdictions differ but modern approach is to require a writing:
1. Contemporaneous writing of advancer (intestate decedent), or
2. Written acknowledgment by advancee (heir).
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Value given to advanced property?Date of advancement
Not when advancer (the intestate) dies.
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Advancement Example
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Advancement
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Advancee predeceases advancer
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Advancement Problem
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Advancement Problem
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Survival
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Issue
Does an heir need to outlive the intestate 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
120 hours (5 days) is typical
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Where does property go?As if person who did not survive
long enough died first.
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Disclaimers
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Reasons to Disclaim
1. Onerous Burdens
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Reasons to Disclaim
1. Onerous Burdens
2. Tax Savings
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Possible Reasons to Disclaim1. Onerous Burdens
2. Tax Savings
3. Avoid creditors (except IRS)
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Typical Requirements
1. Disclaimer Document
a. Written, and
b. Acknowledged.
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Typical Requirements
2. Proper Filing
a. When = 9 months after decedent’s death
b. Where = in court where probate proceedings pending
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Typical Requirements
3. Notice to personal representative typically by
a. Personal service, or
b. Registered or certified mail.
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Basic Disclaimer Principles1. Wills, life insurance policies,
etc. may provide disclaimer methods and designate who receives disclaimed property.
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Basic Disclaimer Principles2. Irrevocable
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Basic Disclaimer Principles3. Partial disclaimers (“cherry-
picking”) allowed.
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Basic Disclaimer Principles4. Acceptance precludes later
disclaimer.
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Basic Disclaimer Principles5. Disclaimed property passes
as if disclaimant predeceased decedent.
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Release and Conveyance of
Expectancy
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What can you do with expectancy to inherit from a person still alive?
Convey?
Contract to convey?
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Equitable Conversion
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Basic Idea
Real property treated as personal property, or
Personal property treated as real property.
Example = between (1) signing of real property sales contract and (2) closing
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How does inheritance pass if an intermediary predeceases?
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Heir Designation
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Choice of Law – Marital RightsLaw of spouse’s domicile at time
of property acquisition.
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Choice of Law – Succession RightsPersonal Property = Domicile at
death
Real Property = Situs of Property