Business Law
Chapter 40Chapter 40
Wills and IntestacyWills and Intestacy
“Where There is a Will There is aWay”“Where There is a Will There is aWay”
What is a Will?
A legal document written while someone isalive that indicates what they wish to havedone with their possessions when they die.A legal document written while someone isalive that indicates what they wish to havedone with their possessions when they die.
Writing a Will
Wills may be written with or without the aidof an attorney.Wills may be written with or without the aidof an attorney.
Only one copy should be signed. That copyshould be kept in a secure place with atrusted individual.Only one copy should be signed. That copyshould be kept in a secure place with atrusted individual.
You cannot will items you do not own.You cannot will items you do not own.
Writing a Will
Example:Example:
“To Joel, a student in my business lawclass I leave the sum of One MillionDollars.”“To Joel, a student in my business lawclass I leave the sum of One MillionDollars.”
I don’t have a million dollars, so itwould not be possible to execute onthis will.I don’t have a million dollars, so itwould not be possible to execute onthis will.
Changing a Will
A will can be changed at any time simplyby writing a new one.A will can be changed at any time simplyby writing a new one.
A will can also be amended.A will can also be amended.
Amendments are called a codicil.Amendments are called a codicil.
A Will Should be in Writing
To be legally accepted a will must be inwriting.To be legally accepted a will must be inwriting.
Some states limit how much property canbe distributed based upon oral wills.Some states limit how much property canbe distributed based upon oral wills.
The Will must be signed in front ofwitnesses.The Will must be signed in front ofwitnesses.
The signature can be anywhere on thedocument.The signature can be anywhere on thedocument.
A Will Should be in Writing
A Holographic Will is one written in thehandwriting of the deceased.A Holographic Will is one written in thehandwriting of the deceased.
The term for the individual is the testator.The term for the individual is the testator.
No witnesses are required for aHolographic Will.No witnesses are required for aHolographic Will.
There can be many copies made of a will,but only one should be signed.There can be many copies made of a will,but only one should be signed.
Carrying Out a Will
The person in charge of meeting the termsof the will is the Executor or ExecutrixThe person in charge of meeting the termsof the will is the Executor or Executrix
After the testator dies the will is filed forprobateAfter the testator dies the will is filed forprobate
Probate is the court-supervised procedurethat proves or validates the will.Probate is the court-supervised procedurethat proves or validates the will.
Intestacy
If some dies without a will they are said tohave died in intestate.If some dies without a will they are said tohave died in intestate.
The laws of the state determine thedistribution of the property.The laws of the state determine thedistribution of the property.
The person in charge of this type of estate isthe Administrator.The person in charge of this type of estate isthe Administrator.
Intestacy
Although laws vary by state here are some generalrules:Although laws vary by state here are some generalrules:
The spouse gets ½ or 1/3 of any personalpropertyThe spouse gets ½ or 1/3 of any personalproperty
The balance is then divided equally among thechildren.The balance is then divided equally among thechildren.
If a child dies their share is divided among thegrandchildrenIf a child dies their share is divided among thegrandchildren
Adopted children have the same rights asnaturally born children.Adopted children have the same rights asnaturally born children.
Spousal Rights
In some states you cannot disinherit aspouseIn some states you cannot disinherit aspouse
These laws vary by state and manystates have different rules for widowsand widowersThese laws vary by state and manystates have different rules for widowsand widowers
Rights of Children
If a child can prove that their omissionin a will was unintentional they canreceive a full share of the estate.If a child can prove that their omissionin a will was unintentional they canreceive a full share of the estate.
If the omission was intentional thenthe child will get nothing.If the omission was intentional thenthe child will get nothing.
How do you prove intent?
To my son Michael who always had his hand outbut was never around when there was work to bedone.To my son Michael who always had his hand outbut was never around when there was work to bedone.
To my son who spent 15 years in college getting afour-year degree. To my son who wrecked thefamily car and ran up $ 20,000 on my charge cardtreating his friends.To my son who spent 15 years in college getting afour-year degree. To my son who wrecked thefamily car and ran up $ 20,000 on my charge cardtreating his friends.
To my son Michael who said I would neverremember him in my will…..To my son Michael who said I would neverremember him in my will…..
Hello Michael!Hello Michael!
That’s all folks!
Quiz TuesdayQuiz Tuesday