RIGOS BAR REVIEW SERIES UNIFORM MULTISTATE ESSAY EXAM (MEE) REVIEW CHAPTER 5 TRUSTS, WILLS, AND ESTATES

Magic Memory Outlines I. II. INTRODUCTION TYPES OF TRUSTS A. Express Trusts 1. Instrument Controls 2. Specific Directions 3. Accounting Designation 4. Distribution Decisions a. Distribution Discretion b. Corpus Invasion B. Implied Trusts 1. Resulting Trust 2. Constructive Trust a. Wrongdoing Remedy b. Secret Trusts C. Utility of Entity 1. Reduce Estate Taxes 2. Living Trust 3. Protect Assets 4. Avoid Probate REQUIRED TRUST ELEMENTS SIT PA A. Settlor / Donor / Grantor / Trustor B. Intent to Properly Create 1. Objective Manifestation 2. Mere Desire 3. Impermissible Purpose C. Trustee 1. Capacity 2. Appointment 3. Merger D. Property / Res 1. Specific Identity 2. Future Interest E. Ascertainable Beneficiaries 1. Acceptance Not Required 2. Future Family Beneficiaries 3. Class Beneficiaries

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a. Indefinite Class b. Defined Selection c. Remainder Class d. Surviving Heirs 4. Animal Beneficiaries IV. TRUST ORGANIZATION FORMATION A. Promise to Create B. Inter Vivos Trust C. Testamentary Trust D. Modification/Revocation of Trusts 1. Must Reserve Power 2. By Agreement 3. Petition for Judicial Proceeding a. Interested Party Required b. Notification Required c. Court Action 4. Non-Judicial Resolution of Disputes E. Uniform Transfers to Minors Act F. Rule Against Perpetuities (RAP) Compliance 1. Period Begins 2. RAP Applied a. Example b. Distinguish 3. Violating Portion 4. Result 5. Class Gifts 6. Gifts to Charities 7. Wait and See Rule 8. Fertile Septuagenarians and Test Tube Babies TRUSTEES RESPONSIBILITIES AND LIABILITY PIN CALL A. Properly Administer 1. Prudent Business Person Investment Standard a. Two Trustees b. Three or More Trustees 2. Preserve Principal and Diversification 3. Productivity of Assets and Speculation 4. Total Asset Management Standard B. Inform Beneficiaries C. Not Delegate Decisions D. Commingling of Assets Not Allowed E. Account to Beneficiaries F. Litigate on Behalf of Trust G. Loyalty to Trust SOB 1. Self-Dealings 2. Opportunity of Trust 3. Borrowing from the Trust

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H. Liability of Trustee 1. Beneficiaries Enforce 2. Trustee Removal 3. Prior Trustee, Co-Trustee, and Agents 4. Trustees Defenses a. Instrument Exculpatory Provisions b. Consent c. Statute of Limitation or Laches VI. BENEFICIARIES AND CREDITORS RIGHTS A. Beneficiary Ownership Rights 1. Transfer Rights 2. Instrument Alienation Restrictions B. Creditors of Beneficiaries 1. Spendthrift Trust 2. Support Trust 3. Discretionary Trust 4. Exceptions a. Necessity b. Family Support c. Taxes d. Self-Serving Trusts e. Fraudulent Transfers

VII. CHARITABLE TRUSTS A. Registration and Enforcement B. Exempt from RAP C. Cy Pres Doctrine VIII. THIRD PARTY LIABILITY A. Claim Against Trust B. Claims Against Trustee 1. Contracts 2. Torts C. Claim Against Beneficiary D. Third Party Liability to Trust IX. TRUST TERMINATION A. Consolidation and Merger B. Term Expiration C. Purpose Accomplished, Illegal, or Impossible D. Merger E. Income Interest Terminates F. Donor Termination G. Court Petition 1. Beneficiaries Request 2. Spendthrift Provision 3. Settlor and Beneficiaries Request

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WILLS A. Traditional Formal Wills 1. Requirements SIT MA a. Signed b. Intent c. Testamentary Age d. Mental Capacity POT e. Attested to 2. Courts Equitable Power 3. Components of a Will a. Integration b. Incorporation by Reference 4. Interpretation Issues a. Identification of Beneficiaries b. Independent Significance c. After-Acquired Property d. Doctrine of Worthier Title e. Rule in Shelleys Case f. Cy Pres Doctrine 5. Taker Problems a. Disinheritance b. Adopted and Half-Blood Children c. Omitted (Pretermitted) Surviving Children d. Born out of Wedlock e. Divorce and Annulment f. Omitted Later Spouse g. Lapsed Devise h. Disclaimer i. Class Beneficiaries j. Surviving Heirs k. Devise to Issue l. Power of Appointment Taxation m. Slayers and Abusers 6. Property Problems a. Ademption b. Accession c. Exoneration d. Satisfaction 7. Codicils a. New Scheme b. Republish by Reference 8. Revocation a. Effect on Earlier Wills b. Codicil Effect c. Partial Revocation d. Dependent Relative Revocation (DRR) B. Oral (Noncupative) and Handwritten (Holographic) Wills C. Conditional Wills

D. Contract to Make a Devise E. Mutual or Joint Wills F. Family Restrictions on Disposition 1. Spouse 2. Children 3. Past Obligations XI. WILL CHALLENGES A. Grounds To Contest 1. Failure to Adhere to SIT MA Creation Formalities 2. Capacity Absent 3. Fraud in the Execution 4. Fraud in the Inducement 5. Undue Influence LOAF a. Large Devise b. Opportunity c. Active Participation d. Fiduciary B. Dead Mans Statute C. In Terrorem Clauses D. Previous Will Revived

XII. UNIFORM SIMULTANEOUS DEATH ACT XIII. INTESTATE SUCCESSION A. Advancement B. Marital or Community Property C. Separate Property D. Determining Shares for Issue 1. Per Stirpes 2. Per Capita a. Per Capita with Representation b. Per Capita at Each Generation E. Collateral Relatives F. Escheatment XIV. RELATED DOCUMENTS A. Power of Attorney 1. Introduction 2. Creation 3. Scope 4. Excluded Powers B. Medical Powers 1. Health Care Directive 2. Living Will C. Organ Donation Directives XV. PROBATE PROCEEDINGS A. Jurisdiction and Venue

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1. Original Jurisdiction 2. Ancillary Administration 3. Matters Covered 4. Court Determinations Alternatives to Probate 1. Insurance Policies and Pension Plans 2. Joint Tenancies 3. Pay-on-Death Accounts 4. Trust Res a. Advantages b. Disadvantages 5. Pour-Over Wills Procedure 1. Personal Representative (PR) a. Designated or Appointed b. Fiduciary Role 2. Admission to Probate a. Petition Contents b. Will Contest Disclosure c. Lost or Destroyed Wills d. Non-Intervention Powers 3. Creditors a. Notice and Claim b. Claim Approval and Rejection c. PR Personal Liability Traditional Administration Functions Insolvent Estate Priority 1. Costs of Administration 2. Funeral and Last Illness Expenses 3. Family Maintenance 4. Taxes 5. Judgment Debts 6. Unsecured Debts 7. Beneficiaries Abatement Taxation