Law for Business, 15e by Ashcroft Chapter 45: Wills, Inheritances, and Trusts Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning 1 1 1 1

2002 West Educational Publishing Chapter 45 Objectives Describe a will, its characteristics, and limitations on disposition of property. Explain formalities required for executing wills. Name the ways in which a will may be changed. Discuss the requirements for probate and administration. Recognize a trust and the parties to a trust. 2002 West Educational Publishing To accompany Law for Business, 14e, by Ashcroft and Ashcroft

Terms Common to Wills A will provides for the disposition of a person’s belongings after death. The testator (man) or testatrix (woman) makes and signs the will. A devisee receives a gift of real property. A legatee receives a gift of personal property. A bequest is a gift of personal property.

Formalities of a Will A will can be typewritten, printed, or handwritten. Two to three people must witness a will. If a will is incorrectly prepared, the courts could disregard the will entirely and distribute property in accordance with state laws.

Special Types of Wills Holographic will Nuncupative will Written entirely by the hand of the testator. Nuncupative will An oral will declared by the testator before witnesses. Sometimes called “death bed wills.” Soldiers’ and sailors’ wills Members of the armed forces are not required to comply with the usual formalities.

Codicils A codicil is a separate writing that modifies a will. If a testator destroys a will, it is revoked. If a single person makes a will and later marries, the marriage revokes the will. The execution of a later will revokes the prior one if they conflict. If a child is born after a will is made, the will may be revoked or partially revoked.

More Features of a Will Abatement occurs when a testator makes bequests of money and does not have enough money to pay the bequests. Ademption occurs when a testator makes a bequest for specific property and the estate does not have the property at death. Probate is the court procedure that determines the validity of a will.

Trusts Activity Activity Activity Activity What is a trust? How is it used? How is a trust created? Explain the following special kinds of trusts: Express trusts Resulting trusts Constructing trusts Blind trusts Testamentary trusts TRUST

The End! We hope you have enjoyed this learning experience and have come away knowing more about business law.