Wills and Inheritance

Inheritance Law Inheritance Law (sometimes called Wills and Probate) is concerned with the distribution of a person’s property following their death Inheritance Law (sometimes called Wills and Probate) is concerned with the distribution of a person’s property following their death This may occur either in accordance with the provisions of a will, or under applicable rules relating to intestacy (when a person dies without having made a will) This may occur either in accordance with the provisions of a will, or under applicable rules relating to intestacy (when a person dies without having made a will)

Will ‘Last will and testament’ ‘Last will and testament’ The document by which a person directs what should happen to their property after their death The document by which a person directs what should happen to their property after their death

Making of a will A will must be made of free will, without coercion and it must be: A will must be made of free will, without coercion and it must be: 1) in writing, 1) in writing, 2) signed by the testator (the person making the will), and 2) signed by the testator (the person making the will), and 3) witnessed by at least two witnesses 3) witnessed by at least two witnesses

Validity of a will The testator must be over 18 when the will is made and of sound mind The testator must be over 18 when the will is made and of sound mind The will must appoint one or more persons to carry out the terms of the will (executors) The will must appoint one or more persons to carry out the terms of the will (executors)

Beneficiaries (legatees) Persons who inherit property under a will Persons who inherit property under a will The property of a deceased person is known as their estate The property of a deceased person is known as their estate It may comprise land and real estate (real property or realty) and all other property (personal property or personalty) It may comprise land and real estate (real property or realty) and all other property (personal property or personalty)

Revocation and alteration of wills A will can be revoked or altered in the following ways: A will can be revoked or altered in the following ways: 1. By making a new will that makes it clear that the previous will(s) are revoked 1. By making a new will that makes it clear that the previous will(s) are revoked 2. By destruction of the previous will 2. By destruction of the previous will 3. By marriage or divorce 3. By marriage or divorce 4. By amendment (an attached codicil) 4. By amendment (an attached codicil)

Life interest A bequest which stops when you die (f.e. the right to live in a house for your lifetime) A bequest which stops when you die (f.e. the right to live in a house for your lifetime) When you die, the house etc. becomes the property of the ‘remainderman’ named in the will When you die, the house etc. becomes the property of the ‘remainderman’ named in the will The person who is given a life interest is called the ‘life-tenant’ The person who is given a life interest is called the ‘life-tenant’

Residue What is left to distribute from the estate once all the debts and taxes have been paid What is left to distribute from the estate once all the debts and taxes have been paid

Why it is important to make a will If you die without a will (die intestate), there are rules which dictate how your estate should be allocated If you die without a will (die intestate), there are rules which dictate how your estate should be allocated Unmarried partners cannot inherit from each other unless there is a will Unmarried partners cannot inherit from each other unless there is a will If you have children, arrangement for the children should be made if either or both parents die If you have children, arrangement for the children should be made if either or both parents die

What should be included in a will How much money and what property and possessions you have How much money and what property and possessions you have Who you want to benefit from your will Who you want to benefit from your will Who should look after any children under 18 (a guardian) Who should look after any children under 18 (a guardian) Who is going to sort out the estate and carry out your wishes as set out in the will (executors) Who is going to sort out the estate and carry out your wishes as set out in the will (executors)

Intestacy To die intestate To die intestate In that case, the person’s property is distributed in accordance with the intestacy rules In that case, the person’s property is distributed in accordance with the intestacy rules The order of priority (family) – heirs by intestacy or legal heirs The order of priority (family) – heirs by intestacy or legal heirs

Probate The official document which confirms that the will is valid and states who the executors are The official document which confirms that the will is valid and states who the executors are Generally, the term probate is used to refer to the various laws and courts which deal with wills, intestacy, inheritance and disputes over estates Generally, the term probate is used to refer to the various laws and courts which deal with wills, intestacy, inheritance and disputes over estates

Vocabulary Testator – oporučitelj Testator – oporučitelj Executor – izvršitelj oporuke Executor – izvršitelj oporuke Beneficiary (legatee) – nasljednik Beneficiary (legatee) – nasljednik Guardian - skrbnik Guardian - skrbnik Real estate – nekretnine Real estate – nekretnine Revocation of a will – opoziv oporuke Revocation of a will – opoziv oporuke Alteration of a will – izmjena oporuke Alteration of a will – izmjena oporuke Life interst – doživotno pravo uživanja posjeda Life interst – doživotno pravo uživanja posjeda Bequest – ostavština, oporučni dar, nasljedstvo Bequest – ostavština, oporučni dar, nasljedstvo

Vocabulary II To die intestate – umrijeti bez oporuke To die intestate – umrijeti bez oporuke Intestacy – nepostojanje oporuke Intestacy – nepostojanje oporuke Heir by intestacy – zakonski nasljednik Heir by intestacy – zakonski nasljednik Probate – sudska ovjera oporuke Probate – sudska ovjera oporuke Probate court – ostavinski sud Probate court – ostavinski sud

Vocabulary exercise Complete the following passage: Complete the following passage: A will should name an estate ___________ to guide the estate through the ___________ process. A will should also name a ____________ if there is a minor child involved. In the absence of a valid will, the _____________ decides who will inherit the property and distributes it to the legal __________ based on the laws of the state. A will should name an estate ___________ to guide the estate through the ___________ process. A will should also name a ____________ if there is a minor child involved. In the absence of a valid will, the _____________ decides who will inherit the property and distributes it to the legal __________ based on the laws of the state.

Answer key A will should name an estate EXECUTOR to guide the estate through the PROBATE process. A will should also name a GUARDIAN if there is a minor child involved. In the absence of a valid will, the PROBATE COURT decides who will inherit the property and distributes it to the legal HEIRS based on the laws of the state.