1. 45.1 b a c kn e x t h o m e Chapter 45 Objectives Describe a will, its characteristics, and the 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 PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

2. 45.2 b a c kn e x t h o m e 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. Bequest is a gift of personal property.

3. 45.3 b a c kn e x t h o m e Formalities of a Will  Does a will have to be typewritten?  How many people must witness a will?  What could happen to the property subject to a will if it is incorrectly prepared?  No - it can be handwritten.  Two to three.  The courts could disregard the will entirely. Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz

4. 45.4 b a c kn e x t h o m e Special Types of Wills Holographic 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.

5. 45.5 b a c kn e x t h o m e 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.

6. 45.6 b a c kn e x t h o m e 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.

7. 45.7 b a c kn e x t h o m e Trusts 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 Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss