Trusts & Estates Essentials Power Point Slides Class #1: 8-12-19 National Middle Child Day

1. Trusts & Estates EssentialsPower Point Slides Class #1: 8-12-19National Middle Child Day Music to Accompany Everman: Paul Simon, Still Crazy After All These Years (1975) Please do not sit in the two seats closest to the walls on each side in the first row. All other seats OK.

2. Trusts & Estates Essentials: Logistics • MATERIALS/ COURSE PAGE • Like Bar Prep • Operation of Class • Coverage Overview • Q re Today’s Assignment (& Going Forward) • Casebook, Florida Statutes, My Supplement • Detailed Syllabus, Forthcoming Assignments, Power Point Presentations

3. Trusts & Estates Essentials: Logistics • Materials/ Course Page • LIKE BAR PREP • Operation of Class • Coverage Overview • Originally Designed for Students Taking Bar within a Year, but God Practice/Warning Regardless • Final Exam Like Multistate • Completely Closed Book Multiple Choice • Must Memorize Key Doctrine & Statutes • 6-8 Week Time Frame (Probably Week After Fall Break; if so Last Class will be Wed 10/2 not Mon 9/30 (= Rosh Hashanah))

4. Trusts & Estates Essentials: Logistics • Materials/ Course Page • LIKE BAR PREP • Operation of Class • Coverage Overview • Final Exam Like Multistate. To Help: • Req’d Participation re Selected Problems& Qs to Keep You on Track & Focus on Key Concerns (Map to Grades) • At End of Each Chapter I Post • Syllabus with Indication of Exam Emphasis • Sample Multiple Choice Qs w Answers & Explanations • Many of Your Test Qs from Samples

5. Trusts & Estates Essentials: Logistics • Materials/ Course Page • LIKE BAR PREP • Operation of Class • Coverage Overview • Types of Qs I Like: Thomas married only one person, Debbie Sue, during his lifetime. When they married, Debbie Sue already had one child, Cindy, from a prior relationship. Debbie Sue died in 2011. Thomas died intestate in 2018 survived by no blood relations close enough in kinship to be intestate heirs. At the time Thomas died, Cindy and Debbie Sue’s nephew Norbert were still alive. Under which set of rules would Cindy inherit all of Thomas’s estate? • (a) Under the Florida statutes but not the UPC. • (b) Under the UPC but not the Florida statutes. • (c) Under both the UPC and the Florida Statutes. • (d) Under neither the UPC nor the Florida Statutes.

6. Trusts & Estates Essentials: Logistics • Materials/ Course Page • LIKE BAR PREP • Operation of Class • Coverage Overview • Types of Qs I Like: All of the following definitions are correct, except …? • (a) A “beach-bum trust” is one in which the distributions are determined by the amount of the beneficiary’s own earnings. • (b) “Fraud in the execution” occurs when a wrongdoer intentionally misleads a person about the contents of a document... • (c) A “just debts” provision in a will directs the executor to pay off only debts incurred by the testator before death (as opposed to subsequent expenses). • (d) An “insane delusion” is a belief that is so against the evidence and reason that it must be the product of derangement.

7. Trusts & Estates Essentials: Logistics • Materials/ Course Page • LIKE BAR PREP • Operation of Class • Coverage Overview • Types of Qs I Like (My Value Added): Douglas executed his final will six days before he died using a form provided by a commercial software program. The will left 25% of his estate to his housekeeper Maeda. Douglas’s daughter challenged the will claiming that Maeda had exerted undue influence. All of the following facts, if true, would support the undue influence claim, except…? • (a) Douglas had executed several prior wills after Maeda came to work for him. None of these wills left anything to Maeda. • (b) Douglas’s daughter had not visited him in more than three years. • (c) Maeda helped Douglas prepare the final will with computer software she had purchased. • (d) The witnesses to the will were Maeda’s relatives.

8. Trusts & Estates Essentials: Logistics • Materials/ Course Page • Like Bar Prep • OPERATION OF CLASS • Coverage Overview • My Eyes  Use Assigned Seats • 10 Minute Break Roughly 9:50-10 • Absences & Lateness • Max 3 Absences after Add Deadline (Classes 4-12) (No “Excused” Unless Extended Health or Family Problems) • Lateness = 1/3 of Absence plus Wait for Signal to be Seated (Traffic = Gravity) • Missing Half of Class = Half an Absence

9. Trusts & Estates Essentials: Logistics • Materials/ Course Page • Like Bar Prep • OPERATION OF CLASS • Coverage Overview • Majority of Class Time = Lecture w Slides • Cases: Unlike my other classes, cases in this class primarily serve as examples of the operation of particular doctrines. I will clearly indicate any cases I’d like you to be able to work with as authorities in more detail.

10. Trusts & Estates Essentials: Logistics • Materials/ Course Page • Like Bar Prep • OPERATION OF CLASS • Coverage Overview • Selected Problems & Discussion Qs Assigned to Groups of Students • Problem Notation: 4:3 = Problem III in Chapter 4 • Assignments Divided Alphabetically by Last Names Switched Up Every Week • Often will be assigned for class period after material is introduced. • Repeated Unpreparedness Negatively Affects Grade

11. Trusts & Estates Essentials: Logistics • Materials/ Course Page • Like Bar Prep • Operation Of Class • COVERAGE OVERVIEW • UNIT ONE: BASELINES (Chapters 1-2) • UNIT TWO: WILLS (Chapters 3-6) • UNIT THREE: TRUSTS (Chapters 8-9) • UNIT FOUR: OUTSIDE OF THE WILL (Chapters 7 & 10) (As time allows)

12. Vocabulary Slides: Set #1 • Decedent: Person who died (in this course, the person whose property is being distributed). • Devise: Transfer of property at death through a will. • Intestacy: Transfer at death of property not disposed of by a valid will. • Escheat: If no relative can be found that meets the legal definition of "heir“ (i.e., that is listed as a possible recipient under the state’s intestacy statute), the property will pass to the state through the process called “escheat.” • .

13. Vocabulary Slides: Set #1 • Heirs: The person(s) who receive a decedent’s property under the relevant intestacy statute. • Because your likely heirs might die at any time, you cannot have actual heirs until the moment you die. • Until then, we refer to the likely recipients as “presumptive heirs” and call their interest “a mere expectancy.” • This “Expectancy” can fail if: • Decedent makes a will and does not include the heir • Decedent dies without a probate estate • Heir predeceases the decedent • Etc.

14. Vocabulary Slides: Set #1 • Consanguinity: Closeness/proximity of blood relatives (See chart on p.49 of textbook). • Issue: Lineal descendants (i.e., children, grandchildren, etc.). In this context, issue is a collective noun, so your two children and eight grandchildren together are your “issue” (not issues) • Collateral Heirs: A successor to property who is neither an ancestor nor directly descended from the decedent but comes from a parallel line of the deceased's family, such as a brother, sister, uncle, aunt, niece, nephew, or cousin.

15. UNIT ONE: BASELINES CHAPTER 1: OVERVIEW

16. Section 1.1: Introduction & Section 1.2: Testamentary Freedom (Generally) • Trusts and Estates (T&E) deals with gratuitous transfers of property (transfers without consideration). • (Casebook p2) “[T]he field's first principle is freedom of testamentary disposition: that testators (people who make wills) and settlors (people who make trusts) enjoy ‘the nearly unrestricted right to dispose of their property as they please.’ Restatement (Third) of Property: Wills & Other Donative Transfers §10.1, comment a.” • Major themes of T&E arise from importance of testamentary freedom.

17. Section 1.1 & Section 1.2 Course Themes • When is gift truly grantor’s intent? (Often Hard Q if grantor is deceased) • Was gift really voluntary? Did grantor have sufficient mental capacity to make the gift? • How do we ensure documents are authentic (formalities, etc.) • Extrinsic evidence of intent (evidence not found in the governing documents) : when allowed & how evaluated?

18. Section 1.1 & Section 1.2 Course Themes • Use of default rules & presumptions to fill in gaps & explain language. • Accounting for passage of time (e.g., between drafting & operation of will) • Regulating costs of administration of donative instruments • When should a decedent’s preferences yield to the needs of the living? (focus of 1.2.1)

19. Section 1.2: Testamentary Freedom1.2.1 State Law (Limits on Freedom) • Relatively few substantive limits on Testamentary Freedom in State law • Protection of Surviving Spouses (see chapter 7) & Creditors • Limits on Duration of Dead Hand Control (Rule against Perpetuities as Modified (Quite Limited)) • “Public Policy” Limits: Impermissible Instructions & Conditions (Today/Wednesday)

20. Unacceptable Conditions Conditions So Abhorrent …

21. Unacceptable Conditions Conditions So Abhorrent … You Can’t Even Impose Them on Your Own Children

22. Unacceptable Conditions Total Restraint on Alienation Partial Restraint OK if “Reasonable” Most Restrictions Restrain Alienation to Some Extent If too burdensome/weird could treat as too much restraint (b/c nobody will purchase) Maybe: “so long as the owner sleeps on the parcel every night.”

23. Unacceptable Conditions Total Restraint on Alienation Doing Criminal Acts “To Sydney if she murders Tiffany”

24. Unacceptable Conditions Total Restraint on Alienation Doing Criminal Acts Total Restraint on Marriage: Generally Barred “Reasonable” partial restraints generally allowed E.g., “So long as she doesn’t marry until she turns 25” We’ll explore with Shapira & Problem 1.1

25. Unacceptable Conditions Total Restraint on Alienation Doing Criminal Acts Total Restraint on Marriage: Generally Barred Encouraging Divorce (Evil In-Laws Grant): “To Sansa so long as she divorces Tyrion”

26. Unacceptable Conditions Total Restraint on Alienation Doing Criminal Acts Total Restraint on Marriage: Generally Barred Encouraging Divorce (Evil In-Laws Grant): Grant Penalizing Divorce Seems to be OK “To Sansa for Life, but if she divorces Tyrion, to Jon”

27. Unacceptable Conditions Total Restraint on Alienation Doing Criminal Acts Total Restraint on Marriage: Generally Barred Encouraging Divorce Commonly Protected Characteristics Race-Based Limitations (Clearly Unenforceable) Sex-Based Upheld (OK At Least w/in Family or to Sex Segregated Institution (e.g., convent or girls’ school) Religion: (We’ll Discuss w Shapira)

28. Unacceptable Conditions You are responsible for this list (syllabus will reference) Total Restraint on Alienation Doing Criminal Acts Total Restraint on Marriage: Generally Barred Encouraging Divorce Commonly Protected Characteristics Questions?

29. Shapira v. Union National Bank • Referenced in casebook • We’ll do in more detail because: • Good case to see number of relevant concerns when state is using “reasonableness” test • Nicely sets up Problem 1.1 • I have taught in my Property course • Some students here have studied • I have follow-up problems and multiple choice Qs

30. Shapira v. Union National Bank • Upholds Grant Requiring Testator’s Sons to Marry Jewish Girls • Wednesday: • Last Names O-Z Questions after Shapira • Last Names A-C: Problem 1:1 (W4 = Casebook p. 4)

31. 1.2.1 State Law: Everman & “Public Policy” as Limit on Testamentary Freedom The term “public policy” cannot be comprehensively defined in specific terms but the phrase “against public policy” has been characterized as that which conflicts with the morals of the time and contravenes any established interest of society.… REACTION?

32. 1.2.1 State Law: Everman & “Public Policy” as Limit on Testamentary Freedom The term “public policy” cannot be comprehensively defined in specific terms but the phrase “against public policy” has been characterized as that which conflicts with the morals of the time and contravenes ANY established interest of society.…

33. 1.2.1 State Law: Everman &Instructions to Destroy Property • Will Provision: Personal Representative “…to cause our home at 4 Kingsbury Place…to be razed and to sell the land upon which it is located…and to transfer the proceeds of the sale…to the residue of my estate.” • Court strikes down because • Against interests of beneficiaries, neighbors, City of St. Louis (Historic Preservation) • No apparent benefit to anyone • Capricious, eccentric, extravagant

34. 1.2.1 State Law: Everman &Instructions to Destroy Property • Will Provision: Personal Representative “…to cause our home at 4 Kingsbury Place…to be razed and to sell the land upon which it is located…and to transfer the proceeds of the sale…to the residue of my estate.” • “[T]his senseless destruction serving no apparent good purpose is to be held in disfavor. A well-ordered society cannot tolerate the waste and destruction of resources when such acts directly affect important interests of other members of that society.…”

35. 1.2.1 State Law: Everman &Instructions to Destroy Property • Will Provision: Personal Representative “…to cause our home at 4 Kingsbury Place…to be razed and to sell the land upon which it is located…and to transfer the proceeds of the sale…to the residue of my estate.” • After Death v. While Alive? (Recurring Q) • Note if Historic Preservation Significant, City could Ban Destruction. • Neighbors would have No Legal Rights • Court might assume that O of sound mind would not, but cf. Calif. Real Estate Boom)

36. 1.2.1 State Law: Everman &Instructions to Destroy Property • Will Provision: Personal Representative “…to cause our home at 4 Kingsbury Place…to be razed and to sell the land upon which it is located…and to transfer the proceeds of the sale…to the residue of my estate.” • Possible Stories • Rare disease caused by the structure? • Built by ex-husband, whom she hated? • Thought it was haunted? • Other? • Make Sense of Beneficiaries or City Not Joining Suit?

37. 1.2.1 State Law (for Wednesday) Last Names D-n: Problem 1:2 (W9) • Kafka: Destroy all unpublished manuscripts. • Sendak: Destroy “all of my personal letters, journals and diaries.” • A. Relevant Differences between Kafka & Sendak? • D. Relevant Differences between these and provision in Everman? • E. Instruction to re-purpose country residence into a charitable nonprofit museum, with specific instructions to leave all furnishings and decorations in place permanently and never to alter the physical structure?

38. Section 1.3: Sources of Law, Probate Courts & Probate Administration • Mostly Self-Explanatory • Four Distinctions you Need to Know • Primary Jurisdiction (Domicile) v. Ancillary Jurisdiction (Real Property in Different Jurisdiction) • Informal v. Formal Probate • Probate Estate v. Net Probate Estate • Probate v. Non-Probate Property (More Details in Chapter 10)