Wills and Inheritance

Wills and Inheritance Unit 24

Preview • Definitions: inheritance, will • Conditions for a validwill: form, substance • Testamentarycapacity • Beneficiaries • Estate, assets • Challenging a will • Intestacy • Legal terms

Inheritance Law • 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 a will)

Will • A document by which a person directs what should happen to their property after their death

Will • A will must be made: • 1) in writing, • 2) signed by the testator (the person making the will), • 3) witnessed by at least two witnesses

Validity of a will • The testator must: • 1. have testamentary capacity • 2. make the will of his own free wishes without any undue influence

Testamentary capacity • The ability to make a legally valid will • Persons under 18 years of age and mental patients do not have testamentary capacity

Testamentary capacity • The testator must: • 1. Understand the nature of the document • 2. The property of which he is disposing • 3. The persons who have a natural claim to provision from his estate • 4. The manner in which he provides for his estate to be distributed

Undue influence • Influence that prevents someone from exercising an independent judgement with respect to any transaction

Undue influence • A will may be held invalid if it is shown that the testator made it under undue influence • It must be shown that unfair advantage has been taken of another person

Beneficiaries • Persons who inherit property under a will • The property of a deceased person is known as their estate

Estate • The aggregate of all the property to which a person is beneficially entitled. • It covers not only tangible property, but also debts, and any rights capable of being reduced to a monetary value

Revocation and alteration of wills • 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 • 2. By destruction of the previous will • 3. By marriage or divorce • 4. By amendment (an attached codicil)

Challenging of a will • A will may be challenged on the grounds that: • it was not properly executed • the testator lacked testamentary capacity • it has been revoked • it was fraudulent • undue influence

Intestacy • The state in which a person dies without having made a will disposing of all his property • To die intestate

Intestacy • In that case, the person’s property is distributed in accordance with the intestacy rules • The order of priority reflects the importance accorded to familial relationships: the surviving spouse is given the larger share of the estate

Probate • 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

Freedom of disposition vs. forced heirship • Freedom of disposition – common law countries • Forced heir(ship) – civil law countries – a person whom the testator or donor cannot disinherit because the law reserves part of the estate for that person

Points to remember Definitionofwill Conditions for a validwill Testamentarycapacity

Legal terms • Testator • Oporučitelj • Executor • Izvršitelj oporuke • Beneficiary • Oporučni nasljednik • Heir • Zakonski nasljednik

Legal terms • Legator • oporučitelj • Legatee • Oporučni nasljednik • Pecuniary legatee • Nasljednik koji nasljeđuje gotovinu

Legal terms • Testamentary capacity • Oporučna sposobnost • Testamentary disposition • Oporučno raspolaganje

Legal terms • Estate • Ostavinska masa, imovina umrle osobe, ostavina • Bequest • A gift by will of property other than land

Legal terms • Assets • All real and personal property that forms part of the deceased’s estate and is available for the payment of the deceased’s debts; property which can be turned into cash • Imovina; ostavina; aktiva

Legal terms • Legacy • A gift of personal property by will; oporučni dar • Pecuniary legacy • Novčano nasljedstvo • Reversion • Vraćanje (prava, posjeda); prijenos ostavine

Legal terms • Probate • Ovjerena oporuka, sudska ovjera oporuke, ovjereni prijepis pravovaljane oporuke • Probate proceeding • Ostavinski postupak, ostavinska rasprava

Legal terms • Probate action • Ostavinska tužba

Legal terms • Execution of will • Izvršenje oporuke • Revocation of will • Opoziv oporuke • Revoke a will • Opozvati oporuku

Legal terms • Intestacy • Nepostojanje oporuke • To die intestate • Umrijeti bez oporuke • Intestate heir • Zakonski nasljednik

assets, draft, estate, testament A lastwilland ___is a legal documentthatdeclares how an ___or propertywillbemanagedafterthewriter’s death. Although it is notthe most pleasantsubject to approach, it is essential for people to ___a will to ensurethattheir ___are handledin a satisfyingway.

Key A lastwilland testament is a legal documentthatdeclares how anestate or propertywillbemanagedafterthewriter’s death. Although it is notthe most pleasantsubject to approach, it is essential for people to draft a will to ensurethattheirassets are handledin a satisfyingway.

Investments, minor, party, property For thosewith __children, it is crucial to declare how ___or money willbeused to provide for thesechildren. For thosewith ___or accumulatedsavings, it is important to state thename a responsible ___ who willmanagethesefunds.

Key For thosewithminorchildren, it is crucial to declare how property or money willbeused to provide for thesechildren. For thosewithinvestments or accumulatedsavings, it is important to state thename a responsibleparty who willmanagethesefunds.

beneficiaries, donations, debts, executor Generally, a last will and testament should contain the name of an ___, information relating to one’s burial, payment of any___, any charitable___, bequests to ___and the list of the powers of the executor.

Key Generally, a last will and testament should contain the name of an executor, information relating to one’s burial, payment of any debts, any charitable donations, bequests to beneficiaries and the list of the powers of the executor.

revokes, testator, validity, will witnesses Additionally, a will must be typed or printed, signed by the maker, or ___and signed by ___who can attest tothe ___ of the document. A __must state that the testator ___any previous wills or amendments to such previous wills.

Key Additionally, a will must be typed or printed, signed by the maker, or testator, and signed by witnesses who can attest to the validity of the document. A will must state that the testator revokes any previous wills or amendments to such previous wills.

Capacity, demonstrate, duress, testator The ___must demonstrate that the document wasnotcreatedunder ___or provocation. In other words, the testator must ___that the will was created willingly and freely by an individual with the mental___ to do so.

Key The testator must demonstrate that the document was not created under duress or provocation. In other words, the testator must demonstrate that the will was created willingly and freely by an individual with the mental capacity to do so.

beneficiaries, debts,executing, party, probate The will must name the ___or parties responsible for ___ the document under the supervision of the ___court. The will should name any ___and their entitlements. In addition, the will should explain how any outstanding ___will be paid.

Key The will must name the party or parties responsible for executing the document under the supervision of the probate court. The will should name any beneficiaries and their entitlements. In addition, the will should explain how any outstanding debts will be paid.

Wills and Inheritance