Hathaway-AA02
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Kansas City Kansas Community College *
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0140
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Law
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Feb 20, 2024
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Last Name 1
Shelby Hathaway
Mrs. Huggins
BUSN-0206
02/16/24
Chapter 26: Estates and Trusts
Introductory Problem
George, an elderly widower, has no children of his own but enjoys a
very close relationship with his two stepdaughters, his late wife’s
children by her first marriage. George’s only living blood relative is his
brother, from whom he has been estranged for many years. George
has a substantial amount of property—his home, two cars, stocks and
bonds, rental property, bank accounts, and a valuable collection of
baseball cards. Though retired, George is an active volunteer for, and
supporter of, several community charities and organizations. Presently,
George does not have a will, but he is considering writing one.
In the event that George passes away intestate—that is, without a will—the intestacy rules of the state in which he resides will probably govern the disposal of his assets. Since George lives in Kansas, the state's intestacy laws would be relevant. Usually, surviving spouses and blood relatives have priority in distribution under intestacy laws. Given that George is an old widower without children and that his estranged brother is the only living blood relative, his property would probably be divided in accordance with Kansas's intestacy rules in
favor of his brother.
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Introductory Problem Questions
1.
What will happen to George’s property upon his death if he does not have a will at the time?
2.
What are the requirements for executing a valid will?
3.
What can cause a will to be invalid?
4.
After George’s death, how would his estate be probated?
5.
If George decided to create a trust to benefit his stepdaughters, what is required to create a trust, and what are the legal duties of a trustee? What are the ethical duties of a trustee?
Introductory Problem Answers
1.
In the event that George passes away intestate—that is, without a will
—the intestacy rules of the state in which he resides will probably govern the disposal of his assets. Since George lives in Kansas, the state's intestacy laws would be relevant. Usually, surviving spouses and blood relatives have priority in distribution under intestacy laws. Given that George is an old widower without children and that his estranged brother is the only living blood relative, his property would probably be divided in accordance with Kansas's intestacy rules in favor of his brother.
2.
State-specific criteria differ, but in general, a will needs to be in writing, signed by the testator (the person drafting the will) in front of
witnesses, and signed by witnesses again in front of the testator. A
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legitimate will, for instance, needs to be witnessed by two or more credible parties in Kansas.
3.
A will may be deemed invalid for a number of reasons, such as the testator's lack of testamentary competence (being mentally unable), fraud, forgery, poor execution, revocation, and undue influence. A judge may rule that the will is invalid if any of these conditions are met.
4.
Probate would probably be required for George's estate after his passing. Managing a deceased person's estate legally, including paying
taxes and obligations and allocating assets to recipients or heirs, is known as probate. A will, if any, must be filed with the probate court. Next, an executor or personal representative must be appointed. Assets must be inventoried, debts and taxes must be paid, and any remaining assets must be distributed in accordance with the terms of the will or intestacy laws. The exact steps involved in the probate process can vary based on the size and complexity of the estate.
5.
George would have to give his property to the trust and name beneficiaries to receive the trust's assets in order to establish a trust. A trustee's legal responsibilities include overseeing the trust's assets, making wise investments, allocating principle and income to beneficiaries in accordance with the terms of the trust agreement, maintaining correct records, and working in the beneficiaries' best interests. Furthermore, trustees have a fiduciary duty to treat
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beneficiaries fairly, loyally, and with compassion. A trustee's ethical responsibilities include administering trust assets and interacting with
beneficiaries with honesty, integrity, and transparency.