2.  A document that is signed during your lifetime that provides for the distribution of your property upon death  Each state has it’s own requirements  Those who receive property by will are referred to as beneficiaries  Heir refers to one who inherits property under a will or from someone dying without a will

3.  Any person of sound mind who has reached the age of adulthood (18 yrs)  To be found of ‘sound mind’ you must have sufficient mental capacity to do the following: › Understand the nature and extent of your property › Know who would be the natural persons to inherit › Know that you are making a will › Be free from delusions that might influence your decision

4.  To be valid, a will must conform to the law of the state that it is written  A will that is legally made in one state will be valid in every state  Must be in writing  Must be signed  Witnessed by at least 2 people  In many states, a holographic will, that is, a will written entirely by hand of the testator is valid without witnesses

5.  My be revoked by › Burning › Tearing › Canceling › Obliterating › Executing a new one › Marrying after the will was created › Divorce  Codicil – a formal document used to supplement or change a will

6.  State laws contain provisions designed to protect surviving family a family member dies  Protection of Spouses – surviving spouses can choose to take a different portion of the estate instead of what was appointed  Protection of children – sometimes children may be left out of a will › Forgotten children have rights › Those left out on purpose, do not

7.  Called intestate  Deceased’s personal property is disbursed according to the laws of the state  In general, surviving spouse is entitled to 1/3 or ½ of the estate  The balance is divided equally among children – if no children, then grandchildren  If there are no children or grandchildren, goes to deceased parents  If none of the above apply, it goes to siblings  If no siblings are alive, it goes to their children

8.  When people die owning assets their estate must be probated – settled under the supervision of the probate court  Validity of the will must be established first  If no one opposes the will – done deal  Those who oppose are able to contest it  A will usually names a personal representative › Executor (male) or Executrix (female)

9.  Sue Smith died without a will. Her husband Stan had preceded her in death, and they had no children. Sue had a sister Daisy and a brother Duke. Daisy was still living but Duke was dead. Duke had 3 children, all of whom were still living. Both of Sue’s parents were dead, but she had one living uncle, Trey. Trey had two sons, both living. After Sue’s debts and taxes are paid there is $1,000,000.

10.  Who inherits from Sue if you follow the general guidelines from the notes?  ANSWER  Dukes 3 children  How much does the heir or heirs inherit?  ANSWER  Daisy inherits $500,000 and Duke’s 3 children divide the other $500,000 equally