Wills and Inheritance Unit 24

Preview Definitions: inheritance, will Conditions for a valid will: form, substance Testamentary capacity 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may be challenged on the grounds that: it was not properly executed the testator lacked testamentary capacity it has been revoked it was fraudulent undue influence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 Definition of will Conditions for a valid will Testamentary capacity

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 last will and ___is a legal document that declares how an ___or property will be managed after the writer’s death. Although it is not the most pleasant subject to approach, it is essential for people to ___a will to ensure that their ___are handled in a satisfying way.

Key A last will and testament is a legal document that declares how an estate or property will be managed after the writer’s death. Although it is not the most pleasant subject to approach, it is essential for people to draft a will to ensure that their assets are handled in a satisfying way.

Investments, minor, party, property For those with __children, it is crucial to declare how ___or money will be used to provide for these children. For those with ___or accumulated savings, it is important to state the name a responsible ___ who will manage these funds.

Key For those with minor children, it is crucial to declare how property or money will be used to provide for these children. For those with investments or accumulated savings, it is important to state the name a responsible party who will manage these funds.

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 to the ___ 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 was not created under ___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.