1. Essentials Of Business Law Chapter 24 Wills, Intestacy, And Trusts McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Essentials of Business LawChapter 24-2 Wills Will  A person’s declaration of how to distribute his or her property upon death Decedent  Deceased person Testator  Person who makes the will Probate court  Court responsible for accepting and for supervising the operation of the will

3. Essentials of Business LawChapter 24-3 Wills Personal representative  The person responsible for settling the affairs of the decedent  Executor Personal representative named in the will  Administrator Court appointed a personal representative Intestate  A person dies without a will

4. Essentials of Business LawChapter 24-4 Types Of Gifts Under Wills Beneficiary  Individual who receives gifts of personal or real property pursuant to a will Legacy  A gift of money Bequest  A gift of personal property Devise  A gift of real property Residuary  A legacy or bequest that provides for the disposition of the balance of the estate

5. Essentials of Business LawChapter 24-5 Requirements Of A Will Requirement of writing  A will must be in writing, dated, and signed Requirement of witnesses  Witnesses must be legally competent  Expected to be satisfied that the testator is of sound mind at the time of signing

6. Essentials of Business LawChapter 24-6 Requirements Of A Will Testamentary capacity  Testator must be of sound mind and legal age Undue influence  Pressure applied to a testator to change his or her true wishes for the disposition of property Living will  A document that directs a physician to forgo certain medical procedures

7. Essentials of Business LawChapter 24-7 Revoking And Revising Wills Revisions  Codicil A separate document prepared to revoke, alter, or revise a will Must be witnessed and dated Revocations  A new will automatically revokes all prior wills made by the testator

8. Essentials of Business LawChapter 24-8 Trusts Trust  A device that permits personal or real property to be held by one party for the benefit of another Allows the legal title of property to be separated from the benefits of ownership Testamentary trust  Created by a will  Becomes effective upon the death of the testator  Beneficiaries and trustee are specified in the will Living trust  Established while the person who wishes to set up the trust is still alive

9. Essentials of Business LawChapter 24-9 Role Of Trustee Trustee’s powers  Authority and responsibility to invest trust property  Sell, exchange, or rent property  Contract with others in matters relating to the trust  Borrow funds using trust property as security  To distribute income to beneficiaries

10. Essentials of Business LawChapter 24-10 Role Of Trustee Trustee’s duties  Maintain appropriate records  Pay taxes  Use good judgment in managing the property Trustee’s accountability  A trustee can be held liable for unsound judgment in managing the trust