Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
Solution and Answer Guide
WALTER, WILLS, TRUSTS AND ESTATE ADMINISTRATION, 2028, 9780357452196,
CHAPTER 1: THE ESTATE PLAN AND THE PURPOSE AND NEED FOR A WILL
TABLE OF CONTENTS
Assignments ...........................................................................................................................1
Review Questions ................................................................................................................. 2
Case Problems ...................................................................................................................... 5
Problem 1 ...................................................................................................................................... 5
Problem 2...................................................................................................................................... 6
Practical Assignments .......................................................................................................... 6
ASSIGNMENTS
1.1.
Solution:
Answer will vary depending on jurisdiction.
1.2.
Solution:
This assignment has several possible responses. Much will depend on the individual
student and the scenarios chosen. Some possible plans for Jacob Weizman’s will in
transferring the three farms and the $100,000 to his five daughters in equal shares are
the following:
• He can establish a trust to hold and manage the three farms, with the $100,000
being used as startup or operating capital. The five daughters can be named as
equal beneficiaries.
• He can transfer each of the farms to the five daughters equally as joint tenants
with rights of survivorship. The $100,000 can be split equally among the five
daughters.
• He can transfer the title to the farms to the executor of his estate with the
direction that the properties are to be sold and the proceeds, along with the
$100,000, divided equally among the five daughters.
• He can discuss the situation with his daughters to determine if any of them want
the farms and, if so, devise each farm in equal shares to two daughters
(approximate value $100,000 each) as appropriate, sell the farms that the
daughters do not want and distribute the proceeds, approximating the $100,000
value of the real estate, among the remaining daughters, with any overage, shared
by all five.
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
REVIEW QUESTIONS
1. Explain the reasons why many Americans die without wills.
Solution:
• Some do not want to discuss or face their mortality.
• Some are reluctant to discuss their property and finances with strangers.
• Some procrastinate.
• Some cite cost as a reason to avoid writing a will.
• Some people are prohibited by statute from writing wills (e.g., minors and
incompetent persons).
• Some people do not need a will because they have limited or no property.
• Some have no heirs and feel they have no need for a will.
• Some are satisfied with the distribution provided by the intestate succession
statutes of their state.
• Some attempt to create a will, but it is declared invalid by the probate court due
to improper execution.
• Some use “will substitutes” such as joint tenancy, trusts, inter vivos gifts, transfer-on-
death deeds, and life insurance.
2. What does it mean to say the maker of a will has testamentary capacity? How does it
differ from legal capacity?
Solution:
Testamentary capacity means that the maker or testator must be old enough to write
a will and be of “sound mind” at the time the will is made. It refers to the
requirements of state statutes for a person to make a will. Legal capacity does not
necessarily hinge upon age.
3. List your state’s statutory requirements for the execution of a will. How do your state’s
requirements for a valid will differ from those of other states?
Solution:
Most states require the following:
• Legal capacity (generally aged 18 or older).
• Testamentary capacity (sound mind).
• Will must be written/printed (some states allow handwritten or oral).
• Signed by testator in presence of competent witnesses (some states allow “X” or
proxy signature) (definition of “presence” varies with states and is evolving with
electronic wills) (many states require signature at end of will).
• Dated.
• Be attested and signed by competent witnesses (unless holographic or
nuncupative) (most states require two witnesses).
4. Since the terminology included in this chapter is essential to your understanding of
legal concepts and procedures presented in future chapters and your practice in the
fields of wills, trusts, and estates, write out your own definition of each key term in this
chapter. Are your definitions essentially the same as those in the text?
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
Solution:
Here are the key terms to be defined:
testament
estate plan
disposition
will
statutes
legal capacity
testamentary capacity
testator (male)/testatrix (female)
sound mind
execution of a valid will
holographic will
beneficiary [of a will]
formal probate
informal probate
Uniform Probate Code (UPC)
probate court
domicile
real property
ambulatory
codicil
letter of instructions
surviving spouse
apportionment clause
residuary estate
legatee
pro rata
tenancy in common
tenant in common
intestate succession statutes
guardian
spouse’s statutory, forced, or elective share
ward
incompetent person
personal guardian
property guardian
fiduciary
heir
fiduciary duty
adoptive parent
conservator
testamentary trust
inter vivos or living trust
trust
settlor
legal title [of a trust]
trustee
beneficiary [of a trust]
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
equitable title [of a trust]
bypass trust
principal
federal estate tax
income
public (charitable) trust
personal representative
executor or executrix
administrator or administratrix
transfer-on-death deed or beneficiary deed
joint tenancy
domiciliary administration
5. Can a will be changed or revoked? Explain.
Solution:
Wills take effect only when the testator dies. Until then, wills are considered
ambulatory, revocable, and subject to change at any time before death. The testator
can review and modify the will as often as they wish and at any time by adding,
deleting, or changing gifts, beneficiaries, clauses of the will, or fiduciaries. Also, the
testator can sell or dispose of any property listed in the will before death. If the
modification is a simple one, a codicil or amendment to the will is sufficient; however,
if the changes are numerous or major, a new will should be executed.
6. List and explain the various reasons or purposes for making a will.
Solution:
• The primary function of a will is to allow the testator the opportunity to accurately
describe the property owned at death and to designate to whom that property is to
be distributed. Another reason is that it allows a testator to preplan their funeral
and burial, which takes a burden off the grieving family. Although a will allows a
testator to express their personal wishes in this area, the reality is that such
preplanning may be futile either because the will is not found in time or because
the family simply disobeys or ignores the instructions.
• Wills allow a testator to provide for organ donations. It is also advisable that the
testator execute an organ donor identification card.
• Wills allow a testator to donate their body for medical research.
• Wills allow a testator to consider appropriate apportionment clauses in the will to
determine the source from which death or estate taxes will be paid. This allows
the testator to take advantage of any tax benefits and to ensure that the estate
goes to those persons that they intended. It may prevent the unintentional result
of placing family members in a hardship situation.
• The testator can plan for and avoid ill-advised and awkward property distributions,
such as serious personality conflicts that might occur between/among the
resulting co-owners of the testator’s property.
• Wills allow the testator to appropriately provide for a surviving spouse and the
individual needs of children.
• Wills allow the testator to appoint property and personal guardians for any minor
children according to the law and for any incompetent persons.
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
Chapter 1: The Estate Plan and the Purpose and Need for a Will
Solution and Answer Guide
WALTER, WILLS, TRUSTS AND ESTATE ADMINISTRATION, 2028, 9780357452196,
CHAPTER 1: THE ESTATE PLAN AND THE PURPOSE AND NEED FOR A WILL
TABLE OF CONTENTS
Assignments ...........................................................................................................................1
Review Questions ................................................................................................................. 2
Case Problems ...................................................................................................................... 5
Problem 1 ...................................................................................................................................... 5
Problem 2...................................................................................................................................... 6
Practical Assignments .......................................................................................................... 6
ASSIGNMENTS
1.1.
Solution:
Answer will vary depending on jurisdiction.
1.2.
Solution:
This assignment has several possible responses. Much will depend on the individual
student and the scenarios chosen. Some possible plans for Jacob Weizman’s will in
transferring the three farms and the $100,000 to his five daughters in equal shares are
the following:
• He can establish a trust to hold and manage the three farms, with the $100,000
being used as startup or operating capital. The five daughters can be named as
equal beneficiaries.
• He can transfer each of the farms to the five daughters equally as joint tenants
with rights of survivorship. The $100,000 can be split equally among the five
daughters.
• He can transfer the title to the farms to the executor of his estate with the
direction that the properties are to be sold and the proceeds, along with the
$100,000, divided equally among the five daughters.
• He can discuss the situation with his daughters to determine if any of them want
the farms and, if so, devise each farm in equal shares to two daughters
(approximate value $100,000 each) as appropriate, sell the farms that the
daughters do not want and distribute the proceeds, approximating the $100,000
value of the real estate, among the remaining daughters, with any overage, shared
by all five.
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
REVIEW QUESTIONS
1. Explain the reasons why many Americans die without wills.
Solution:
• Some do not want to discuss or face their mortality.
• Some are reluctant to discuss their property and finances with strangers.
• Some procrastinate.
• Some cite cost as a reason to avoid writing a will.
• Some people are prohibited by statute from writing wills (e.g., minors and
incompetent persons).
• Some people do not need a will because they have limited or no property.
• Some have no heirs and feel they have no need for a will.
• Some are satisfied with the distribution provided by the intestate succession
statutes of their state.
• Some attempt to create a will, but it is declared invalid by the probate court due
to improper execution.
• Some use “will substitutes” such as joint tenancy, trusts, inter vivos gifts, transfer-on-
death deeds, and life insurance.
2. What does it mean to say the maker of a will has testamentary capacity? How does it
differ from legal capacity?
Solution:
Testamentary capacity means that the maker or testator must be old enough to write
a will and be of “sound mind” at the time the will is made. It refers to the
requirements of state statutes for a person to make a will. Legal capacity does not
necessarily hinge upon age.
3. List your state’s statutory requirements for the execution of a will. How do your state’s
requirements for a valid will differ from those of other states?
Solution:
Most states require the following:
• Legal capacity (generally aged 18 or older).
• Testamentary capacity (sound mind).
• Will must be written/printed (some states allow handwritten or oral).
• Signed by testator in presence of competent witnesses (some states allow “X” or
proxy signature) (definition of “presence” varies with states and is evolving with
electronic wills) (many states require signature at end of will).
• Dated.
• Be attested and signed by competent witnesses (unless holographic or
nuncupative) (most states require two witnesses).
4. Since the terminology included in this chapter is essential to your understanding of
legal concepts and procedures presented in future chapters and your practice in the
fields of wills, trusts, and estates, write out your own definition of each key term in this
chapter. Are your definitions essentially the same as those in the text?
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
Solution:
Here are the key terms to be defined:
testament
estate plan
disposition
will
statutes
legal capacity
testamentary capacity
testator (male)/testatrix (female)
sound mind
execution of a valid will
holographic will
beneficiary [of a will]
formal probate
informal probate
Uniform Probate Code (UPC)
probate court
domicile
real property
ambulatory
codicil
letter of instructions
surviving spouse
apportionment clause
residuary estate
legatee
pro rata
tenancy in common
tenant in common
intestate succession statutes
guardian
spouse’s statutory, forced, or elective share
ward
incompetent person
personal guardian
property guardian
fiduciary
heir
fiduciary duty
adoptive parent
conservator
testamentary trust
inter vivos or living trust
trust
settlor
legal title [of a trust]
trustee
beneficiary [of a trust]
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Walter, Wills, Trusts and Estate Administration, 2028, 9780357452196,
Chapter 1: The Estate Plan and the Purpose and Need for a Will
equitable title [of a trust]
bypass trust
principal
federal estate tax
income
public (charitable) trust
personal representative
executor or executrix
administrator or administratrix
transfer-on-death deed or beneficiary deed
joint tenancy
domiciliary administration
5. Can a will be changed or revoked? Explain.
Solution:
Wills take effect only when the testator dies. Until then, wills are considered
ambulatory, revocable, and subject to change at any time before death. The testator
can review and modify the will as often as they wish and at any time by adding,
deleting, or changing gifts, beneficiaries, clauses of the will, or fiduciaries. Also, the
testator can sell or dispose of any property listed in the will before death. If the
modification is a simple one, a codicil or amendment to the will is sufficient; however,
if the changes are numerous or major, a new will should be executed.
6. List and explain the various reasons or purposes for making a will.
Solution:
• The primary function of a will is to allow the testator the opportunity to accurately
describe the property owned at death and to designate to whom that property is to
be distributed. Another reason is that it allows a testator to preplan their funeral
and burial, which takes a burden off the grieving family. Although a will allows a
testator to express their personal wishes in this area, the reality is that such
preplanning may be futile either because the will is not found in time or because
the family simply disobeys or ignores the instructions.
• Wills allow a testator to provide for organ donations. It is also advisable that the
testator execute an organ donor identification card.
• Wills allow a testator to donate their body for medical research.
• Wills allow a testator to consider appropriate apportionment clauses in the will to
determine the source from which death or estate taxes will be paid. This allows
the testator to take advantage of any tax benefits and to ensure that the estate
goes to those persons that they intended. It may prevent the unintentional result
of placing family members in a hardship situation.
• The testator can plan for and avoid ill-advised and awkward property distributions,
such as serious personality conflicts that might occur between/among the
resulting co-owners of the testator’s property.
• Wills allow the testator to appropriately provide for a surviving spouse and the
individual needs of children.
• Wills allow the testator to appoint property and personal guardians for any minor
children according to the law and for any incompetent persons.
© 2028 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
