ACCT 5315 Estate and Gift Taxation - Texas Tech ….pptVIP

ACCT 5315Estate and Gift Taxation Introduction to wills, trusts, and other probate procedures Organization of Class Hand out resume’ files Hand out glossary of terms related to estates and trusts. Hand out homework assignment for week 2 Go over glossary of terms. Begin Lecture on Wills, Trusts and Probate Procedures. Wills Generally, the most important instrument in estate plan Will: written statement disposing of property at death executed by a person during life A will is not operative until death, but is changeable during a testators life. Who can make a will anyone over 18 years old Must be mentally competent @ time the will is executed Cannot be under any duress or undue influence at the time the will is executed Valid Wills To be valid a will: Must be signed. States vary in level of witnesses needed Many states require Signature by the maker and, 2 witnesses neither of which may have a financial interest in the estate. If any of the witnesses are not valid the will technically does not exist. Properly executed wills under one state are valid in all U.S. states and Possessions Wills (continued) Testator/testatrix: Persons who makes a will Will provides how the testator’s property will be distributed The will also names the person or institution who will carry out the will’s instructions (i.e. the executor/executrix) If no executor/trix named, probate court will appoint an administrator/trix Executor=testators personal representative Wills - continued Beneficiary - people named in the will to receive property. If beneficiaries are not of legal age or incompetent Probate court appoints a guardian ad litem (for the purpose of the probate proceedings) Probate court can also appoint a guardian of the property (cares for the assets of the minor) Probate court can also appoint a guardian of the person who cares for the personal attributes of the minor. Generally these two guardians are the same person. Parent - legal guardian of the person not necessarily th