Florida Wills, Trusts, And Estates


Florida Wills,Trusts, and EstatesCases and MaterialsSecond EditionElena Marty-NelsonEloisa C. Rodriguez-DodGail Levin RichmondDonna Carol LitmanJani MaurerCAROLINA ACADEMIC PRESSDurham, North Carolina

ContentsTable of CasesTable of AuthorsTable of Internet ResourcesPrefaceOverviewEditorial CommentsAcknowledgmentsChapter 1 Probate and Gross EstatesI. Statutory and Case ReferencesII. IntroductionIII. TerminologyA. Terminology Related to Wills and IntestacyB. Terminology Related to TrustsC. Other TerminologyIV. Wills and the Constitutional Right to DeviseA. The Right to DeviseShriners Hospitals v. ZrillicNotes and Discussion QuestionsB. Family Protection Limitations on the Right to Dispose of PropertyC. Problems Caused by Forgoing the Right to Devise1. Intestate Succession2. Other Functions of a WillV. Overview of Will-Related IssuesA. The Client's GoalsB. Other Factors an Attorney Should Consider Related to WillsC. Federal Involvement in the Administration of EstatesVI. Probate, Elective, and Gross EstatesA. Probate EstateB. Elective EstateC. Gross EstateD. Relationship of Probate and Gross EstatesE. Other Rights and InterestsVII. Property That Is Not Subject to ProbateA. Jointly Owned Property with Survivorship Rights1. Tenancy by the Entirety2. Joint Tenancy with Right of Survivorship3. Special Rules Governing Survivorship TenanciesB. Pay on Death and In Trust for AccountsC. Life Insurance 5555689910101111111212121313141414151515151616

CONTENTSD.E.F.G.H.I.J.K.Pensions and Other Retirement AssetsAnnuitiesTrustsProperty Subject to a Power of AppointmentHomesteadTransfers Before DeathOther Nonprobate PropertyFederal Estate Tax Gross Estate TableChapter 2 Intestate EstatesI. Statutory and Case ReferencesII. Intestate SuccessionA. Statutory Distribution Pattern1. Surviving SpouseHall v. MaalIn re Estate of Butler2. Descendants3. Parents4. Siblings and Their Descendants5. Paternal and Maternal KindredIn re Estate of TimState v. Rudawski (In re Estate of Tim)6. Kindred of Deceased Spouse7. EscheatB. Problems with Statutory SchemeC. ExceptionsIII. Intestate Distribution SystemsA. Florida's Distribution SchemeB. Other Distribution SchemesC. Comparative IllustrationsIn re Estate ofDavolNotes and Discussion QuestionsProblemsIV. Special Circumstances—Adoption, Out of Wedlock Births,Afterborn Children, and Half Blood RelationshipsA. Effect of Adoption on InheritanceKay v. Swartz (In re Estate ofKanevsky)Estate ofHuskea v. DoodyWilliams v. Estate of VenderNotes and Discussion QuestionsProblemsB. Children Born Out of WedlockBrown v. Johnson (In re Estate ofBroxton)C. Afterborn ChildrenProblemsD. Half Blood HeirsEstes v. NicholsonProblemsE. Children Born through Assisted Reproductive 3

CONTENTSviiChapter 3 Appointment of Personal Representative and Formalities of Execution 55I. Statutory and Case References55II. Appointment of Personal Representative55A. Qualifications of Personal Representative55B. Priority in Appointment as Personal Representative56C. Special Rules56Werner v. Estate ofMcCloskey57III. Execution of Wills58A. Statutory Requirements58B. Qualifying as a Witness59C. Signing at End59D. The Presence Requirement59IV. Testimonium and Attestation Clause60V. Self-Proof Affidavit and Admitting Will to Probate61VI. Integration61Baron v. Williams (In re Estate of Williams)62In re Schiele's Estate64Bradley v. Bradley66Dalk v. Allen68In re Esta te of Charry71Simpson v. Williamson72In re Estate of Watson74Price v. Abate75Notes and Discussion Questions77Problems78Chapter 4 Testamentary Capacity and Undue InfluenceI. Statutory and Case ReferencesII. OverviewIII. Requirements for Testamentary CapacityA. Age or EmancipationB. Sound MindElena Marty-Nelson, Angela Gilmore & Eloisa Rodriguez-Dod,Testamentary Capacity and Validity of WillsAmerican Red Cross v. Estate of HaynsworthEdwards v. Citizens National Bank ofLeesburg(In re Estate of Edwards)Pangborn v. Union Trust National Bank (In re Estate ofBurkhart)Notes and Discussion QuestionsIV. Undue InfluenceA. Substantial BeneficiaryB. Confidential RelationshipC. Actively Involved in Procuring the WillCarpenter v. Carpenter (In re Estate of Carpenter)In re Estate of Carpen terHack v.JanesRBC Ministries v. TompkinsCarter v. CarterTarsagian v. 0

viiiCONTENTSDiaz v. AshworthNotes and Discussion QuestionsProblemsV. Attorney-Client Relationship5 Fraud, Duress, Mistake, Spoliation, and Tortious InterferenceStatutory and Case ReferencesOverviewFraud, Duress, and MistakeA. FraudB. DuressC. MistakeD. Effect of Voiding Will ProvisionsIV. SpoliationLowy v. RobertsNotes and Discussion QuestionsV. Tortious InterferenceNeumann v. WordockSchilling v. HerreraClaveloux v. BacottiNotes and Discussion 19120120121121122124124125127131133Chapter 6 Amendment and Revocation; and Dispositions by Other MeansI. Statutory and Case ReferencesII. TerminologyIII. Revoking or Amending a Will or CodicilA. Express Revocation by Subsequent WritingB. Revocation by Inconsistent Subsequent WritingC. Revocation by ActIn re Estate ofBanckerMoneyham v. HamiltonIV. Revival or Republication of Revoked Will or CodicilIn re Estate ofTolinIn re Estate ofKuhnWider v. Wider (In re Wider's Estate)Jones v. Shifflet (In re Estate ofShifflet)Dahlyv.DahlyV. Testamentary Dispositions Involving Other DocumentsA. Incorporation by Reference and Acts of Independent SignificanceB. Devise to an Existing TrustC. Separate Written List of Tangible Personal PropertyIn re Estate of BaerNotes and Discussion 142144148150151152152152153155156Chapter 7 Dependent Relative Revocation; Lost or Destroyed Wills;and Later Discovery of a WillI. Statutory and Case ReferencesII. Overview159159159

CONTENTSIII. Dependent Relative RevocationStewart v. JohnsonWehrheim v. Golden Pond Assisted Living FacilityNotes and Discussion QuestionsProblemsIV. Lost or Destroyed WillsIn re Estate of Parkerix159161163168168169170Upson v. Estate ofCarville171Silvers v. Estate of Silvers172Walton v. Estate of WaltonBrennan v. Estate ofBrennanTartaglia v. Hatten (In re Estate ofHatten)Notes and Discussion QuestionsProblemsV. Later Discovery of a Will173175177180181181Chapter 8 Ambiguities and Rules of ConstructionI. Statutory and Case ReferencesII. OverviewIII. AmbiguitiesA. Latent AmbiguityB. Patent AmbiguityC. Treatment of AmbiguitiesHarbiev.FalkFine Arts Museums Foundation v. First National in Palm BeachDutcher v. Estate of ButcherNotes and Discussion QuestionsProblemsIV. Rules of ConstructionRomaniello v. RomanielloNotes and Discussion 2193Chapter 9 Types of Devises; Abatement; Ademption; Accessions;Exoneration; and Apportionment of TaxesI. Statutory and Case ReferencesII. OverviewIII. Types of DevisesBabcock v. Estate of BabcockNotes and Discussion QuestionsProblemsIV. AbatementA. Abatement of DevisesIn re Estate of PotterNotes and Discussion QuestionsB. Priority of ClaimsNotes and Discussion QuestionsProblemsV. Ademption by ExtinctionA. Significance of Type of 5205

xCONTENTSB. Effect of Testator's Intent When Property Is Not in EstateOtt v. OttHall v. Jones (In re Estate of Jones)Notes and Discussion QuestionsProblemsVI. Devises of Securities: Accessions and AdemptionA. Events Related to SecuritiesB. Default Rules for Devises of SecuritiesNotes and Discussion QuestionsProblemsVII. ExonerationWoodward v. Smith (In re Estate of Woodward)Notes and Discussion QuestionsProblemsVIII. Apportionment of TaxesA. Federal Estate Tax ComputationB. Apportioning the Estate TaxC. Importance of DraftingMcClaranv. SunTrust Bank, Southwest Florida(In re Estate 216217217217219219Chapter 10 Presumed Intent-—Pretermission and DivorceI. Statutory and Case ReferencesII. OverviewIII. Pretermitted SpousesA. Introduction1. Prenuptial or Postnuptial Agreements2. Providing for Spouse in WillNotes and Discussion QuestionsProblems3. Will Indicates Intent to Omit SpouseB. Rights of a Pretermitted SpouseProblemsC. Effect on Other DeviseesVia v. PutnamIV. Pretermitted ChildrenAzcunce v. Estate of AzcunceNotes and Discussion QuestionsProblemsV. Divorce and AnnulmentFredericks v. Shriners Hospitals for Crippled Children, Inc.(In re Estate of Fredericks)Bauer v. Reese (In re Estate of Bauer)Notes and Discussion QuestionsProblemsVI. Other Death Benefit 228231231232Chapter 11 Lapse and Antilapse and Class GiftsI. Statutory and Case ReferencesII. Overview241241241232234237238238

CONTENTSIII. Lapse and Antilapse ProvisionsA. Related DeviseesB. Unrelated DeviseesIV. Individual and Class DevisesA. Describing and Vesting Class DevisesB. Application of Antilapse Rules to Class GiftsV. Distribution of Failed DevisesA. Lapse of Devise to an IndividualB. Lapse of a Class GiftIn re Trust under Will ofHennesLorenzo v. MedinaDavis v. ArkenbergLyman v. Folan (In re Estate of Wagner)Notes and Discussion 46247247250250Chapter 12 Homestead; Personal Property Exemptions; and Family AllowanceI. Constitutional, Statutory, and Case ReferencesII. OverviewIII. Homestead ProtectionsDavis v. DavisBayview Loan Servicing, LLC v. GiblinNotes and Discussion QuestionsA. Claims of CreditorsChames v. DeMayoNotes and Discussion QuestionsB. Preserving the Creditor Protection for HeirsSnyder v. DavisPajares v. DonahueNotes and Discussion QuestionsC. Restrictions on Alienation and DeviseIn re Estate of FinchCity National Bank of Florida v. TescherNotes and Discussion QuestionsProblemsD. Personal Representative's Power over HomesteadIV. Exempt PropertyV. Family 262267269270270271273275277278278279Chapter 13 Elective ShareI. Statutory and Case ReferencesII. OverviewIII. Spousal Share: Relevant FactorsIV. Brief History of the Elective ShareA. Dower and CurtesyB. Elective Share in Florida before October 1,2001ProblemsC. Uniform Probate Code Elective ShareNotes and Discussion Questions281281281281282282282283283284

xiiCONTENTSD. Current Florida Elective Share RulesMagee v. Magee (In re Estate ofMagee)V. Computing the Elective ShareA. Assets Included in Elective EstateNotes and Discussion QuestionsProblemsB. Assets Excluded from Elective EstateNotes and Discussion QuestionsProblemsC. Overlap RulesProblemsD. Valuation of Elective EstateProblemsE. Property Interests Used to Satisfy the Elective ShareNotes and Discussion QuestionsProblemsF. Abatement of Assets to Satisfy the Elective ShareG. Valuation of Property Used to Satisfy Elective ShareH. Consequences of Taking Elective ShareProblemsI. Miscellaneous Elective Share IssuesFlorida Bar Ethics Opinion 65-50 (August 20, 1965)Notes and Discussion QuestionsProblemsChapterI.II.III.14 Miscellaneous Issues Affecting Testate and Intestate EstatesStatutory and Case ReferencesOverviewSimultaneous DeathA. Situations CoveredB. Establishing Order of DeathRimmerv. TeslaIn re Estate of ShineC. Establishing Contrary IntentionD. Length of SurvivorshipNotes and Discussion QuestionsProblemsIV. Killer StatuteA. Establishing Individual Is a KillerB. Who Takes the Property?Congleton v. SansomKendall v. Starnes (In re Estate of Benson)LoCascio v. SharpeNotes and Discussion QuestionsProblemsV. DisclaimersA. Tax Reasons for DisclaimingB. Who Takes the Disclaimed Property?C. Disclaimants in Financial 0320

CONTENTSDryev. United StatesNotes and Discussion QuestionsProblemsVI. Waivers and Succession AgreementsA. WaiversTaylor v. TaylorFoster v. Estate of GomesB. Succession AgreementsNotes and Discussion QuestionsProblemsVII. Post-Death Private AgreementsVIII.Effect of Inter Vivos Transfers on Recipient's Share of EstateA. Loans to BeneficiaryB. AdvancementsC. Ademption by SatisfactionLivingston v. CrickenbergerNotes and Discussion 7327328328328329329330331Chapter 15 Agreements Concerning SuccessionI. Statutory and Case ReferencesII. IntroductionIII. Florida Contract Law versus Florida Probate CodeIV. Required Formalities for Succession AgreementsV. Enforcing Succession AgreementsVI. Joint Estate PlansExchange National Bank v. BryanRenfro v. DodgeAlgar v. King (In re Estate of Algar)Spohr v. BerrymanDonner v. DonnerIn re Estate of WaksNotes and Discussion 2Chapter 16 Nonresidents and Ancillary AdministrationI. Statutory and Case ReferencesII. IntroductionIII. Nonresident DecedentsA. Ancillary AdministrationB. Determining DomicilePastor v. PastorCuevas v. KellyC. Governing Law for Testate and Intestate NonresidentsSounders v. SaundersFajardo v. Domingo (In re Estate ofFajardo)D. Validity of Wills of NonresidentsE. Community Property Owned by Florida ResidentsNotes and Discussion QuestionsIV. Nonresident 63364364

xivCONTENTSChapter 17 Introduction to TrustsI. Statutory ReferencesII. OverviewA. Increase in Use and Change in Role of TrustsB. Changes in Trust Laws — In GeneralC. Changes in Trust Laws — In FloridaIII. TerminologyA. Parties in Private Express TrustB. Methods for Creating Express TrustsC. Inter Vivos or Testamentary TrustsD. Revocable or Irrevocable TrustsRestatement (Third) of Trusts §63. Power of Settlor to Revokeor ModifyNotes and Discussion Questions367367367367369369371371371372372Chapter 18 Substantive Trust ElementsI. Statutory and Case ReferencesII. Trust Elements for Private Express TrustsA. ResBrainard v. CommissionerHerskowitz v. Smith (In re Estate of Herskowitz)Notes and Discussion QuestionsProblemsB. Settlor Intent and Capacity1. Express Intent to Create TrustRestatement (Third) of Trusts § 2. Definition of TrustRosen v. Rosen2. Precatory LanguageMagnant v. PeacockDeRoche v. Mitchell (In re Estate ofDeRoche)3. Capacity of SettlorRestatement (Third) of Trusts §11. Capacity of a Settlorto Create a TrustC. Trustee with DutiesAdams v. AdamsNotes and Discussion QuestionsD. Beneficiary1. Ascertainable BeneficiaryKunce v. RobinsonNotes and Discussion Questions2. Merger DoctrineGrant v. Wells (In re Wells)Contella v. ContellaNotes and Discussion QuestionsE. Valid Trust PurposeRestatement (Third) of Trusts §29.Purposes and Provisions That Are Unlawful or AgainstPublic PolicyNotes and Discussion 01401402

CONTENTSxvChapter 19 Trust Formalities and Funding TrustsI. Statutory and Case ReferencesII. Trust FormalitiesA. Testamentary Trust FormalitiesB. Inter Vivos Trust Formalities1. Statute of Frauds for Trusts of LandRestatement (Third) of Trusts §22. Writing Required byStatute of FraudsRestatement (Third) of Trusts §23. Signing Requirement:When and by Whom?2. Formalities for Testamentary Aspects of Revocable TrustsZuckerman v. AlterNotes and Discussion QuestionsIII. Funding TrustsA. Funding a Revocable TrustIn re AlexanderEngelke v. Estate ofEngelkeRaborn v. MenotteFlinn v. Van DevereB. Funding an Irrevocable Inter Vivos TrustC. Funding a Testamentary TrustNotes and Discussion 0423427427428428Chapter 20 Revocable TrustsI. Statutory and Case ReferencesII. Revocable TrustsA. Nontestamentary Character of Revocable TrustsB. Revocable Trusts and ProbateParker v. ShullmanNotes and Discussion QuestionsC. Designing a Revocable TrustD. Rules Governing Revocable TrustsNotes and Discussion QuestionsE. Amendment, Revocation, or Termination of Revocable TrustsRoberts v. SarrosProvost v. JustinNotes and Discussion 0Chapter 21 Wills-Trusts Crossover IssuesI. Statutory and Case ReferencesII. Crossover IssuesA. Mistake, Reformation, and ConstructionBarnett First National Bank of Jacksonville v. CobdenRobinson v. Robinson (In re Estate of Robinson)Davis v. RexNotes and Discussion QuestionsB. Undue InfluencePaananen v. KruseFlorida National Bank of Palm Beach County v. GenovaNotes and Discussion Questions441441441441442443446449450450452454407

xviCONTENTSC. Lapse and Antilapse1. No Property Interest Created When Devisee Failsto Survive Testator2. Property Interest Created When Inter Vivos Trust Is Created3. Florida Statutory Law for Future Interests in Trusts ReversesCommon LawSorrels v. McNallyJackson v. Exchange National Bank of TampaNotes and Discussion QuestionsD. DivorceHansen v. BotheNotes and Discussion QuestionsE. KillerF. Changes in SecuritiesBrundage v. Bank of AmericaG. Penalty apter 22 Trusts Providing Protection from CreditorsI. Statutory and Case ReferencesII. IntroductionIII. Creditor AccessA. Spendthrift ProvisionsWaterbury v. MunnNotes and Discussion QuestionsB. Exceptions That Give Creditors Access1. Type of CreditorBacardi v. WhiteRestatement (Second) of Trusts § 157. Particular Classes of ClaimantsRestatement (Third) of Trusts § 59. Spendthrift Trusts: Exceptionsfor Particular Types of Claims2. Different Distributive ProvisionsMiller v. KresserNotes and Discussion QuestionsProblems3. Self-Settled TrustsMenotte v. Brown (In re Brown)Notes and Discussion 5488489490490496Chapter 23 Additional Uses for Trusts—Elective Share Trusts; MaritalDeduction Planning; Life Insurance Trusts; Trusts for Animals;and Twenty-One Year Trusts for Noncharitable PurposesI. Statutory and Case ReferencesII. OverviewIII. Elective Share TrustsA. Using Life Insurance to Fund the Elective ShareB. Establishing an Elective Share TrustJanien v. JanienC. Valuing an Elective Share TrustD. Using Life Insurance for Elective Share Trusts499499499499500501501504505

CONTENTSNotes and Discussion QuestionsProblemsIV. Marital Deduction PlanningA. IntroductionB. Computing the Estate TaxC. Using the Marital Deduction, Unified Credit, and Truststo Save Estate TaxNotes and Discussion QuestionsV. Life Insurance TrustsSanders v. Citizens National Bank of LeesburgNotes and Discussion QuestionsVI. Trusts for AnimalsA. OverviewPhillips v. Estate ofHolzmannNotes and Discussion QuestionsB. Drafting OptionsVII. Twenty-One Year Trusts for Noncharitable PurposesChapterI.II.III.24 Termination and Modification of Irrevocable TrustsStatutory and Case ReferencesIntroductionCommon Law of Termination and ModificationA. Nonjudicial Termination and Modification—Common LawRestatement (Third) of Trusts §65. Termination or Modificationby Consent of Beneficiaries1. Material PurposeClaflin v. ClaflinNotes and Discussion Questions2. Unanimous Consent of BeneficiariesWhite v. BourneGoldentrester v. Richard (In re Estate ofGoldin)Bieley v. BieleyNotes and Discussion QuestionsB. Judicial Termination and Modification—Common LawRestatement (Third) of Trusts § 66. Power of Court to Modify:Unanticipated CircumstancesNotes and Discussion QuestionsMills v. BallIV. Florida Statutory Law on Termination and ModificationA. Nonjudicial Termination and ModificationB. Judicial Termination and Modification1. Termination and Modification Consistent with Settlor's Intent2. Termination and Modification for Best Interests of BeneficiariesC. Other Termination, Modification, and Reformation StatutesClement v. Charlotte Hospital Ass'n, Inc.Notes and Discussion 2152352652952952953053053954054054!541542542545546

xviiiCONTENTSChapterI.II.III.25 Charitable TrustsStatutory and Case ReferencesIntroductionCharitable Trust or Charitable GiftPersan v. Life Concepts, Inc.Schwarzkopf v. American Heart Ass'n of Greater Miami, Inc.Notes and Discussion QuestionsIV. Standing and EnforcementDelaware v. Florida First National Bank of JacksonvilleV. Rule Against Perpetuities and Charity to Charity ExceptionNotes and Discussion QuestionsProblemsVI. Cy Pres DoctrineJewish Guild for the Blind v. First National Bank in St. PetersburgNotes and Discussion QuestionsChapterI.II.III.26 Powers of AppointmentStatutory and Case ReferencesIntroductionPowers of AppointmentA. TerminologyFerrell-French v. FerrellB. Proper Exercise of PowerTalcottv. TalcottVetrick v. KeatingTimmons v. IngrahmNotes and Discussion QuestionsChapter 27 Classifying Future Interests and the Rule Against PerpetuitiesI. Statutory and Case ReferencesII. IntroductionIII. Review of Future InterestsA. Classifying Interests1. Future Interests Retained by Grantor2. Future Interests Received by GranteesB. Classifying EstatesSpeck v. Bussey (In re Estate ofColding)Brown v. HarrisIV. Common Law Rules Other Than Rule Against PerpetuitiesA. Doctrine of Worthier TitleB. Rule in Shelley's CaseC. Rule of Destructibility of Contingent RemaindersRentz v. Unborn Grandchildren ofRentz (In re Estate ofRentz)Blocker v. BlockerV. The Rule Against PerpetuitiesA. Classic FormulationB. Purposes Served by the Rule Against PerpetuitiesC. Future Interests That Are VulnerableD. Method for 580582584585586586587588588589594597598599599600

ChapterI.II.III.CONTENTSxix1. Time for Testing2. Testing Vulnerable InterestsLudwig v. AmSouth Bank of FloridaNotes and Discussion QuestionsE. Charity to Charity ExceptionNotes and Discussion QuestionsF. Florida's Uniform Statutory Rule Against PerpetuitiesOld Port Cove Holdings, Inc. v. Old Port Condominium AssociationOne, Inc.Notes and Discussion QuestionsG. Perpetuities Savings Clauses60060160460660760760828 Fiduciary Powers, Duties, and LiabilitiesStatutory and Case ReferencesOverviewPowersMcMullin v. BeaverNotes and Discussion QuestionsIV. DutiesA. Duty to Administer Trust in Good FaithAnton v. AntonB. Duty of LoyaltyKaren E. Boxx, Of Punctilios and Paybacks: The Duty of LoyaltyUnder the Uniform Trust CodeWickman v. McGraw (In re Trust under Will of Wickman)Keyev. GautierNotes and Discussion QuestionsC. Duty of ImpartialityRestatement (Third) of Trusts §79. Duty of Impartiality;Income ProductivityD. Duty to Administer Trust PrudentlyIn re Estate ofFeldsteinRestatement (Third) of Trusts §90. General Standardof Prudent InvestmentNotes and Discussion QuestionsE. Duty to Incur Only Reasonable ExpensesF. Duty to Use Special SkillsG. Duty to Prudently Exercise Power to DelegateLittle River Bank & Trust Co. v. Peskin (In re Estate ofRosenthal)Notes and Discussion QuestionsH. Duty to Control and Protect Trust PropertyFlagship Bank of Orlando v. Reinman, Harrell, Silberhorn,Moule & Graham, P.A.Notes and Discussion QuestionsI. Duty to Inform and AccountMesler v. HollyHarris Trust Co. of Florida v. DavisNotes and Discussion QuestionsProblemsJ. Duty to Not 37637637639640641641

xxCONTENTSV. LiabilitiesA. Liability to BeneficiariesAnton v. AntonAiello v. HylandNotes and Discussion QuestionsProblemsB. Liability to Third PartiesHastings Potato Growers Ass'n v. PomarNotes and Discussion QuestionsChapterI.II.III.IV.29 Constructive Trusts and Resulting TrustsStatutory and Case ReferencesIntroductionDistinguishing Constructive and Resulting Trusts from Express TrustsConstructive TrustsRestatement (Third) of Trusts § 24. Result of Noncompliancewith Statute of FraudsWodonos v. WodonosWilliams v. GroganMayer v. dancioloAllen v. DalkHolmes v. HolmesCity National Bank of Miami v. General Coffee Corp. (In reGeneral Coffee Corp.)Notes and Discussion QuestionsProblemsV. Resulting TrustsKey v. TrattmannNotes and Discussion QuestionsProblemsChapter 30 Principal and IncomeI. Statutory and Case ReferencesII. IntroductionIII. Applicable RulesA. Use of Statutory RulesJenkins v. DonahooB. Discretion of FiduciaryFlorida Coast Bank ofPompano Beach v. MayesIV. Overview of Principal and IncomeA. Terminology1. Receipts and Disbursements2. Principal and IncomeB. Significance of ClassificationV. Trusts and EstatesA. TrustsB. Estates1. Income Due or Accrued before Death2. Income and Expenses after 8678680680681681681682682682683684684684

CONTENTS3. Interrelationship between Estates and TrustsVI. Allocating Receipts and DisbursementsA. OverviewB. Specific Types of Property1. Receipts and Disbursements from Rental Property2. Corporations and Other Business Entities3. Unincorporated Businesses Operated by Fiduciary4. Bonds5. Unproductive or Underproductive Property6. Special Types of Income and DisbursementsC. Adjustments between Income and PrincipalVII. Drafting IssuesNotes and Discussion 688688689690Chapter 31 Documents Related to Wills and TrustsI. Statutory and Case ReferencesII. In GeneralIII. Durable Power of AttorneyA. Durability and FormalitiesB. When Power CommencesC. Powers, Duties, and Liabilities of Agent1. Powers and Property Subject to PowersGurfinkel v. Josi2. Duties and LiabilitiesKrevatas v. WrightD. Termination of PowerNotes and Discussion QuestionsProblemsIV. Designation of Health Care SurrogateA. Purpose of DesignationB. Creation of Designation of Health Care SurrogateC. When Power CommencesD. Rights and Responsibilities of SurrogateE. Termination of AuthorityV. Living WillA. Purpose and Creation of Living WillSatz v. PerlmutterSatz v. PerlmutterB. Effect of Living WillJohn F. Kennedy Memorial Hospital, Inc. v. BludworthVI. Absence of Advance DirectivesSchindler v. Schiavo (In re Guardianship ofSchiavo)Notes and Discussion QuestionsVII. Burial and CremationNotes and Discussion 17Chapter 32 Introduction to Estate and Tax PlanningI. Constitutional and Statutory References719719

xxiiCONTENTSII. IntroductionIII. Relevant TaxesA. Income TaxB. Transfer TaxesIV. Federal Gift TaxA. Taxable Gifts1. Gift Tax Exclusions2. Gift Tax Deductions3. Applicable Exclusion AmountB. Gift Tax RatesC. Value of GiftD. Adjusted Taxable Gifts and Effect on Estate TaxE. Lifetime Gifts and Effects on Non-Tax PlanningV. Federal Estate TaxA. Gross Estate1. Probate Assets2. Revocable Trusts3. Life Insurance4. Tenancy by the Entirety Property and Property Held by Spousesas Joint Tenants with Right of Survivorship5. Joint Tenancy with Right of Survivorship—Unmarried Co-Tenants6. Other Property Included in the Gross EstateB. Deductions and Taxable Estate1. In General2. Marital Trusts and Florida Elective Share TrustsDonna Litman, The Interrelationship Between the Elective Shareand the Marital Deduction3. Credit Shelter TrustsC. Estate TaxVI. Impact of Income, Gift, and Estate Tax on Estate PlanningChapter 33 Probate AdministrationI. Statutory and Case ReferencesII. IntroductionIII. Overview of Purpose and ProcedurerV. Probate versus Nonprobate PropertyA. Probate PropertyB. Nonprobate Property1. Uniform Transfers to Minors Act Accounts2. Community PropertyV. Gathering Probate PropertyNotes and Discussion QuestionsVI. Creditors'ClaimsGrainger v. WaldA. Notifying Creditors1. Reasonably Ascertainable CreditorJones v. Sun Bank/Miami2. Additional RulesB. Creditors' ObligationsNotes and Discussion 37737739739739739740740741742742744745745748749750

CONTENTSC. Dispute or Resolution of ClaimsD. Payment of Claims and TaxesProblemsVII. Distribution of Probate Estatexxiii750751752752AppendicesPreface to AppendicesAppendix A Will with Testamentary Trust (Northern Trust Form 101)Appendix B Will with Trust for Minors (Northern Trust Form 106)Appendix C Will with Pour Over Devise (Northern Trust Form 110)Appendix D Codicil to Will (Northern Trust Form 113)Appendix E Revocable Trust Agreement (Married Settlor)(Northern Trust Form 201)Appendix F Revocable Trust Agreement (Unmarried Settlor)(Northern Trust Form 208)755755757797805819869Index877827

B. Other Factors an Attorney Should Consider Related to Wills 11 C. Federal Involvement in the Administration of Estates 12 VI. Probate, Elective, and Gross Estates 12 A. Probate Estate 12 B. Elective Estate 13 C. Gross Estate 13 D. Relationship of Probate and Gross Estates 14 E. Other Rights and Interests 14 VII. Property That Is Not Subject .