Week 9

Lois Griffin, using a preprinted will form, forgot to include a residuary clause to pass the residue of her estate to a named person.  Lois had made a number of specific gifts to relatives and friends, but the bulk of her estate was in the residue.

How does the remainder of her estate pass?

• The residue of her estate passes according to intestacy laws.
• The residue of her estate is donated to charity.
• The residue of her estate is divided equally among her friends.
• The residue of her estate passes to her closest living relative.

Cari’s will provides: (1) I give my diamond ring to my best friend, Florance. (2) I give $5,000 to my faithful employee, Steve. (3) I leave all my personal property to my only heir, Jeremy.

Who gets the ring and cash?

• Jeremy gets the ring; Florance gets the cash.
• Florance gets the cash; Steve gets the ring.
• Steve gets both the ring and the cash.
• The language makes it ambiguous.

A condition precedent is...

• A requirement that must be fulfilled after a will is signed.

• An optional clause that enhances a will's terms.

• An event that must occur before a distribution becomes effective.

• A condition that can be ignored if both parties agree.

Greg gives Blueacre to Saul “when he receives his college degree.” Saul attended college and in his final semester his little sister fell ill and needed full time care.  Saul drops out of school 2 months before graduation.

Who owns Blueacre?

• Blueacre is owned by their parents.
• Saul owns Blueacre.
• The college owns Blueacre.
• Greg owns Blueacre.

A condition subsequent is...

• A provision that allows termination upon a specified event.

• A provision that allows for automatic renewal of contracts.
• A clause that guarantees performance of obligations.
• A legal requirement for will enforcement.

John gifts the family farm to his oldest daughter, Jane, “as long as the property is used to farm. If she no longer uses the property to farm, then to Joel.”

After 20 years of farming, Jane can no longer keep the farm running because of costs.  If Jane were to attempt one more season she would go bankrupt.  Jane makes the difficult decision to close down the farm and brings in a profitable motorcross business that rents the land.  In her first year renting the land to the motorcross business, she makes 10x what she ever did in the prior 20 years farming.

Who owns the property?

• Joel owns the property.
• Jane still owns the property.
• The property is owned by a third party.
• The property is abandoned and has no owner.

John gifts the family farm to his oldest daughter, Jane, “as long as the property is used to farm. If she no longer uses the property to farm, then to Joel.”

After 20 years of farming, Jane can no longer keep the farm running because of costs.  If Jane were to attempt one more season she would go bankrupt.  Jane makes the difficult decision to close down the farm and brings in a profitable motorcross business that rents the land.  In her first year renting the land to the motorcross business, she makes 10x what she ever did in the prior 20 years farming. 

Joel, recognizing that the farm was not profitable decides to keep the motorcross business on the property.

Who owns the property?

• Jane owns the property.
• The property is owned by a third party.
• The property is owned by the state.
• Joel owns the property.

Diana Smith drafted a will and made several gifts, including, my gold watch to “James Smith.”  However, in this case, James Smith Jr. was her husband, James Smith Sr. was her father-in-law, and James Smith III was her son.

Who owns the gold watch?

• Diana Smith
• James Smith III
• James Smith Sr.
• It is unclear given the language.

Real property is defined as...

• Real property refers to personal belongings and movable assets.
• Real property is defined as any type of financial investment.
• Real property is defined as property that is immovable, fixed, or permanent.

• Real property is defined as only the buildings on a plot of land.

A fixture is...

• Personal property that remains personal property, even after it is permanently attached to land or buildings.

• Real property.

• Personal Property

• Real property that may once have been personal property, but is now permanently attached to land or buildings.