Chapter 1.

LAWYERS, ESTATES, AND TRUSTS

§ 1 Opportunities
§ 2 An Overview of Inter-Generational Wealth Transfer
A.Probate
1. The Process
2. Is Probate Necessary>
B.Lifetime Transfers
1. Trusts
2. Other Lifetime Transfers
C.Guardianships
D.The Uniform Codes and the Restatements
§ 3 Federal Wealth Transfer Taxes
A.A (Somewhat) Unified System
B.The Gift Tax
C.The Estate Tax
1. The Gross Estate
2. The Marital Deduction
3. Using the Unified Credit
D.The Generation-Skipping Transfer Tax
§ 4 Duties Lawyers Owe Clients (and Others)

Chapter 2.INTESTACY
§ 1 Overview
A.Terminology
B.Survivorship
C.Choice of Law
D.Protective Provisions
E.The UPC Intestate Scheme
§ 2 Qualifying to Take
A.Spouses
B.Children of Unmarried Persons
C.Adopted Persons
D.Half Bloods
E.Stepchildren
F.Posthumous Children
G.Identifying Next of Kin
§ 3 Allocating Shares
A.Spouses
B.Descendants and Collaterals
1. Per Capita
2. Representation
a. Strict Per Sterpes
b. Per Sterpes: Per Capita with Representation
c. Representation: Per Capita at Each Generation
3. Drafting Lessons

Chapter 3.WILLS
§ 1 The Planning Process
§ 2 Creation of Wills
A.What’s a Will?
 B.The Mental Element
1. Intention
2. Testamentary Capacity
a. Mental Deficiency
b. Insane Delusion
3. Undue Influence
4. Fraud
C.Will Execution
1. The Policies
2. A Typical “Statute of Wills”
a. In Writing
b. Signed
c. Attested in the Testator’s Presence
d. By Competent Witnesses
e. Some Other Rules
f. Attestation Clauses and Self-Proving Affadavits
3. Holographic Wills
4. Mistake in Execution
D.Protective Planning
1. Who Might Challenge
2. Structural Elements
3. Conduct
§ 3 Components of the Will
A.Integration
B.Incorporation by Reference
§ 4 Interpreting Wills: Extrinsic Evidence
A.Patent and Latent Ambiguities
B.Interpretation or Reformation
§ 5 Revocation
A.By a Writing
B.By Physical Act
C.By Operation of Law
§ 6 Revival
§ 7 Dependent Relative Revocation
§ 8 The Ethics of Safeguarding Wills
§ 9 Contracts Regarding Wills

Chapter 4.WILL SUBSTITUTES

§ 1 Lifetime Gifts
§ 2 Joint Interests
A.Joint Tenancy
B.Multiple Party Accounts
§ 3 Property in Marriage
§ 4 Lifetime Trusts
A.Validity
B.Ignoring Trust Form
§ 5 Life Insurance and Other Contracts
§ 6 Retirement Funds
A.Annuities
B.Pensions
 1. Private Sector Benefit Plans
2. Public Retirement Plans

Chapter 5.CHANGED CIRCUMSTANCES

§ 1 Acts of the Property Holder
A.Advancements
B.Satisfaction
C.Divorce
§ 2 Acts of Beneficiaries
A.Disclaimers
B.Assignments of Expectancies
C.Misconduct
§ 3 Changes in Property
A.Classification of Gifts
B.Dividends and Stock Splits
C.Ademption
D.Abatement and Exoneration
§ 4 Lapse
A.Traditional Antilapse Statutes
B.The Uniform Probate Code

Chapter 6.PROTECTING THE FAMILY

§ 1 Disinherited Spouses
A.Community Property
B.Dower
C.The Right to Elect
1. The Basics
2. Exceptions
3. The Uniform Probate Code
a. The Original Augmented Estate
b. A Partnership Approach
D.Changes in Domicile
E.Agreements Waiving Marital Rights
§ 2 Forgotten Spouses and Children
§ 3 Charitable Gifts
§ 4 Public Policy Limits

Chapter 7.PLANNING FOR INCAPACITY

§ 1 Property Management and Preservation
A.Durable Powers of Attorney
B.Long-Term Care Insurance
§ 2 Health Care Decisionmaking

Chapter 8.TRUSTS
§ 1 An Overview
A.History
B.Modern Trust Law
C.Express, Resulting, and Constructive Trusts
D.Terminology
E.Contemporary Reasons for Trusts
 F.Choice of Law
§ 2 Creation
A.Intent
B.Trust Property
C.Beneficiaries
D.Trustee
E.Trust Purposes
F.Formalities for Trust Creation
§ 3 The Nature of the Beneficiary’s Interest
A.Mandatory Trusts
1. Right to Income Trusts
2. Annuity Trusts
3. Unitrusts
B.Discretionary and Support Trusts
C.Transfers of Beneficial Interests in Trust
1. General Principles
2. Spendthrift Provisions and Other Restraints on Alienation
a. Restraints on Voluntary Transfers
b. Restraints on Involuntary Transfers
3. Asset Protection Trusts
4. Medicaid Eligibility
§ 4 Reformation, Modification, and Termination
A.Reformation and Modification Based on Ambiguity and Mistake
B.Termination and Modification Prescribed by Settlor
C.Termination and Modification by the Trust Beneficiaries
1. The Claftin Doctrine
2. Indestructible Trusts
D.Judicial Modification or Termination
§ 5 Charitable Trusts
A.Creation and Enforcement of Charitable Trusts
B.Charitable Purposes
C.Modification
1. Cy Pres
2. Equitable Deviation

Chapter 9.PLANNING FOR THE FUTURE: SUCCESSIVE TRUST INTERESTS

§ 1 Fundamentals
A.Dividing by Time
B.Defeasibility
C.Life Estates and Reversions
D.Remainders and Executory Interests
1. Vested Remainders
2. Contingent Remainders
E.Trusts and Future Interests
F.Problems in Classification
§ 2 Interpretation Questions
A.Survival
1. Traditional Approaches
2. The UPC
B.Class Gifts
 1. Status Questions
2. Class Closing
3. Class Gifts Involving Multiple Generations
a. Gifts to Descendants
b. Gifts to Heirs
i. Identifying Heirs
ii.Shelly’s Case
iii.Worthier Title
iv.Drafting Gifts to Heirs
c. Wild’s Case
C.Death Without (or With) Issue
§ 3 Powers of Appointment
A.The Basics
1. The Players
2. Classification of Players
a. Permissible Appointees
b. Method of Exercise
3. Estate Tax Treatment
4. Who Owns the Property
B.Creation and Exercise
§ 4 The Rule Against Perpetuities
A.Framework for Analysis
B.A Possibilities Test
C.Class Gifts
D.Powers of Appointment
1. Validity of the Power
2. Validity of the Appointed Interests
3. Takers in Default
E.Saving Clauses
F.Reform
1. Wait and See
2. Reformation
G.Perpetuities Repeal Movement
§ 5 Other Rules on Dead Hand Control over Trusts
A.The Rule Against the Undue Suspension of the Power of
Alienation
B.The Rule Against the Unreasonable Accumulation of Trust
Income

Chapter 10.PROBLEMS IN ADMINISTRATION

§ 1 An Overview
§ 2 Duty of Loyalty
§ 3 Managerial Issues
A.Duties and Powers
B.Investments
1. The Traditional “Prudent Man”
2. The Prudent Portfolio Investor
3. Delegation and Direction
4. Donor’s Direction
C.Principal and Income Issues
 1. Principal and Income Allocation Issues
2. Trustee’s Adjustment Power
3. The Noncharitable Unitrust Alternative
D.Other Duties
E.Liability to Third Parties
§ 4 Remedies for Breach of Fiduciary Duties
A.Remedies in General
B.Bars to Relief
 PA PEF CODE

Definitions
§ 102Definitions
• Trust means trust, whether testamentary or inter vivos.
• Will means a will, codicil or any other testamentary writing.

Intestate Succession
§ 2101Intestate Estate
• Any part of an estate not disposed of by will passes to the intestate
estate.
• Negative provisions of wills can exclude or limit property passing by
intestate succession.
§ 2101Share of Surviving Spouse
• See statute for specifics.
• Favors issue and parents to share with surviving spouse.
§ 2101Shares of Other Than Surviving Spouse
1) Issue
2) Parents
3) Siblings
4) Nieces/Nephews
5) Grandparents
6) Aunts/Uncles
7) Cousins
8) Cousin’s Children
9) Commonwealth of Pennsylvania
§ 2101Rules of Succession
• PA follows per sterpes by representation.
• There is no distinction between whole- and half-blood consanguinity.
• Takers conceived before the decedent’s death but born afterwards
shall take as if they were born in the decedent’s lifetime.
• Default taking of property by multiple people is tenancy in common.
• A person related to the decent through two lines of relationship shall
only take the larger of the two shares.
• A taker must survive the decent for 5 days, or else they are treated as
pre-deceasing the decedent. (With the exception of the anti-lapse
statute).
§ 2107Persons Born Out of Wedlock
• A person born out of wedlock shall be considered a child of their
mother.
• A person born out of wedlock shall be considered a child of their father
if:
○ The parents subsequently marry.
○ During the lifetime of the child, the father holds the child to be
his and receives the child into his home, and provides support
that shall be proven by clear and convincing evidence.
○ There is clear and convincing evidence of paternity, such as a
prior court determination of such.
§ 2107Adopted Person
• An adopted person shall be considered to be a child of their adoptive
parents.
• An adopted person shall not be considered to be a child of their
biological parents, except for any biological non-parent that maintains
a familial relationship.
§ 2107(.1) Advancements
• Inter vivos gifts are considered advancements only if declared in a
writing.

Elective Share of Surviving Spouse

§ 2201Definition of Conveyance
• Conveyance is an act that intends to create an interest in real or
personal property.
§ 2201Right of Election; Nonresident Decedent
• Rights of a surviving spouse of a decent not domiciled in PA are
governed by the state of the decedent’s domicile at death.
§ 2201Right of Election; Resident Decedent
• Surviving spouse has a right to an elective share of one-third of:
○ Property passing by will or intestacy
○ Income or use for the remaining life of the spouse of property
conveyed by the decedent of which, at the time of death, the
decent had the power to withdraw, use, revoke, or convey
○ Survivorship rights of an annuity contract purchased during
marriage
○ Property conveyed by the decedent during the marriage and in
the last year of their life to the extent that the amount each
done receives exceeds $3,000.
• Surviving spouse has *NO RIGHTS* to an elective share in:
○ Conveyances with the consent of the surviving spouse
○ Proceeds from life insurance
○ Random employer/employee benefits
○ Property passing from a power of appointment given by another
party
§ 2201Disclaimers, Releases, and Charges Against Elective Share
• An election by a spouse to take their elective share will be deemed as
a disclaimer of any beneficial interest in most, if not all, property
passing from the decedent.
§ 2201Transfers for Value Excluded
• Conveyances resulting from contracts in which the decedent receives
adequate consideration are exempt from a surviving spouse’s elective
share.
§ 2201Right of Election Personal to Surviving Spouse
• The right of election may be exercised by surviving spouse or agent of
surviving spouse.
§ 2201Waiver of Right to Elect
• Waiver may occur before or after marriage or death.
§ 2201Forfeiture of Right of Election
• If a spouse would not take anything via intestacy, they do not have the
right of elective share.
 Wills
§ 2501Who May Make a Will
§ 2502Form and Execution of a Will
§ 2504(.1) Validity of Execution
§ 2505Revocation of a Will
§ 2506Revival of Revoked or Invalid Will
§ 2507Modification by Circumstances
§ 2514Rules of Interpretation
§ 2515Devise of Bequest to Trust
§ 2516Penalty Clause for Contest

Contracts Regarding Succession

§ 2701Contracts Concerning Succession

Abatement
§ 3541Order of Abatement

Disclaimers
§ 6201Right to Disclaim
§ 6203Interests Subject to Disclaimer
§ 6205Effect of Disclaimer

Multiple-Party Accounts
§ 6301Definitions
§ 6303Ownership During Lifetime
§ 6304Right of Survivorship
§ 6305Form of Account
§ 6306Accounts and Transfers Nontestamentary

Trusts; Uniform Trust Act