Question

6. Explain how assets are distributed after death in each of the following situations.

• Non-estate assets outside a will. Provide and describe at least 2 methods.

• Estate assets with a will. Describe this process in detail, including such things as types of wills, roles of executors, probation,

• Estate assets without a will. Describe in detail, including how the process takes place, and why the result might not be what a deceased person might have wanted.

Your answer should be between 1.5 and 2 pages in length.

Marking Grid:

• Non-estate assets outside a will. 2 pts for each method identified & 2 pts for each explanation. Max. 8 pts.

• Estate assets with a will. 2 pts defining a will, 4 pts for detailed explanation of the process.

• Estate assets without a will. 2pts defining intestacy, 4 pts for detailed explanation of the process.

Answer 1

Non-estate assets outside a will. Provide and describe at least 2 methods.

1. In a joint tenancy, when one of the joint tenants dies, that person’s interest in the property passes to the surviving joint tenant, who then becomes the sole owner.

2. A life insurance policy is independent of your Will even if you own the policy. The money from the life insurance policy will generally pass to the nominated beneficiary of the policy

Non-estate assets can be;

assets that you own jointly with someone; or

assets held in trusts and companies;

superannuation funds; and

life insurance funds

Estate assets with a will. Describe this process in detail, including such things as types of wills, roles of executors, probation,

A will is a legal document that sets forth your wishes regarding the distribution of your property and the care of any minor children. A will is important to have, as it allows you to communicate your wishes clearly and precisely.

If the decedent had a will, it will most likely name an executor—the person tasked with taking the will through the probate process. Even though the will specifies an executor, the appointment of the executor must be approved by the probate court. If the will does not name an executor, or if the named executor is deceased or otherwise unavailable, the court will appoint an executor.

Once the executor is appointed, the following steps occur:

The executor must complete and submit an accounting of the debts and assets of the estate

The executor must make arrangements to pay all final debts of the estate (deceased)

The executor must arrange for the filing and payment of all estate taxes

The executor must distribute any remaining assets in accordance with the provisions of the will

Estate assets without a will. Describe in detail, including how the process takes place, and why the result might not be what a deceased person might have wanted

Intestacy is the condition of the estate of a person who dies without having made a valid will or other binding declaration. Alternatively this may also apply where a will or declaration has been made, but only applies to part of the estate; the remaining estate forms the "intestate estate".

If the decedent died without a valid will they are said to have died intestate. When a person dies without a will, Iowof code provides a surviving spouse with an exclusive right for 20 days to file with the court a petition to initiate administration of the estate. Other heirs in succession, starting with surviving children, if any, have an additional 10 days to file such a petition. After those time periods have elapsed, creditors and others with an interest in the estate may file the petition. The court will designate an administrator to work with the estate attorney in the settlement proceedings. Generally the court would appoint a spouse or adult child if they are willing to serve. The law of Code then determines the distribution of assets.

If you don’t have a will when you die a surviving spouse may not receive all of your assets. This depends on (1) if you had children and (2) if all of your children were also your surviving spouse’s children. If you and your spouse had no children or all of the children are also children of the surviving spouse, then your spouse gets your entire estate.

Note-

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