Chapter 16, Problem 1PA

Summary Introduction

(a)

To determine:

An estate planning document for a recent college graduate, K.

Introduction:

Will is a legally enforceable certificate prepared by an individual that contains the wishes of an individual about the allotment of his assets and property upon his death.

Explanation of Solution

K is a recent college graduate, who owns few assets that too in joint ownership with her parents, so the estate planning document most feasible for her is a will because,

• It is very simple to create and can be drafted easily with no or minimal creation cost.
• It is an easy way of granting rights of assets and properties to anyone mentioned in the will.
• It allows to plan for personal matters like funeral arrangements, care and upbringing of living pets and any other matter the person wants to.

Conclusion

Since, K owns very less assets and that too are jointly owned, so the best estate planning document for her will be a will in which she can easily mention her wishes regarding distribution of her part in the jointly owned property and anything that she wants to be done after her death.

Summary Introduction

(b)

To determine:

An estate planning document for a couple, J and E.

Introduction:

Codicil is a supplementary document similar to a will that is prepared to amend, modify or to revoke a part of the will.

Explanation of Solution

J and E are having a will that was created 10 years ago before they had their second child, so a codicil would be the best choice among others because,

• Adding an individual who was previously not a part of the will can be easily done with a codicil.
• It is an economical way to amend, change or revoke any part of the will.

Conclusion

Thus, it is advisable to J and E to go for codicil as an estate planning document as her second child will also become a part of their will and that too at very less spending.

Summary Introduction

(c)

To determine:

An estate planning document for a widowed man, M.

Explanation of Solution

M is a widowed man living with his personal close friend is advised to create a will because,

• It is very simple to create and can be drafted easily with no or minimal creation cost.
• It is an easy way of granting rights of assets and properties to anyone mentioned in the will.
• It allows to plan for personal matters like funeral arrangements, care and upbringing of living pets and any other matter the person wants to.

Conclusion

Since, M wants to give all of his personal assets and properties to his personal close friend, he is advised to generate a will stating all the facts so that his wish is fulfilled.