Robert J. Lynn - Introduction to Estate Planning in a Nutshell

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Joshua Dressler

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Jonathan R. Macey

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Arthur R. Miller

University Professor, New York University
Formerly Bruce Bromley Professor of Law, Harvard University

Grant S. Nelson

Professor of Law Emeritus, Pepperdine University
Professor of Law Emeritus, University of California, Los Angeles

A. Benjamin Spencer

Justice Thurgood Marshall Distinguished Professor of Law
University of Virginia School of Law

James J. White

Robert A. Sullivan Professor of Law Emeritus
University of Michigan

Introduction to Estate Planning

In a nutshell

Seventh Edition

Robert J. Lynn

Late Professor of Law
Ohio State University, Moritz College of Law

Grayson M.P. M c Couch

Gerald Sohn Professor of Law
University of Florida

The publisher is not engaged in rendering legal or other professional advice, and this publication is not a substitute for the advice of an attorney. If you require legal or other expert advice, you should seek the services of a competent attorney or other professional.

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Preface

This book is a revised edition of a work which first appeared in 1975. It is intended for law students, lawyers, and non-lawyers who are interested in the areas of wills, trusts, future interests, fiduciary administration, insurance, pensions, and federal estate and gift taxation.

Because each chapter stands as much as possible as a separate unit, we have included no internal cross-references, and occasionally a particular topic is discussed more than once. Successive chapters do, however, tend to build on preceding chapters. Therefore, before reading (say) Chapter 8 on trusts, it is helpful to have a working knowledge of the material presented in Chapters 1 through 5.

Citations are few. In a short volume of this sort, it is not feasible to give sufficient citations to satisfy a specialist without distracting and discouraging the non-specialist. Fortunately, there are several excellent treatises directed to the former, and we have therefore chosen to try to assist the latter.

A special word of acknowledgment is due to Professor Robert Lynn, the original author of this book, who passed away in 2008. During a long and distinguished career, he was universally admired and respected for his scholarly erudition and practical wisdom. In addition, he was a beloved teacher renowned for his gentle wit and patient, courteous nature. He is remembered with affection and gratitude by colleagues, friends, and former students.

Grayson M.P. McCouch

January 2019

Outline

The Transfer of Property at
Death by Will or Intestacy 25

2.3 Those Who Take the Net Probate
Estate 26

2.5 Intestacy: Estate Planning By
Operation of Law 28

2.15 The Surviving Spouses Right of
Election 43

4.3 Community Property Distinguished
from Separate Property 73

4.6 Community Property and Federal
Estate Taxation 79

4.8 Community Property, Conflict of Laws, and Protection of the Surviving
Spouse 82

5.17 A Simple Will in Its Entirety, with
Self-Proving Affidavit 115

6.3 Life Insurance Proceeds Under State
Law and Under the Federal Estate
Tax 126

6.4 Why Property and Liability
Insurance? 128

7.1 Providing for Dependents Through
Status 151

7.3 Becoming Insured Under Social
Security 156

7.5 Other Governmental and Private
Pension Plans 161

8.2 The Statute of Frauds and the Wills
Act 183

8.5 Facts of Independent Significance and
the Pour-Over Will 196

8.7 Protecting Beneficiaries from
Themselves 203

Future InterestsAn
Introduction 221

9.1 Reversions, Remainders, and
Executory Interests 221

9.10 What Motivates the Creation of
Powers? 253

The Rule Against Perpetuities
and Related Doctrines 271

11.7 Destructibility and Duration of
Trusts 295

Federal Estate and Gift
Taxation 325

13.2 Correlative Income Tax
Consequences 329

13.3 Estate and Gift TaxesComputation
and Payment 332

13.8 Joint Tenancy with Right of
Survivorship 351

13.11 Lifetime Transfers with Retained
Powers or Interests 359

13.12 Transfers Within Three Years of
Death 367

13.17 The Generation-Skipping Transfer
Tax 382

13.18 Planning Considerations and the GST
Tax 385

13.19 Income Taxation of Trusts and
Estates 388

Table of Cases

References are to Pages

Bendall v. Home Indemnity Co., 238 So.2d 177 (Ala. 1970), 148

Boggs v. Boggs, 520 U.S. 833 (1997), 170

Cattlin v. Brown, 68 Eng.Rep. 1319 (Ch. 1853), 281

Claflin v. Claflin, 20 N.E. 454 (Mass. 1889), 211

Clobberies Case, 86 Eng. Rep. 476 (Ch. 1677), 234

Connecticut General Life Ins. Co. v. Gulley, 668 F.2d 325 (7th Cir. 1982), 141

Crummey v. Commissioner, 397 F.2d 82 (9th Cir. 1968), 348

Francis v. Francis, 573 P.2d 369 (Wash. 1978), 78

Hall v. Schoenwetter, 686 A.2d 980 (Conn. 1996), 309

Harris v. Commissioner, 340 U.S. 106 (1950), 344

Harvard College v. Amory, 26 Mass. 446 (1830), 312

Home for Incurables v. University of Maryland, 797 A.2d 746 (Md. 2002), 41

Jackson v. United States, 376 U.S. 503 (1964), 374

Lalli v. Lalli, 439 U.S. 259 (1978), 39

Leake v. Robinson, 35 Eng.Rep. 979 (Ch. 1817), 230

Lippincott Estate, 17 Pa.D. & C.2d 80 (Orphans Ct. 1959), 269

Old Colony Trust Co. v. United States, 423 F.2d. 601 (1st Cir. 1970), 361

Pearce v. National Life & Accident Ins. Co., 125 So. 776 (La.App. 1930), 78

Phipps v. Ackers, 8 Eng.Rep. 539 (H.L. 1842), 226

Schmanski v. Schmanski, 984 P.2d 752 (Nev. 1999), 75

Shapira v. Union National Bank, 315 N.E.2d 825 (Ohio Com.Pl. 1974), 41

Stone v. Stephens, 99 N.E.2d 766 (Ohio 1951), 142

Storrs v. Benbow, 43 Eng.Rep. 153 (Ch. 1853), 281, 282

Totten, In re, 71 N.E. 748 (N.Y. 1904), 61

Trimble v. Gordon, 430 U.S. 762 (1977), 39

Weld v. Bradbury, 23 Eng.Rep. 1058 (Ch. 1715), 241

Table of Statutes

References are to Pages

I.R.C. 170(f)(3)(B)382

I.R.C. 401(a)(9)168

I.R.C. 401(a)(13)168

I.R.C. 408171

I.R.C. 408A171

I.R.C. 417169

I.R.C. 641663389

I.R.C. 642(c)(5)382

I.R.C. 643(f)391

I.R.C. 651389

I.R.C. 652389