Premium Essay

Heir to an Estate

In: Business and Management

Submitted By Sabina1
Words 371
Pages 2
HEIRS TO AN ESTATE

Recently you and you brother and sister inherited the estate of an aunt who lived in Chicago. All three of you loved your aunt, but even though you all lived in the same city, you had not kept in contact with her in recent years due to career and family obligations. Your aunt’s Last Will & Testament requires that the three of you divide the assets among you any way that you can agree upon within 30 days of her death. However, if you fail to provide her attorney with a written agreement within the 30 days, all of her assets will be given to a charity. The estate consists of the following: (1) about $320,000 in cash and CDs; (2) a 2004 Lincoln Town Car; (3) two houses valued at $360,000 and $ 525,000; (4) all of the furnishings of both houses; (5) an art collection valued at $250,000; (6) season tickets to the Chicago Cubs (behind the home dugout); (7) a large box containing many family photos and slides. The three of you are meeting in six days to try and negotiate a settlement of the estate. In preparation answer the following skills questions:

Skill 2-1: Recognize that before next week’s meeting, preparation is critical to success, and usually includes identifying all tangible and intangible issues that will be of interest to all parties, and then prioritizing those issues, making sure to include some throwaway issues. What preparations do you need to make before the meeting?

Skill 2-2: Should you propose the three of you begin negotiation by adopting ground rules that address the “5 Ws”? Also consider the setting –where should you meet?

Skill 2-3: The initial offer in negotiation could affect the tone and outcome, what will be your initial offer?

Skill 2-4: Anticipate some posturing by your brother and sister. While the three of you get along fairly well, this

Similar Documents

Premium Essay

Heirs to an Estate

...HEIRS TO AN ESTATE Recently you and you brother and sister inherited the estate of an aunt who lived in Chicago. All three of you loved your aunt, but even though you all lived in the same city, you had not kept in contact with her in recent years due to career and family obligations. Your aunt’s Last Will & Testament requires that the three of you divide the assets among you any way that you can agree upon within 30 days of her death. However, if you fail to provide her attorney with a written agreement within the 30 days, all of her assets will be given to a charity. The estate consists of the following: (1) about $320,000 in cash and CDs; (2) a 2004 Lincoln Town Car; (3) two houses valued at $360,000 and $ 525,000; (4) all of the furnishings of both houses; (5) an art collection valued at $250,000; (6) season tickets to the Chicago Cubs (behind the home dugout); (7) a large box containing many family photos and slides. The three of you are meeting in six days to try and negotiate a settlement of the estate. In preparation answer the following skills questions: Skill 2-1: Recognize that before next week’s meeting, preparation is critical to success, and usually includes identifying all tangible and intangible issues that will be of interest to all parties, and then prioritizing those issues, making sure to include some throwaway issues. What preparations do you need to make before the meeting? Skill 2-2: Should you propose the three...

Words: 369 - Pages: 2

Premium Essay

Exercise 1: Heirs to an Estate

...Exercise 1: HEIRS TO AN ESTATE Skill 2-1: Recognize that before next week’s meeting, preparation is critical to success, and usually includes identifying all tangible and intangible issues that will be of interest to all parties, and then prioritizing those issues, making sure to include some throwaway issues. What preparations do you need to make before the meeting? Preparation is first stage of negotiation process which starts with defining the key goals which means -what are the person’s expectations from the negotiation process? Also person involved in Negotiation process during preparation he should decide his or her BATNA- Best Alternative To a Negotiated Agreement. Identifying key issues in negotiation, setting priorities and developing support agreement for adopted position is also important parts of preparation before start negotiation with other party (Carrell, Heavrin, 2007). In order to perform an activity in a proper way we need to have some sort of preparation for it. Preparation is a key for a successful negotiation activity. For negotiation very first thing we need to understand is if there is anything to negotiate or not (If we were to sit down… (n.d.). For the preparation point of view before negotiations starts with my brother and sister I must have to look at the following things. BATNA Before the start of negotiation defining BATNA is important to make oneself in a strong position (Carrell, Heavrin, 2007). My BATNA would be to divide all the...

Words: 1898 - Pages: 8

Free Essay

Present Estates

...A. THE PRESENT ESTATES (1) Fee Simple Absolute • Future Estate: None • Language Creating FSA: (a) to “A and his heirs (b) to “A, his heirs and assigns” (c) to “A” • Duration: Unlimited • Transferability: By deed, will or intestacy • FSA is form of undivided ownership • It is unlimited in duration • Words of purchase: words of conveyance “A” • Words of limitations: words that describe or limit the estate which is transferred “to his hears”; also designate something less than FSA “to A for life” • The owner A can transfer himself does not need his hears to join him to convey • The statute usually provides that any conveyance will be presumed to pass entire estate (FSA) to the grantor unless the contrary intent is expressed in document Meaning of “words of purchase” • Does not necessary mean A bought the land it could be gift, inheritance etc Meaning of “heirs” • Has a technical meaning, descendents of a person who died intestate • Living person does not have heirs, can have presumptive heirs Meaning of “words of inheritance” • “and his heirs” are not only words of limitation but also words of inheritance • They describe inheritable estate which does not end with the holder’s death like in life estate • FSA holder has the largest estate know to law • The grantees enjoyment of the estate may be encumbered by interests in land by mortgage, private nuisance etc, government may restrict use of land in manner that would jeopardize health, safety...

Words: 495 - Pages: 2

Free Essay

Business

...interests, called estates, in real property. The type of estate is generally determined by the language of the 5 deed, lease, bill of sale, will, land and grant through which the estate was acquired. Estates are distinguished by the varying property rights that vest in each, and that determine the duration and transferability of the various estates. A party enjoying an estate is called a "tenant." There are several different ways a party can own an interest in real property. There are possessory types of interests and non-possessory types of interests. This lesson explains the main types of real property ownership. Possessory Interests When we talk about ownership interests in real property, we're actually talking about many different types of ownership. Ownership interests come in various forms and, depending on the type of interest, a landowner's rights may be limited. Let's start by exploring some of the possessory interests possible when owning land. A possessory interest is the intent and right of a party to occupy or exercise control over a particular plot of land. This is the type of ownership most of us think about when we think about land ownership. There are three main types of possessory interests: fee simple absolute, life estate, and leasehold. Let's start with the greatest possible interest in land. Fee Simple Absolute A fee simple absolute is an ownership interest that includes all rights in the land. Just as the name suggests, this type of estate...

Words: 1513 - Pages: 7

Premium Essay

Estate Planning for Same Sex Couples

...Estate Planning for Same Sex Couples I. Introduction The benefits of marriage are unavailable to same-sex couples. Moreover, outdated intestacy statutes fail to recognize the close family bond between same-sex partners. Moreover, most intestacy laws discriminate against same-sex couples in that gay or lesbian relationships are generally considered invalid for the purposes of distributing the estate of a deceased partner who dies without a will. Accordingly, in order to reap inheritance and tax benefits that are automatically afforded to traditional married couples, these same-sex couples must rely on extensive and creative legal planning. There are several tools that provide solutions to this issue. Contract based estate planning techniques are the most commonly used tools for distributing a decedent’s property at death. Though the following planning mechanisms provide certain advantages, they are also accompanied by various disadvantages. II. Wills A will is an instrument by which a person directs dispositions of property to take effect upon death. It is the only document that allows a decedent’s probate assets to pass testate to persons of his or her choosing as opposed to passing via the strict laws of intestacy, under which the surviving partner would receive nothing. Even in the presence of strategies used to avoid probate such as intervivos trusts, wills are an essential precautionary measure to demonstrate the intent to pass property outside of probate, to...

Words: 2337 - Pages: 10

Free Essay

Aaaaaa

...Personal property, also referred to as movable property, is anything other than land that can be the subject of ownership, including stocks, money, notes, Patents, and copyrights, as well as intangible property. Real property is land and ordinarily anything erected on, growing on, or affixed to it, including buildings and crops. The term is also used to declare any rights that issue from the ownership of land. The terms real estate and real property generally refer to land. The term land, in its general usage, includes not only the face of the earth but everything of a permanent nature over or under it, including minerals, oil, and gases. In modern usage, the word premises has come to mean the land itself or the land with all structures attached. Residential buildings and yards are commonly referred to as premises. Personal property is property owned by an individual or business which is movable and is not affixed to or associated with the land. Basically, personal property is everything except real property. Personal property for a business would include equipment, office furniture and equipment, cars/trucks purchased and used by the business, and, basically, everything that isn't "nailed down." In other words, personal property is movable, while real property is not. Because of the mobile nature of personal property, it is more difficult for a credit to use personal property to secure a loan. For example, if a bank loans money on a building, it can be sure that the building...

Words: 2116 - Pages: 9

Free Essay

Legal Status of Women in Africa

...prohibition of discrimination Customary law — succession — heir at customary law — whether female able to inherit late father’s estate Human rights — women’s rights — discrimination on the grounds of sex — whether Legal Age of Majority Act had created positive rights or had only removed legal disabilities The deceased died intestate. His estate consisted of a house and some cattle. He had entered into marriages with two wives, both marriages being according to African law and custom. The appellant, a female, had been born 1941 and was the child of the deceased’s first wife. The respondent, a male, had been born in 1946 and was the child of the deceased’s second wife. The appellant was thus the eldest child of the deceased. The respondent was not the eldest male child of the deceased, but the eldest male child had declined the heirship. A community court had originally appointed the appellant as heir to the estate, but on application from the respondent to the community court, the appointment of the appellant had been set aside and, after a hearing at which all the interested parties were present, the court ruled in favour of the respondent. The grounds for this ruling were that a woman cannot be appointed as heir to her father’s estate when there was a male heir. The respondent thus had to be appointed as heir in place of the appellant. In coming to this conclusion, the court relied on s 68(1) of the Administration of Estates Act [Chapter 6:01]...

Words: 8530 - Pages: 35

Free Essay

News

...This is a 2-hour exam; one essay and 20/25 questions CHECKLIST Do the questions first; then spend the rest of the time on the essay. Things grader looks for: Need a nice IRAC; issue spotting; I. Land Acquisition – TWO or more people fighting over property A. Adverse possession: To constitute adverse possession, there must be actual possession which is uninterrupted, open and notorious, hostile and exclusive, and under a claim of right made in good faith for the statutory period. Possession for a statutory period of time can ripen into title. 1. Elements: COAH a. Actual Possession: Actual means that the possession must be such that the community would reasonably regard the adverse possessor as the owner; the possessor must show an actual entry that gives exclusive possession of the land and does not have the owner’s permission to be there. The possessor’s subjective state of mind is irrelevant. b. Uninterrupted: Continuity of possession may be established although the land is used regularly for only a certain period each year. It is not necessary that the occupant should be actually upon the premises continually. If the land is occupied during the period of time during the year it is capable of use, there is sufficient continuity. Thus, summer occupancy only of a summer beach home does not destroy the continuity of possession required. c. Open and Notorious: The acts of the adverse possessor are...

Words: 13742 - Pages: 55

Free Essay

Death Tax

...The inheritance tax, or estate tax, is a tax which the United States levies on the total taxable value of the estate of a deceased person. The amount of tax is calculated regardless of the method in which the assets of the estate are transferred to the person's heirs: assets included in a will, transferred automatically because the person died intestate or as an insurance benefit or account payoff. Inheritance tax is paid by the executor of the estate or by the person in charge of its assets. The United States has a consolidated policy on inheritance and gift tax so that a person cannot give away his or her estate to potential beneficiaries shortly before death in order to avoid taxation; beneficiaries would simply pay gift tax rather than inheritance tax in this case. The federal government makes a distinction between the "gross estate" (all assets) and the "taxable estate" (assets less a certain number of allowable deductions such as funeral expenses, some charitable contributions and various other deductions). In most cases, if the estate is left to a charitable organization or a surviving spouse, no inheritance tax is due. There are also exclusions for a certain portion of the estate; however, these have been frequently changed by recent tax legislation, and usually, it is worth consulting a professional to determine what amount of the estate is not taxable under current federal law. In part because these complexities make it possible for some wealthy people to establish...

Words: 1866 - Pages: 8

Premium Essay

Huguette Clark Estate Case Study

...regarding this inheritance case. To ensure a complete understanding between us, I am stating the pertinent information about the advice that I will be rendering and the facts I have gathered. The law imposes various outcomes that shows how you are the rightful heirs to the late Huguette Clark estate. Querela This is the process that I would recommend that we use Since you would naturally succeeded Ms. Clark under the ius civile as sui herdes if she would have died intestate. Then under testamentary you should have succeeded Ms. Clark also. Exherdatio Since under law the person making the will have to list all disinherited male and female suis by name. Skipping any names of potential heirs could lead...

Words: 844 - Pages: 4

Premium Essay

Orphaned Grandchild

...Section 4 of the Muslim Family Laws Ordinance, 1961: A Critic Professor Dr. A.W.M Abdul Huq Introduction Law, whether divine or manmade, is always for the well-being of the human beings. In other words, laws are ultimately related to life experiences which are not a monopoly of the theologians only.1 As the society is not any constant phenomenon, it inevitably changes every moment. As a result laws are needed to be changed in compliance with the changing demands of the society. In Islamic Legal System as well the iron fist of taqlid (the doctrine of imitation) had to give way to ijtihad (meaning independent and free exercise of intellect to interpret interpretation of Islamic laws). It is always open for and permitted to, the thinkers, lawmakers and the rulers who are entrusted to apply shariah in society. In this short commentary I intend to address a particular issue relating to the orphaned children’s inheritance right. This is an extremely practical anomaly of the Doctrine of Representation usually escaping our notice. Grandchild’s inheritance right: the Islamic Law The Islamic law of inheritance does not all together deny the grandchild of the propositus their right to inheritance. Sunni Law places them in the list of quranic sharers. Unless excluded otherwise, they inherit from their grandparent. The doctrine of representation comes into question in case of allotment of their shares. The doctrine is accepted at least for two purposes:2 A) For the purpose...

Words: 2538 - Pages: 11

Premium Essay

Reviewer Tax

...gratuitous disposition of private property. ESTATE TAX FORMULA: KINDS OF TRANSFER TAXES: ESTATE TAX NIRC Donation mortis causa Tax levied on the transmission of properties from decedent to his heirs Tax on the privilege to transmit property at death Excise tax or privilege tax Effective upon death Tax base is the net estate Net estate amounting to P200,000 is exempted 20% highest rate DONOR’S TAX NIRC Donation inter vivos Tax levied on the transmission of properties from a living person to another living person. Gross Estate (Sec. 85) TAX ON THE TRANSFER OF REAL PROPERTY LGC Less: Ordinary Deductions (Sec. 86)_____________ Equals: Net Estate before share of surviving spouse Less: Share of surviving spouse________________ Equals: Net estate before special deductions Less: Special deductions______________________ Equals: Net taxable estate Multiply:Tax Rate (Sec 84)______________________ Equals: Estate Tax Payable If there’s tax credit available: Excise tax or privilege tax Effective during the life time of the donor Tax base is the net gift within the calendar year Net gift amounting to P100,000 is exempted highest rates: Estate tax payable Less: Tax credit____________ Equals: Final estate tax payable LAW GOVERNING THE IMPOSITION OF ESTATE TAX -statute in force at the time of death of the decedent governs. 1 COMPILED NOTES: SABABAN, MAMALATEO & CHAVEZ MARIVIC B. DE GRACIA TAXATION 2 MARIVIC DE GRACIA GROSS ESTATE TWO FACTORS AFFECTING THE...

Words: 4504 - Pages: 19

Premium Essay

Intrsting

...CRITICAL REVIEW OF SECTION 14 OF THE HINDU SUCCESSION ACT, 1956 FAMILY LAW -II Submitted by: ABHINAV SINGH 2013002 SEMESTER IV DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY Visakhapatnam March 2015 TABLE OF CONTENTS 1) Acknowledgment………………………………………………….Page No. 3 2) Table of Cases…………………………………………………….Page No. 4 3) List of Abbreviation………………………………………………Page No. 5 4) Abstract…………………………………………………...............Page No. 6 5) Introduction……………………………………………………....Page No. 7 6) Scope of Section 14………………………………………………Page No. 8 7) Limited Ownership Converted into Full Ownership under Hindu Succession Act, 1956………….......Page No. 9 8) Methods by which the Women may acquire the Property..............Page No. 10 9) Constitutional Validity of Section 14(1)…………………………Page No. 11 10) Analysis of Section 14(2)………………………………………...Page No. 13 11) Conclusion………………………………………………………..Page No. 15 12) Bibliography……………………………………………………...Page No. 16 13) Websites………………………………………………………….Page No. 17 ACKNOWLEDGEMENT I have made my project titled “Critical Review of Section 14 of the Hindu Succession Act, 1956” under the supervision of Dr. Sudha Kavuri, Faculty Lecturer, Damodaram Sanjivayya National Law University. I find no words to express my sense of gratitude for Dr. K. Sudha for providing the necessary guidance at every step during the completion of this project. I am grateful...

Words: 7344 - Pages: 30

Free Essay

Kk Birla V. R.S. Lodha

...sole beneficiary. 2. Both M.P. Birla and Priyamvada Birla executed a mutual will on 10th May, in the year 1981, bequeathing their respective estate(s), barring certain specific legacies to the other and on the death of the survivor to the 'charities' to be nominated by the executors. 3. The said wills were revoked and another set of mutual wills were executed on 13th July, 1982. 4. Four executors were appointed for each of the wills, who are listed as under: Executors for Madhav Prasad Birla’s will were Smt. Priyamvada Devi Birla, Krishna Kumar Birla, Kashinath Tapuria and Pradip Kumar Khaitan Executors nominated in Priyamvada Birla’s will were Madhav Prasad Birla, Ganga Prasad Birla, Kashinath Tapuria, Pradip Kumar Khaitan. 5. 14th July, 2004: K.K. Birla, B.K. Birla and Yashovardhan Birla filed caveats in the Calcutta High Court, to oppose the grant of probate to the Will created by Mrs. Priyamvada Birla in 1999 (hereinafter referred to as the 1999 will) 6. 19th July, 2004: Caveats entered by Ganga Prasad Birla and Laxmi Devi Newar. 7. 19th July, 2004: The first respondent, R.S. Lodha filed an application for grant of probate  of 1999 Will (P.L.A. No. 204 of 2004) before the High Court of Calcutta showing Smt. Laxmi Devi Newar and Smt. Radha Devi Mohatta, the two sisters of M.P. Birla, as the only heirs and legal representatives of the testatrix. 8. 22nd July, 2004: Caveat entered by Smt. Radha Devi Mohatta. 9. R. S. Lodha (first respondent)...

Words: 2819 - Pages: 12

Premium Essay

The Doctrine of Escheat in India

...Co. Ltd v. Bombay, (1958) SCR 1122. * Shafiq and Others v. Asstt. Director of Consolidation and Others, 2011(9)ADJ24. * Reshamlal Baswan vs Balwant Singh Jwalasingh Punjabi 1994 (0) MPLJ 446. * Ramcharan v. State of Rajasthan, AIR 2006 Raj 101. * Mohammed Arshad Chowdhry v. Sajida Banoo, (1878) IL 3 Cal. As a general rule, the transfer of title of property from ancestors to their offspring has been given recognition and enforced since time immemorial. It’s also a settled proposition that the law, decides on who to confer the right of succession in case of intestate property. Statutes of distribution, based on a host of grounds (primogeniture, a preference for males over females., etc.) prescribe the sequence in which a heir(s) succeeds to one who dies without a will. However, the doctrine of escheat acts as a caveat to the general rules of succession in cases where there can be found no legally eligible relatives who can inherit the property. In such cases, the doctrine stipulates that the property revert...

Words: 3724 - Pages: 15