Weekly Assignment 5

Chaitanya Choudhary
FIN405
Dr. Howard Lee

Probate-
Probate is a legal process that takes place after someone dies to prove the validity of their
will, settle their debts, and distribute their assets to their heirs or beneficiaries. Usually
necessary when a deceased person possessed property in their sole name, had other
assets that were not jointly owned, or did not have a designated beneficiary, the procedure is
overseen by a court.

The court will supervise the payment of any unpaid obligations and taxes owed by the
deceased during probate. The remaining assets will then be distributed in accordance with
the directions in their will, or in the absence of a will, in accordance with state law. The
probate procedure can be difficult and drawn out, and it may require paying attorneys' fees
and attending court hearings.

If a person passes away and leaves a will specifying how their assets should be dispersed,
that person's will might serve as a real-world example of probate. The will will then be
examined by the probate court to make sure it is legitimate and binding on the law. The
residual assets will then be distributed to the designated beneficiaries in the will after the
court supervises the payment of any outstanding obligations and taxes.

Executor-
An executor is a person entrusted with the responsibility of acting as the testator's personal
representative. A decedent's obligations and taxes must be settled, the estate's assets must
be gathered and valued, and assets must be distributed to the beneficiaries specified in the
will. An executor must be ready to serve for the full duration of the probate procedure, which
can take anywhere between nine months and two or three years.

The executor of a will should be someone who is attentive to the beneficiaries' emotional
and financial requirements, such as a close relative or another caring person.
It is desirable to have a trusted family member fill this position, but only if they are qualified
to execute the duties of estate administration. A person should be aware of which specialist
to contact for assistance if family members lack the requisite qualifications. Executors who
are family members must operate impartially and refrain from taking activities that provide
them a clear advantage over other estate beneficiaries.

Maya (19) and her mother Sunita (50), Mary asked Maya to become her executor. But
because Maya was too young and wasn't financially stable, she refused to take this
responsibility. Therefore, Sunita appointed a bank as an executor instead. The court
interpreted this request as a provision in which Sunita had entrusted the bank with the
responsibility of carrying out estate administration on her account.

Abatement Statue-
A provision known as an abatement statute allows certain legal actions, such as a lawsuit or
criminal charges, to be reduced, eliminated, or suspended. Abatement statutes are intended
to stop legal actions from going forward or from being imposed when the parties involved are
no longer able to continue the proceedings or fulfill their responsibilities.

A real-life example of an abatement statute could be a wrongful death lawsuit. The plaintiff
may be allowed to ask for an abatement of the case under the abatement act if the
defendant in the lawsuit dies before the case is concluded since they are no longer able to
defend themselves or pay any damages awarded. This would effectively put an end to the
litigation and stop any further legal action being taken against the estate of the deceased
defendant.

Ademption Statue-

Ademption is a legal term that describes a situation in which a person's pledged or

bequeathed property or assets are no longer present or have been sold prior to the will's
effective date. The treatment of property or assets under a will that are no longer present or
have been sold is governed by an ademption act.

A real-life example of ademption could be if a person creates a will that bequeaths a specific
piece of property, such as a family heirloom, to their child. Yet, the asset is either sold or
given away as a gift before to death. Because the particular item of property is no longer part
of the estate, the gift would be deemed redeemed in this situation. The appropriate
jurisdiction's ademption statute would then dictate how the gift should be handled, possibly
by giving the child access to another asset of comparable value or by giving the child a
proportionate share of the remaining assets.

Will Sustitutes-
A will substitute is a legal arrangement or document that allows a person to transfer assets
or property not covered by a standard will. Living trusts, shared tenancy agreements, and
payable-on-death accounts are some examples of will substitutes, which are used in place of
wills.

A person who establishes a revocable living trust and transfers their property and assets into
the trust throughout their lifetime is an actual example of a will substitute. The distribution of
the assets upon a person's passing is outlined in the trust agreement, and the assets held in
the trust are not subject to the probate process. The trust serves as a replacement for a will
since it enables the transfer of assets without the use of a traditional will while still ensuring
the distribution of the person's possessions after death.

Ancillary probate-

When a deceased person had property in a state other than their state of residence, a
probate action known as an ancillary probate was required. In this scenario, the deceased
person's state of residence would be the site of the primary probate action, while the state
where the out-of-state property is located would be the site of the ancillary probate
proceeding.
Consider a New Yorker who has a vacation property in Florida as an example. The person's
principal probate proceeding would be held in New York after their passing. But, in order to
transfer ownership of the vacation property to the person's heirs or beneficiaries, a separate
probate procedure would also be necessary in Florida.
Because each state has its own laws governing the division of property, it may be essential
to follow those regulations in order to transfer ownership of the property to the deceased
person's heirs or beneficiaries. For this reason, ancillary probate may be required. Because
several probate actions may need to be started in several states, ancillary probate can
lengthen the process and increase costs.

Situs-
A situs, in law, is the place or territory where property is situated or believed to be situated
for the purposes of taxation, succession, or other legal issues. A situs might relate to a
geographical area, like the state where real estate is situated, or to a legal or regulatory
jurisdiction, like the nation where a bank account is kept.

A individual who resides in one state but has a second property there is an example of a
situs in real life. The state where the property is located would be the vacation home's situs,
and as a result, that state would set the rules and laws that apply to the property, including
zoning regulations, property taxes, and probate procedures.