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Unformatted text preview: 2002 SUBOTNIK TRUST & ESTATE OUTLINE 1-15-02 I. Introduction to Estate Planning Uniform Probate Code (UPC) is a statute that is in effect in 10 jurisdictions all in the middle of the country, NY ignores the UPC. In NYS Trust & Estate is governed by statute: Estate Powers & Trusts Law (EPTL). Estate Tax began in 1916, before then all monies could be passed to successors w/o tax. The Estate Tax took up to 70% of the estate. The justification for the estate tax was that elite families had too much monetary power that was transferring into economic power; a permanent aristocracy should be avoided. The estate tax has decreased that fear, but the theory of the Estate Tax is the prevention of money from generating political power that could upset the democratic process. Money produces an oligarchy, a plutocracy in society, so financial inheritance must be decreased. The advantages of abolishing Inheritance: Rich get richer creating a lack of mobility in society Lack of incentive or creativity More government tax dollars This may increase productivity The disadvantages of abolishing Inheritance: Today there is less of a leisure class Less of an incentive to save and work Increases wasteful spending Increases changes in lifestyles Increases inter vivos gifts so this too must be abolished, otherwise the family of the person who in an auto acc would be greatly disadvantaged over the family of the person who died of a long illness, it does not make sense to discriminate against families where there is sudden and unexpected death. Increase of political instability Upon death in a world of no Inheritance there may be no funerals Private Property: the government has an interest in our property only to the extent that it is necessary for it to exist, property is created by private individuals and that property belongs to private individuals. Private individuals have a right to control their own property absent a serious emergency or serious government need. Abolishing inheritance goes against notions of private property & private enterprise. Definitions Intestacy: The state of dying w/o a will. The state or condition of a person having died w/o a valid will. 1 Testacy: The fact or condition of leaving a valid will at ones death. Intestate: The person who dies w/o a will. Of or relating to a person who has died w/o a valid will. Testator: The male who dies w/a will. A person who has made a will; esp. a person who dies leaving a will. Testatrix: The female who dies w/a will. A female testator, in modern usage, a person who leaves a will is called testator, regardless of sex. Beneficiary: The person who benefits under a will. A person who is designated to benefit from an appointment, disposition, or assignment (as in a will, insurance policy, etc.) one designated to receive something as a result of a legal arrangement or instrument....
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This note was uploaded on 04/17/2008 for the course LAW ? taught by Professor Harmon during the Spring '08 term at Touro NY.
- Spring '08
- Constitutional Law