E XAMPLES Ted Testator and his wife Ursula were married for five years before

E xamples ted testator and his wife ursula were

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** E XAMPLES Ted Testator and his wife, Ursula were married for five years before Ted’s death. Ted’s will left all of his property to his daughter by a prior marriage, Vanna. Ted’s net probate estate was valued at $300,000, and at the time of Ted’s death, Ursula had assets of $200,000. Neither Ted nor Ursula made any inter vivos transfers. Under the UPC, does Ursula have a right to elect? o Step (1) – the augmented estate is $500,000. (T’s $300,000 + U’s $200,000) o Step (2) – U’s elective share is ($500,000) x (15%) = $75,000. o Step (3) – $200,000 of U’s was included in the augmented estate. So, under § 2- 209(a)(2), we count the “applicable percentage” of that amount against what she entitled to elect. The applicable percentage here is 30% (twice the 15% elective share percentage). 30% of $200,000 = $60,000. $60,000 < $75,000 so Ursula is entitled to elect up to $15,0000. What if Ted and Ursula had been married for 15 years? o Step (1) – The augmented estate is the same - $500,000. o Step (2) – U’s elective share is 50% of $500,000 or $250,000. o Step (3) – Since they were married for 15 years 100% of her contribution to the augmented estate goes to satisfy her elective share. But $200,000 < $250,000, so she is entitled to elect up to $50,000. Debbie Decedent dies with a will which leaves “one-half my property to my husband, Edgar, and the other one-half to be evenly divided between my children Felix and Gertrude.” When Debbie died, Debbie and Edgar had been married for thirty years, and had two children, Felix and Gertrude. Debbie, five years before her death created an irrevocable trust, reserving income to herself for life, and directing that at her death, the principal should be distributed to her alma mater, Georgetown University. The trust principal is, and has been since Debbie created
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22 the trust, $50,000. Debbie and Edgar shared a $50,000 joint bank account, with the proceeds payable to the survivor. Debbie had also purchased a $200,000 life insurance policy, and had named her daughter Gertrude as beneficiary. (Note that none of these assets passed through Debbie’s probate estate.) At Debbie’s death, her net probate estate was valued at $300,000 and Edgar’s own assets were valued at $200,000. Assuming that the Uniform Probate Code is in effect at Debbie’s Death, does Edgar have a right to elect? o Step (1) – Calculate the value of the augmented estate: $300,000 (Debbie’s net probate estate) + $50,000 (The Trust; under 2-205(2) b/c she retained the right to income from the property) + $200,000 (Life insurance under § 2-205(1)(iv)) + $25,000 (D’s share of the joint bank account under 2-206(2)) + $25,000 (E’s share of the joint bank account under 2-207(a)(1)(ii)) + $200,000 (E’s own assets) --------------------------------- $800,000 = total value of augmented estate. o Step (2) – Calculate Edgar’s elective share. ($800,000) x (50%) = $400,000. o Step (3) – Does Edgar get to elect? What is counted in satisfaction? Which dispositions count against Edgar’s share? The probate and non-probate transfers to Edgar and the applicable percentage (here 100%) of his contribution.
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