Chapter 48, Problem 9Q

D established a trust for the benefit of her three adult children, appointing herself as trustee. Under the terms of the trust, the income was to be divided equally among the three, except that D retained the right to vary the distribution or invade the corpus to provide for "medical emergencies, professional education, and inability of any beneficiary to support himself or herself." At D's death, the trust terminates and the corpus is distributed to Y or Y's estate. What are the likely consequences of this trust at D's death? The value of the trust corpus will be excluded from her gross estate under sections 2036 and 2038 because the "ascertainable standard" rule of Jennings v. Smith and Old Colony Trust applies. The value of the trust corpus is included in her gross estate under sections 2036 and 2038 simply because she is the grantor of the trust. The value of the trust corpus is included in her gross estate under section 2033. The value of the trust corpus will be included in her…

Dozier and his wife, daughter, and grandson lived in the house Dozier owned. At the request of the daughter and grandson, Paschall made some improvements to the house. Dozier did not authorize these, but he knew that the improvements were being made and did not object to them. Paschall sued Dozier for the reasonable value of the improvements, but Dozier argued that he had not made any contract for such improvements. Was he obligated to pay for such improvements? Why or why not? Provide a rationale or explain how you came to this conclusion.

Smith owned Blackacre in fee simple absolute. In section 3 of a properly executed will, Smith devised Blackacre as follows: “I devise my farm Blackacre to my son Darwin so long as it is used as a farm.” Sections 5 and 6 of the will made gifts to persons other than Darwin. The last and residuary clause of Smith’s will provided “All the residue of my real and personal property not disposed of heretofore in this will, I devise and bequeath to Stanford University.” What interests in Blackacre were created by Smith’s will?

Chad Parker owned an acre of property and a mobile home on that property. He sold the mobile home to David and Allison Wilson for $1,000 and sold the property to them for $10,000. These agreements were made orally. No title or deed transfers took place. The Wilsons lived in the mobile home for seven years, making $11,228.19 of improvements to the structure and to the property. After a falling out between Chad and David, Chad had the Wilsons evicted and moved back into the mobile home. Because there was no written contract between the parties, could Chad therefore legally evict the Wilsons and legally move back into the mobile home?

Benjamin is a widower who has two married children, Edward and Patricia. Patricia has two children, Perry and Paul. Edward has no children. Benjamin dies, and his typewritten will leaves all his property equally to his children, Edward and Patricia, and provides that should a child predecease him, the grandchildren are to take per stirpes. The will was witnessed by Patricia and by Benjamin's lawyer, and it was signed by Benjamin in their presence. Patricia has predeceased Benjamin. Edward claims the will is invalid. Is the will valid or invalid? What would the distribution of Benjamin's estate be if the will was invalid? What would it be if it was valid?

Denise and Evelyn agree to run a laundry business and share the profit. However, Evelyn also sells cakes on their business premises. Advise Denise as to whether she is entitled to a share of profit in the cake business.

In 2000, an unregistered parcel of land was mortgaged by owner O to M, a family friend, as collateral for a loan. O acted through his attorney-in-fact, son S, who was duly authorized by way of a special power of attorney, therein O declared that he was the absolute owner of the and, that the tax declarations/receipts were all issued in his name, and that he has been in open, continuous and adverse possession in the concept of owner. As O was unable to pay back the loan plus interest for he past 5 years, M had to foreclose the mortgage. At the foreclosure sale, M was the highest bidder. Upon issuance the sheriffs final deed of sale and registration in January 2006, the mortgaged property was turned over to M’s possession and control. M has since then developed the said property. In 2007, O died, survived by sons S and P. In 2017, after the 10th death anniversary of his father O, ion P filed a suit to annul the mortgage deed and subsequent sale of the property, etc., on the ground of…

Irene and Joy were co-owners of a parcel of land. On September 26, 2020, Irene discovered that Joy has sold her share to Yeri on August 25, 2020. The following day, Irene offered to redeem her share from Yeri, but the latter replied that Irene's right to redeem has already prescribed. Is Yeri correct?

Baron contracted in writing to purchase a piece of land from Weil for $35,000. Before the sale was completed, Weil died. Must Weil's executor go through with the sale?