Latafat Case

Estate Planning Case

1) Yes, Latafat does need a will. He needs it so that he can control the distribution of his property and assets at death. If he were to die without a will, the state’s intestacy laws would go into effect ( The distribution scheme provided by each state for those individuals that die without a valid will).

2) Common features that need to be incorporated into a will are:

• Introductory clause to identify the testator,

• Establishment of the testator’s domicile & residence,

• Identification of the spouse & children of the testator,

• A declaration that this is the last will & testament of the testator,

• Revocation of all prior wills & codicils by the testator,

• Identification and selection of the executor and successor executor by the testator,

• A directive for the payment of debts clause,

• A directive of the payment of taxes clause,

• A disposition of tangible personal property clause,

• A disposition of real estate clause (residence),

• A clause regarding the specific bequests of intangibles and cash,

• A residuary clause,

• A clause regarding who will pay taxes on bequests,

• An appointment and powers clause, that names fiduciaries, guardians, tutors, trustees and so on,

• A testators signature clause,

• A witness clause,

• A self proving clause

3) All of the property owned by Latafat except for the Gold Mine International shares are in his name and therefore he is the only owner (Fee Simple Ownership) because of this he has the right transfer them freely and whenever he dies they transfer via his will or intestacy laws. Now, the Gold Mines International Shares are held in joint tenancy with his wife. Because of this they can be transferred freely without consent and once he dies the full ownership will transfer to her, however she is still responsible for any debts he may have with creditors. Now the Santa Barbara property is in a community property state ( California) meaning him and his wife have equal ownership....