FIN 440 Lecture 3: FIN 440 Ch. 2 Lecture Notes
Document Summary
What is it: the state of a decedent without a valid will that disposes of all the decent"s property. A decedent who had a valid will is said to die testate . Examples of invalid will: beneficiaries are the witnesses to the will. A surviving spouse may receive the same share of the decedent"s probate estate as a child: 1 child vs. 10 children. A spouse may share assets with in-laws. A decedent"s children are usually treated equally in intestacy, which may not be equitable. The probate court will appoint an administrator (not executor) and require a surety bond making the cost of probate increase: executor is appointed by will-maker. The decedent with a valid will can appoint an executor to serve (and without bond: different than administrator- administrator is appointed without will-maker alive. Advantages of a properly prepared and valid will. Permits the selection of an executor/executrix are the decedent"s personal representative to administer the estate.
