Last Will and Testament of John Smith
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LAST WILL AND TESTAMENT OF JOHN SMITH March __, 2013 [SAMPLE FROM SOUTH CAROLINA WILLS & TRUSTS WITH TEXT OMITTED FOR DEMO PURPOSES] Prepared by Brenda Smith Law offices of Brenda Smith 1230 Pine Tree Lane Charleston, South Carolina 29401 843-777-7777 Synopsis of Last Will and Testament of John Smith This abbreviated summary is for convenience only and should not be relied upon in interpreting the Will. The Will contains other significant provisions not described in this summary. Article 1 (Family) identifies family members and references. Article 2 (Distribution of My Estate) makes specific gifts of tangible personal property, cash, stock, and real property, gives all your remaining tangible personal property, including [TEXT OMITTED FOR DEMO PURPOSES] Article 3 (Administration of Marital Trust) establishes a trust for the marital gift, providing for payment of all income to your wife at least annually, along with a discretionary invasion of principal for your wife to maintain her standard of living. In addition, your wife may [TEXT OMITTED FOR DEMO PURPOSES] Article 4 (Administration of Family Trust) establishes a trust during your wife's lifetime which continues as a pot trust for your descendants after her death. The Family Trust provides for payment of all income to your wife and discretionary distributions of principal to your wife. [TEXT OMITTED FOR DEMO PURPOSES] Article 5 (Trust for Susan Smith) is a protective trust which prevents an outright distribution to the beneficiary. Unlike a standby trust, which terminates at a certain age, Susan Smith's distribution is held in trust during her lifetime and then passes to TBD. The Trustees may make discretionary income and principal payments. Article 6 (Standby Trust) creates a standby trust for any amounts that might be distributable to a beneficiary other than your wife who is under age 21 or whom the Trustees deem to be incapable of handling his or her affairs. Article 7 (Appointment of Guardian) names a person(s) to have custody of minor children and to serve as guardian(s). Article 8 (Appointment of Personal Representative) names your wife as your Personal Representative and provides for alternates. No Personal Representative is required to post bond. Article 9 (Appointment of Trustee) names Samuel Smith as the Trustee of all trusts created by this Will. This article also names alternate Trustees. Article 10 (Provisions Governing Trustees) specifies procedures if a Trustee becomes incapacitated; allows for the resignation of Trustees; provides for the appointment of successor Trustees; allows for the removal of Trustees; enumerates powers and duties of successor [TEXT OMITTED FOR DEMO PURPOSES] Article 11 (Equalization of Estates) directs that if your wife dies within six months after your death, the marital gift is reduced to obtain the lowest combined estate taxes for both estates. Article 12 (Funding and Qualification of Marital Trust) sets out rules for funding the Marital Trust to preserve certain tax benefits and for administrative convenience, grants your [TEXT OMITTED FOR DEMO PURPOSES] Article 13 (Survival Provisions) provides that if you and your wife die simultaneously, for purposes of insurance on your life owned by your wife and for any devises made to you [TEXT OMITTED FOR DEMO PURPOSES] Article 14 (Protection of Interests) protects beneficiaries from creditors and prevents them from selling their interest in the trust. (Many state laws provide exceptions for taxes, alimony, and child support.) Article 15 (Substance Abuse) gives the Trustees the right to withhold distributions to any beneficiaries who are engaging in substance abuse or are otherwise dependent. Article 16 (Generation-Skipping Tax Provisions) sets out rules for dealing with generation-skipping tax issues. Specific instructions apply to splitting trusts to maximize benefit of exemption, paying taxes, and distributing assets to different beneficiaries so as to minimize the generation-skipping tax. Article 17 (Payments of Obligations, Expenses, and Taxes) contains provisions on the payment of debts, expenses, and taxes. Your legally enforceable obligations (except those [TEXT OMITTED FOR DEMO PURPOSES] Article 18 (Fiduciary Powers) grants broad powers to the Personal Representative and Trustees to facilitate administration of your estate and the trusts. Article 19 (Environmental Provisions) gives the Trustees powers to deal with environmental issues. The Trustees will not be held personally liable if assets in any trust created under the Will are diminished as a result of complying with environmental laws. Article 20 (Savings Clauses) limits term of any trust to comply with prohibition on perpetual trusts, declares intent to qualify for full marital deduction, and protects qualified plan proceeds from creditors and requests longest pay out period allowed. Article 21 (Nonmutual Will) declares that your Will is not reciprocal to any Will executed by your wife and she is not barred from changing or revoking her Will. Article 22 (Administration and Construction) provides general instructions for interpretation and application of the terms of your Will and for administration of trusts. 2 Article 23 (Applicable Law; Trust Situs) confirms that South Carolina law applies to any trust created, and specifies terms for transferring a trust to another jurisdiction. Article 24 (Miscellaneous Provisions) includes definitions and other miscellaneous provisions. 3 TABLE OF CONTENTS Article 1 Family .............................................................................................................................. 1 Article 2 Distribution of My Estate ................................................................................................ 1 2.1 Specific Gifts of Tangible Personal Property ................................................................... 1 2.2 If Wife Survives ............................................................................................................... 1 2.3 If Wife Does Not Survive................................................................................................. 2 Article 3 Administration of Marital Trust ....................................................................................... 2 3.1 Distribution of Income ..................................................................................................... 2 3.2 Distribution of Principal ................................................................................................... 2 3.3 Withdrawal Rights............................................................................................................ 2 3.4 Special Power of Appointment ........................................................................................ 3 3.5 General Power of Appointment........................................................................................ 3 3.6 Distribution of Remaining Assets .................................................................................... 3 Article 4 Administration of Family Trust ....................................................................................... 3 4.1 During Wife's Lifetime .................................................................................................... 3 4.2 At Death of Survivor ........................................................................................................ 3 Article 5 Trust for Susan Smith ...................................................................................................... 4 5.1 Distribution of Principal and Income ............................................................................... 4 5.2 General Power of Appointment........................................................................................ 4 5.3 Termination of Trust ........................................................................................................ 4 Article 6 Standby Trust ................................................................................................................... 4 Article 7 Appointment of Guardian ................................................................................................ 5 Article 8 Appointment of Personal Representative ........................................................................ 5 Article 9 Appointment of Trustee ................................................................................................... 5 Article 10 Provisions Governing Trustees ...................................................................................... 5 10.1 Independent Trustee Required ......................................................................................... 5 10.2 Incapacity of Trustee ........................................................................................................ 5 10.3 Resignation ....................................................................................................................... 6 10.4 Power to Name Other Trustees ........................................................................................ 6 10.5 Removal of Trustees......................................................................................................... 6 10.6 Powers of Successor Trustees .......................................................................................... 6 10.7 Accountings ...................................................................................................................... 6 10.8 Acts by Other Fiduciaries ................................................................................................