One ILIT owning both a single life and survivorship policies
September 12, 2007 by RickBryan
An attorney in Wyoming posted a question on one of the listservs which received a lot of attention and debate: he asked whether it’s possible to draft one irrevocable life insurance trust (ILIT) and have that trust hold both a single life policy on the grantor, and a second-to-die contract insuring both the grantor and her spouse. The attorney’s intention was to draft two separate ILITs, but the financial institution serving as co-trustee objected, claiming one ILIT can own both types of contracts.
Surrogate holds statutory examination of Will overbroad; in terrorem clause triggered
September 8, 2007 by RickBryan
Kings County Surrogate Margarita López Torres finds Petitioner’s examination of his father’s Last Will and Testament under NY SCPA § 1404(4) and EPTL § 3-3.5(3) went beyond his statutory right to question its validity.
This case addressed an in terrorem clause (Latin for “in fear”) contained in a decedent’s Last Will and Testament. As you know, an in terrorem clause is used in a Will to forestall challenges to the validity of a Will by penalizing those who do so. It’s usually used when the testator wants to fully or partially disinherit a member of their family.