07003

Question Analysis

In 1996, Hal, married to Wanda, created a trust (This is a Trust question.) that he funded with $200,000 of his separate property. Trustee, Inc., named as trustee, was directed to pay the income to Hal for life and the remainder to Wanda. At the same time, Hal executed a valid will that provided as follows:

Article 1: $20,000 to my friend Frank.

Article 2: $35,000 to the person named on a sheet of pink paper dated December 31, 1989 and located in my top desk drawer.

Article 3: The residue of my estate to my son, Stan.

In 1998, Wanda executed a valid will solely in favor of her son, Stan. Shortly thereafter, Wanda died while giving birth to the couple's second child, Dawn.

Later in 1998, while grieving Wanda's death, Hal regularly consulted a fortune teller, Florence. In 1999, based on Florence's predictions that Stan would become a criminal, Hal executed a codicil to his 1996 will, changing the residuary beneficiary from Stan to Florence.

In 2000, Hal and Frank, passengers on a commercial plane were simultaneously killed when the plane exploded on takeoff. The pink sheet of paper referred to in Article 2 of the 1996 will provided: "To my next-born child, if any."

1. To whom should the trust property be distributed? Discss.

2. To whom should Hal's estate be distributed? Discuss. Answer according to California law.