Wills, Trusts & Estates

# Wills, Trusts & Estates — Grounded Study Notes


## Wills — Execution & Validity

### Integration & Incorporation by Reference  
(No fully developed cases on holographic wills or formal execution defects retrieved in this query; see foundational rules below.)

### Testamentary Capacity  
US courts apply a threshold-based testamentary capacity standard. The testator must have:  
1. Capacity to know the nature of his/her property  
2. Capacity to know the natural objects of his/her bounty (family & dependents)  
3. Capacity to know the disposition being made  
4. Capacity to understand the relationship between elements  

This standard (Banks v. Goodfellow adapted) is NOT explicitly detailed in the retrieved cases but is referenced as foundational doctrine in probate courses.

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## Will Substitutes & Non-Probate Transfers

### Joint Tenancy with Right of Survivorship  
A homesteader's inceptive title prior to patent (full legal title) is more than mere color of title. The homesteader has a substantial inceptive right of possession against trespassers (except the US itself) and can bring suit for trespass. When a homesteader complies with all statutory requirements and receives a patent, that patent relates back to the date of entry, cutting off intervening claims by third parties who committed trespass during the pendency of the entry.  
**Authority:** Knapp v. Alexander-Edgar Lumber Co., 237 U.S. 162 (1915) — US Supreme Court. Held: homestead entry gives entryman inceptive title sufficient to sue for trespass; patent relates back to entry date; voluntary compromise by government with trespasser made without notice to entryman does not bar homesteader's claim; homesteader entitled to highest market value of timber wrongfully taken, not merely compromise amount accepted by government.

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## Trust Creation & Classification

### Express Trust — Beneficiary Interest  
Third-party creditors may have direct enforcement rights under a contract if they are creditor beneficiaries of the promise, or if creditors are direct (not collateral) beneficiaries of a commitment made by a third party. A creditors' committee in bankruptcy may receive an offer concerning a plan of reorganization; if that offer is made in exchange for valid consideration, the creditors (as third-party beneficiaries) may enforce the promise directly against the promisor, even though the committee itself did not provide consideration and cannot bind creditors to acceptance.  
**Authority:** Donlevy's, Inc. (In re), 111 B.R. 1 (D. Mass. Bankr. 1990) — Bankruptcy Court. Held: creditors' committee may negotiate on behalf of creditor class; when Names for Dames agreed to fund a 39% plan in exchange for control of debtor corporation via stock transfer from Gimbel, creditors became direct third-party beneficiaries of that promise; creditors have direct enforcement rights notwithstanding committee's lack of independent consideration.

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## Limitations on Testation & Marital Rights

### Restrictive Covenants & Burden of Running with Land  
Party claiming benefit of a restrictive covenant must prove it runs with the land. Restrictions in a deed are presumed personal to the grantor unless contrary intention appears. The party asserting that a restriction runs with land bears the burden of proof. Restrictions are personal to grantor if:  
- No general subdivision plan exists at time of conveyance  
- No uniform restrictions imposed by lot number on all affected parcels  
- Grantor has parted with all interest in land that could be "benefited" by the restriction  

Even if grantor testifies as to subjective intent, parol evidence of intent is inadmissible; the restriction must be construed from the deed itself. All doubts and ambiguities are resolved in favor of unrestricted use of property (contra proferentem against the grantor).  
**Authority:** Stegall v. Williams, 278 N.C. 95 (1971) — same as above.

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## Estate Administration & Fiduciary Duties

### Fiduciary Capacity & Jurisdiction  
A bankruptcy court has nationwide personal jurisdiction over parties to a reorganization plan via service of process and the nationwide reach of bankruptcy jurisdiction. Similarly, in intestate/probate matters, a court of competent jurisdiction (probate court, orphans' court, or surrogate's court depending on jurisdiction) has authority to appoint administrators and resolve disputes over qualification, priority, and removal of fiduciaries. Courts cannot exercise this power without notice to parties with an interest in the estate (e.g., heirs, other potential administrators).  
**Authority:** Uberti's Estate, 25 Pa. D. & C. 112 (1935) — same as above; Donlevy's, 111 B.R. 1 (1990) — same as above.

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## Summary of Extracted Real Holdings

1. **Stegall v. Williams (278 N.C. 95, 1971):** Restrictive covenants without dominant estate / general plan = personal only; don't run with land.  
2. **Uberti's Estate (25 Pa. D. & C. 112, 1935):** Foreign consul not entitled to administer US citizen's estate absent statutory basis; attorney-in-fact nomination available.  
3. **Knapp v. Alexander-Edgar Lumber Co. (237 U.S. 162, 1915):** Homesteader's inceptive title is substantial, not color; patent relates back; entitled to highest market value damages for trespass.  
4. **Donlevy's, Inc. (111 B.R. 1, 1990):** Creditors are direct third-party beneficiaries; can enforce plan-funding promise; committee can negotiate without independent consideration.