.

Course Contents/Syllabus:

Weightage (%)

Module1

10

ABC of the Indian Financial and Investment Industry- Basic Concepts, The Financial System,
Features of Securities and Financial Markets in India- Flow of Funds(Chapter 1) .
Participants in the Indian Finance System, Retail Financial Services, Wholesale Financial
Services,, Investment Banks, Fund Managers, Stock Brokers, Insurance,(Chapter 2)

Module II:

20

Indian Economic Environment- Indian Economy, Economic Policies and Macroeconomics,

Business Cycles, Multiplier Model (Chapter 3)

L T P/ S

SW/F W

TOTAL CREDIT UNITS 3 - - - 3

Module III:

20

Financial Counseling Basic Communication Principles, Attending and Listening Skills,

Understanding and meeting client marketing of Financial Services,

Module IV

20

Tools for Financial Planning- Planning with Personal Financial Statements- Time Value for
Money, Tax Concepts for Planning (Part I Personal Finance) Personal Investing, Equity
Stocks,, Debts, Bonds, Mutual Funds,, Asset Allocation (Part 5 of Personal Finance)

Module V Retirement and Estate Planning, Drafting of a Will, Types, Legal Frame Work,
Administration of Will, Execution of a Will (Chapter 9 of IIBF)

25

Module VIII Beyond Class Room ……. A student centric module wherein students will be
required to READ, COMPREHEND, PRESENT LEARN, & DISCUSS Articles/ Reports etc.
as identified / selected by them OR core faculty on matters relating to Banking.

5
ABC of the Indian Financial and Investment Industry- Basic Concepts,, The Financial
System, Features of Securities and Financial Markets in India- Flow of Funds(Chapter 1) .
Participants in the Indian Finance System, Retail Financial Services, Wholesale Financial
Services,, Investment Banks, Fund Managers, Stock Brokers, Insurance,

ABC of the Indian Financial and Investment Industry- Basic Concepts

Indian Financial System

The basic structure of Indian Financial System is divided into four components which are:

 Financial Services
 Financial Markets
 Financial Instruments
 Financial Institutions
Financial Services
As the name suggests financial services are the services provided by the Financial
Institutions. These services generally include the banking services, Foreign exchange services,
investment services, insurance services and few others. Following is a very brief description of
the services
1. Banking Services – Includes all the operations provided by the banks including to the
simple deposit and withdrawal of money to the issue of loans, credit cards etc.
2. Foreign Exchange services – this includes the currency exchange, foreign exchange
banking or the wire transfer
3. Investment Services – It generally includes the asset management, hedge fund
management and the custody services
4. Insurance Services – It deals with the selling of insurance policies, brokerages, insurance
underwriting or the reinsurance
5. Some of the other services include the advisory services, venture capital, angel
investment etc..
Financial Intermediaries
A financial intermediary is an institution which connects the deficit and the surplus. The
best example of an intermediary can be a bank which transforms the bank deposits to bank
loans. The role of financial intermediary is to channel funds from people who have extra
inflow of money i.e., the savers to those who do not have enough money to fulfill the needs
or to carry out the basic activities i.e. the borrowers.
Functions of Financial Intermediaries
Functions of Financial Intermediary are basically classified in three parts which are as
follows:

 Maturity transformation – Deals with the conversion of short-term liabilities to long

term assets.
 Risk transformation – Conversion of risky investments into relatively risk-free ones.
 Convenience denomination – Way of making the unmatched matching which is
matching small deposits with large loans and large deposits with small loans.
Financial Intermediaries are classified into two types namely, Depository and Non-
Depository Institutions.

Financial Instrument
Financial Instrument is a trade-able asset which can be in terms of cash, agreement,
evidence of an ownership in an entity; or a contractual right which has the right to deliver
cash or any kind of asset.
The types of financial instrument used worldwide are in the form deposits, stock, and debt.

1. Deposits – Deposit in a layman’s term, means to save or to keep safely. Deposits can be
made either with banking or non-banking firm.
2. Stock – Stocks represents the ownership of the issuing company. It is a form of corporate
equity ownership where in the total stock of the company is divided into shares and the
individuals has the provision to trade the shares in the exchange.
3. Debts – Unlike the stocks, financial assets which are in the form of debts create an
obligation on the borrower of the fund to repay the amount borrowed. The debt
instrument, thus in a sense, is a contract entered into by the borrower and the lender
which specifies the amount of fund borrowed, period of borrow, the rate of interest that
will be charged and the repayment methods.
Financial Market
Financial Market is a mechanism that allows people to indulge themselves in the buying
and selling i.e. trade of financial securities (for example stocks and bonds), commodities (for
example precious metals) at prices that reflect the market’s effectiveness.
Following are the verticals of financial market:
1) Capital Market – Market where business enterprises or government entities raise fund for
long term using the weapon of securities or debts. It includes the Stock market (equities) and
Bond Market (debt) for fund raising.
2) Commodity Market – Commodity is a good for which there is a demand by the people
thus commodity market is the market where such goods are traded.
3) Money Market – Deals with the assets involved in short-term borrowing and lending
with original maturities ranging from a period of one year or even lesser time frames.
4) Derivative Market – The derivative market is the financial market meant for derivatives.
The financial instruments like the futures contracts or options, which are derived from other
forms of assets, are traded in these markets.
5) Insurance Market – Deals with the trading of insurance policies.
6) Futures Market – A vertical in financial market where people can trade
standardized futures contracts which is a contract to buy specific number of quantities of
a commodity or financial instrument at a specified price with the delivery of the commodity
or financial instrument set at a specified time in the future.
7) Foreign Exchange Market – Also known as Forex is a global, worldwide decentralized
financial market meant only for the trading of currencies.
 Financial Services in India

 The asset management industry in India is among the fastest growing in the world. As of
November 2017, 42 asset management companies were operating in the country
 At the end of March 2018, the assets under management of the mutual fund industry stood
at Rs 21.36 lakh crore (US$ 331.42 billion).
 India registered a record inflow of amount of US$ 51.02 billion in mutual funds in FY 2016-
17. According to the Association of Mutual Funds in India (AMFI) data, this was the highest
investment in mutual fund schemes since the fiscal 1999-2000.
 The number of mutual fund (MF) portfolios have increased to 66.5 million as of December
2017, backed by rising interest in MFs among investors.
 Mutual fund (MF) equity portfolios in India reached a 10-year high of 49.3 million, by end of
2017.

Introduction
India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payments banks to be created recently thereby
adding to the types of entities operating in the sector. However, the financial sector in India
is predominantly a banking sector with commercial banks accounting for more than 64 per
cent of the total assets held by the financial system.
The Government of India has introduced several reforms to liberalise, regulate and enhance
this industry. The Government and Reserve Bank of India (RBI) have taken various
measures to facilitate easy access to finance for Micro, Small and Medium Enterprises
(MSMEs). These measures include launching Credit Guarantee Fund Scheme for Micro and
Small Enterprises, issuing guideline to banks regarding collateral requirements and setting
up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by
both government and private sector, India is undoubtedly one of the world's most vibrant
capital markets. In 2017,a new portal named 'Udyami Mitra' has been launched by the Small
Industries Development Bank of India (SIDBI) with the aim of improving credit availability
to Micro, Small and Medium Enterprises' (MSMEs) in the country. India has scored a perfect
10 in protecting shareholders' rights on the back of reforms implemented by Securities and
Exchange Board of India (SEBI).
Market Size
The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under
Management (AUM). Total AUM of the industry stood at Rs 23.26 lakh crore (US$ 360.90
billion) as of April 2018. At the same time the number of Mutual fund (MF) equity portfolios
reached a record high of 2.27 billion in February 2018.
On account of rise in investments in the Mutual Funds and other financial instruments, the
revenues of the brokerage industry in India are forecasted to grow by 15-20 per cent to reach
Rs 18,000-19,000 crore (US$ 2.80-2.96 billion) in FY2017-18, backed by healthy volumes and a
rise in the share of the cash segment.
Another crucial component of India’s financial industry is the insurance industry. The
insurance industry has been expanding at a fast pace. The total first year premium of life
insurance companies grew 17.35 per cent year-on-year to reach US$ 25.44 billion during
April 2017-February 2018.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also
witnessed rapid expansion. The total amount of Initial Public Offerings increased to Rs
84,357 crore (US$ 13,089 million) by the end of FY18.
Over the past few years India has witnessed a huge increase in Mergers and Acquisition
(M&A) activity. The total value of M&A in India rose 53.3 per cent year-on-year to US$ 77.6
billion in 2017 from US$ 50.6 billion in the preceding year.
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint
venture with Ebix Inc to build a robust insurance distribution network in the country
through a new distribution exchange platform.
Investments/Developments

 Global payments solution giant Mastercard has launched its first technology lab in
Pune, which will enable India to move towards digital economy and financial
inclusion.
 Four metro cities of Delhi, Mumbai, Bangalore and Chennai can reap benefits of US$
7.2 billion annually by increasing payments through digital means##.
 BankBazaar, a financial marketplace start-up in India, raised US$ 30 million in a
funding round led by Experian Plc, a credit rating agency based in UK, taking the
company's total funding to US$ 110 million.
 Private equity (PE) investments in India increased 59 per cent to US$ 24.4 billion in
2017, with average deal size of US$ 42.8 million, according to data provided by
Venture Intelligence.
 Private equity and venture capital firms recorded investments worth US$ 7.9 billion
with 180 deals during January-March 2018.

Government Initiatives
  SEBI plans to allow investors to make mutual funds transactions worth up to Rs
50,000 (US$ 750) a month through digital wallets, as part of its efforts to digitise the
distribution processes for all financial products. It also plans to allow immediate
credit to customer’s bank accounts on liquid mutual funds redemption to attract
retail customers as well as boost inflows.
 The Government of India has relaxed norms for small merchants with a turnover of
up to Rs 2 crore (US$ 300,000), allowing them to pay 6 per cent of deemed profit in
tax instead of 8 per cent of total turnover or gross receipts received through banking
channels or digital means for FY 2016-17, in a bid to encourage cashless transactions
in the country.
 The lending target has been fixed at Rs 244,000 crore (US$ 36.46 billion) for 2017-18.
 The Government of India launched the 'Bharat 22' exchange traded fund (ETF),
which will be managed by ICICI Prudential Mutual Fund, and is looking to raise Rs
8,000 crore (US$ 1.22 billion) initially.
 In April 2018, the Government of India issued minimum FDI capital requirement of
US$ 20 million for unregistered /exempt financial entities engaged in ‘fund based
activities’ and threshold of US$ 2 million for unregistered financial entities engaged
in ‘non-fund based activities’.

Road Ahead

 India is today one of the most vibrant global economies, on the back of robust
banking and insurance sectors. The relaxation of foreign investment rules has
received a positive response from the insurance sector, with many companies
announcing plans to increase their stakes in joint ventures with Indian companies.
Over the coming quarters there could be a series of joint venture deals between
global insurance giants and local players.
 The Association of Mutual Funds in India (AMFI) is targeting nearly five fold growth
in assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more
than three times growth in investor accounts to 130 million by 2025.
 India's mobile wallet industry is estimated to grow at a Compound Annual Growth
Rate (CAGR) of 150 per cent to reach US$ 4.4 billion by 2022 while mobile wallet
transactions to touch Rs 32 trillion (USD $ 492.6 billion) by 2022.

The Financial System

A financial system (within the scope of finance) is a system that allows the exchange of funds
between lenders, investors, and borrowers. Financial systems operate at national, global, and
firm-specific levels .They consist of complex, closely related services, markets, and institutions
intended to provide an efficient and regular linkage between investors and depositors.
Money, credit, and finance are used as medium of exchange in financial systems. They serve as
a medium of known value for which goods and services can be exchanged as an alternative
to bartering .A modern financial system may include banks (public sector or private
sector), financial markets, financial instruments, and financial services. Financial systems allow
funds to be allocated, invested, or moved between economic sectors. They enable individuals
and companies to share the associated risks.

The components of a financial systems

Financial institutions
Financial institutions provide financial services for members and clients. It is also termed as
financial intermediaries because they act as middlemen between the savers and borrowers.
Banks
Banks are financial intermediaries that lend money to borrowers to generate revenue. They are
typically regulated heavily, as they provide market stability and consumer protection. Banks
include:

 Public banks
 Commercial banks
 Central banks
 Cooperative banks
 State-managed cooperative banks
 State-managed land development banks
Non-bank financial institutions
Non-bank financial institutions facilitate financial services like investment, risk pooling,
and market brokering. They generally do not have full banking licenses or are not supervised by
a bank regulation agency. Non-bank financial institutions include:

 Finance and loan companies

 Insurance companies
 Mutual funds
 Commodity traders

Financial markets are markets in which securities, commodities, and fungible items are traded at
prices representing supply and demand. The term "market" typically means the institution of
aggregate exchanges of possible buyers and sellers of such items.
Primary markets
The primary market (or initial market) generally refers to new issues of stocks, bonds, or other
financial instruments. The primary market is divided in two segment, the money market and the
capital market.
Secondary markets
The secondary market refers to transactions in financial instruments that were previously issued.
Financial instruments
Financial instruments are tradable financial assets of any kind. They include money, evidence of
ownership interest in an entity, and contract
Cash instruments
A cash instrument's value is determined directly by markets. They may include securities, loans,
and deposits.
Derivative instruments
A derivative instrument is a contract that derives its value from one or more underlying entities
(including an asset, index, or interest rate)
Financial services
Financial services are offered by a large number of businesses that encompass the finance
industry. These include credit unions, banks, credit card companies, insurancecompanies, stock
brokerages, and investment funds.

Features of Securities and Financial Markets in India- Flow of Funds

Participants in the Indian Finance System
Retail Financial Services
Wholesale Financial Services

CONCEPT
Wholesale banking is the provision of services by banks to larger customers or
organizations such as mortgage brokers, large corporate clients, mid-sized
companies, real estate developers and investors, international trade finance
businesses, institutional customers (such as pension funds and government
entities/agencies), and services offered to other banks or other financial institutions
Wholesale finance refers to financial services conducted between financial services
companies and institutions such as banks, insurers, fund managers, and
stockbrokers.
Modern wholesale banks engage in:

 Finance wholesaling
 Underwriting
 Market making
 Consultancy
 Mergers and acquisitions
 Fund management

Investment Banks, Fund Managers, Stock Brokers, Insurance

INVESTMENT BANKS
FUND MANAGERS

A fund manager is responsible for implementing a fund's investing strategy and

managing its portfolio trading activities. A fund can be managed by one person, by
two people as co-managers, or by a team of three or more people. Fund managers
are paid a fee for their work, which is a percentage of the fund's average assets
under management (AUM)

To qualify for a position in fund management (mutual funds, pension funds, trust
funds or hedge funds), individuals must have a high level of educational and
professional credentials and appropriate investment managerial experience.
Investors should look for long-term, consistent fund performance with a fund
manager whose tenure with the fund matches its performance time period.

The main benefit of investing in a fund is trusting the investment

management decisions to the professionals. The quality of the fund manager is one
of the key factors to consider when analyzing the investment quality of any fund.
Fund Management

Most fund managers often pursue a Chartered Financial Analyst (CFA) designation
as a first step in becoming the head stock-picker for a portfolio. CFA candidates
undergo rigorous coursework pertaining to investment analysis and portfolio
management. Typically, these analysts assist portfolio managers with individual
research on investment ideas and subsequent buy, sell or hold recommendations.
After a number of years working for the fund, familiarity with fund operations and
management style aid in the analyst in a career path. Successful CFAs build a quality
case for an internal promotion to manager if the opportunity arises.

Day-to-Day Responsibilities of a Fund Manager

Primarily, fund managers research and determine the best stocks, bonds or
other securities to fit the strategy of the fund as outlined in the prospectus, then buy
and sell them. At larger funds, the fund manager will have a support staff
of analysts and traders who will perform some of these activities. At some
investment companies, multiple managers will oversee client money, and each may
be responsible for a portion or make decisions via committee. Some other
responsibilities of the fund manager rule include preparing reports on how well the
fund is performing for clients, developing reports for potential clients to know the
risks and objectives of the fund and identifying clients and companies who may
make good fits as clients.

STOCK BROKERS

Stockbroker is a regulated professional individual, usually associated with a brokerage

firm or broker-dealer, who buys and sells stocks and other securities for
both retail and institutional clients through a stock exchange or over the counter in return
for a fee or commission. Stockbrokers are known by numerous professional designations,
depending on the license they hold, the type of securities they sell, or the services they
provide. In the United States, a stockbroker must pass both the Series 7 and either the Series
63 or the Series 66 exams in order to be properly licensed.

The first stockbroking began in Rome, where the first recorded buying and selling
of shares occurred in the 2nd century BCE. After Rome fell, stockbroking did not become a
realistic career until after the Renaissance, when government bonds traded in Italian city-
states such as Genoa or Venice. New stock exchanges opened their doors in the 16th and
17th centuries, including the London Stock Exchange, which was opened at a coffee shop in
1698.[4] In the 1800s, in the United States, the New York Stock Exchange opened its doors
under a buttonwood tree in New York City. 24 stockbrokers signed the Buttonwood
Agreement, agreeing to trade five securities under that buttonwood tree. [5]

Requisite Expertise
Hong Kong
To become a representative one has to work for a licensed firm and pass 3 exams to prove
one's competency. Passing a fourth exam results in obtaining a 'specialist' license. All tests
can be taken with the HKSI. However, passing all tests doesn't result in automatically
obtaining the license. It still needs to be approved by the financial regulatory body.
India
Stockbrokers typically earn a bachelor's degree in finance or business administration. A
finance degree prepares students to work as stockbrokers by focusing their studies on
financial laws and regulations, accounting methods and investment management. Students
study the principles of economics and currency, financial planning and financial forecasting.
On-the-job training programs are often available to aspiring stockbrokers, which allow them
to gain practical experience and work towards earning the required professional licenses.[9].
United Kingdom
Stockbroking is a regulated profession in the UK and brokers must achieve a recognised
qualification from the Financial Conduct Authority (FCA)'s Appropriate Qualifications list.
A number of qualifications are available and the one a trainee does will depend on their
duties and their employer.
Qualifications include:

 CISI Level 4 Diploma in Investment Advice

 CISI Level 7 Diploma in Wealth Management
 The Chartered Institute for Securities and Investment (CISI) is the largest UK
professional body for those who work in the securities and investment industry. It
evolved from the London Stock Exchange, has around 40,000 members in over 100
countries and delivers more than 37,000 exams each year.
CFA UK also offers qualifications. It represents the interests of around 11,000 investment
professionals and is part of the worldwide network of members of the CFA Institute.
United States
While the term "stockbroker" is still in use, more common terms are "broker", "financial
advisor", "registered rep." or simply "rep." — the latter being abbreviations of the
official (FINRA) designation "Registered Representative," obtained by passing the
FINRA General Securities Representative Exam (also known as the "Series 7 exam") and
being employed ("associated with") a registered broker-dealer, also called a brokerage
firm or (in the case of some larger money center broker/dealers) a "wirehouse", typically a
FINRA member firm.[11] Other FINRA licenses or series exams exist. Individuals holding
some of those licenses, such as the "Series 6", cannot be called stockbrokers since they are
prohibited from selling stock and are not trained or licensed in the full array of capabilities
of a Series 7 stockbroker (see list of securities examinations). Selling variable products (such
as a variable annuity contract or variable universal life insurance policy) typically requires
the broker to also have one or another state insurance department licenses.

Indian Economic Environment- Indian Economy, Economic Policies and

Macroeconomics, Business Cycles, Multiplier Model (Chapter 3)
INDIAN ECONOMY
Economic Policies and Macroeconomics
MACROECONOMIC FACTOR IN INDIA
Business Cycles, Multiplier Model

BUSINESS CYCLES
Multiplier Model
The Multiplier effect refers to the increase in final income arising from
any new injection of spending. The size of the multiplier depends upon
household's marginal decisions to spend, called the marginal
propensity to consume (MPC), or to save, called the marginal
propensity to save (MPS ).
Module III:

Financial Counseling, Basic Communication Principles,

Attending and Listening Skills, Understanding and meeting
client ,marketing of Financial Services,
FINANCIAL COUNSELING

A financial counsellor works for the community agencies in all states and territories,
providing free, independent, and confidential information to assist people in financial
difficulty. They work with their clients to help them get out of the cycle of debt and take
control of their finances.

They can negotiate repayment arrangements with creditors on your behalf, help you apply
for a financial hardship variation on your bills or repayments, explain debt recovery
procedures, and perhaps refer you to other services for further help.

A financial counsellor will:

  Help you get a clear picture of your overall financial situation
 Explain what options you have in relation to your debts and the advantages and
disadvantages of them
 May advocate or negotiate with creditors, government agencies and others
 Listen and provide support

A financial counsellor is on your side and nobody else’s. They have strong links with other
service providers, so they can refer you to other agencies which can give you extra help,
such as community legal services (e.g. Legal Aid), housing bodies (e.g. National Rent
Affordability Scheme), the gambling helpline, family support services, personal counselling,
and more. But they won’t make you go if you don’t need or want to.

Financial counsellors have an extensive knowledge of a range of areas of law and policy,
including the law about credit cards and loans, debt enforcement practices and
repossession, bankruptcy, financial hardship policies, and government concession
frameworks.

Funded largely by either State Governments or the Federal Government, financial

counsellors can help you understand your options so that you can get back on your feet
without incurring even more debt.

BASIC COMMUNICATION PRINCIPLE :

Attending and Listening Skills
UNDERSTANDING AND MEETING CLIENT :
MARKETING OF FINANCIAL SERVICES
Tools for Financial Planning- Planning with Personal Financial
Statements- Time Value for Money, Tax Concepts for Planning (Part I
Personal Finance) Personal Investing, Equity Stocks,, Debts, Bonds,
Mutual Funds,, Asset Allocation (Part 5 of Personal Finance)

TOOLS FOR FINANCIAL PLANNING

Planning with Personal Financial Statements
- TimeValue for Money, Tax Concepts for Planning (Part I
Personal Finance) Personal Investing, Equity Stocks,, Debts,
Bonds, Mutual Funds,, Asset Allocation (Part 5 of Personal
Finance)
Time Value for Money
 tvm_problems_solutions.pdf

Personal Finance :
Tax Concepts for Planning
Retirement and Estate Planning, Drafting of a Will,
Types, Legal Frame Work, Administration of Will,
Execution of a Will

Retirement and Estate Planning

ESTATE PLANNING
Drafting of a Will
SAVED ON DESKTOP

LEGAL FRAME WORK:

Terms:

Presumption:
A rule of law, statutory or judicial, that accepts the validity of a fact until it is rebutted. Once accept
introduce sufficient evidence to disprove the fact’s validity.
Rebuttable (presumption):
An established fact can be overturned upon the showing of sufficient proof. Once evidence tending
of the fact is entirely dissipated and the party with the original burden of proof must come forward
Scrivener:
One whose occupation is to draw up contracts, write deeds and mortgages, and prepare other spec
Subscribe:
To sign at the end of a document.
Attestation:
The act of witnessing an instrument in writing, at the request of the party making the same, and sub
of such fact.
Ex parte:
When a judicial proceeding, order or injunction is applied for by only one party.

There are four main requirements to the formation of a valid will:

The will must have been executed with testamentary intent;

 The testator must have had testamentary capacity:

 The will must have been executed free of fraud, duress, undue influence or
mistake; and
 The will must have been duly executed through a proper ceremony.

Testamentary intent involves the testator having subjectively intended that the
document in question constitute his or her will at the time it was executed.
Ordinarily, the opening recital, e.g., I, Jane Doe, do hereby declare this instrument to
be my Last Will and Testament . . .” will suffice.

Testamentary Capacity
In addition to testamentary intent, the testator must have the testamentary capacity,
at the time the will is executed. Generally, it takes less capacity to make a will than to
do any other legal act. As guidance, a four-prong test is often used. The testator
must:

1. Know the nature of the act (of making a will)

2. Know the “natural objects of his bounty”
3. Know the nature and extent of his property
4. Understand the disposition of the assets called for by the will.

See, e.g., Estate of Bullock, 140 Cal. App. 2d 944 (1956); Pace v. Richmond, 343 S.E.2d 59
(Va. 1986). A common modification to the above list of requirements is that the
testator be of “sound mind” and capable of executing a valid will.
Accompanying the competency standard is a minimum age requirement, which is
usually age 18. See Cal. Prob. Code § 6100; Idaho Code § 15-2-501; Utah Code § 75-2-
501.
EXAMPLE: Robert was 79-years-old when he decided to prepare his will. He had
been under the care of a doctor for dementia and needed 24-hour care. His son,
Rodney, insisted that he prepare a will and called a friend of his, who is an
attorney, to prepare one for his father. In the will, all the property was left to
Rodney, to the exclusion of his other siblings. Given Robert’s mental state, it is
unlikely that he possessed the competency needed to prepare a will. As such, if
this instrument were submitted for probate, the court undoubtedly would reject it.

Signature Requirements
Most courts take a liberal view as to what constitutes a testator’s signature. These
standards range from the testator’s first name, nickname or even an “X” by an
illiterate person. See, e.g., Ferguson v. Ferguson, 47 S.E.2d 346 (Va. 1948).
The key is that the mark must be intended to be the testator’s signature and is made
willingly by the testator. Even if the testator needs assistance in signing his name
due to some infirmity, it still meets the signature requirement, as long as the testator
desired and intended to sign the instrument. See, e.g., In re Will of Bernatowicz, 233
A.D.2d 838 (1996). Additionally, proxy signatures (made by another person) are
acceptable, as long as the signing is at the testator’s direction and in his or her
presence. See Cal.r Prob. Code § 6110(b).
EXAMPLE: Chester decided to prepare his will a few weeks before he was to have
surgery for prostate cancer. Chester’s will leaves all his property to his nephew,
Alan, who was the son of his late favorite sister, Wilma. He purposely wanted to
exclude his brother, Harry, and his family from the will because they never got
along. Chester had some complications from the surgery and ended up in a coma.
While in that state, Harry came to visit and assisted Chester is signing a will that
left everything to Harry. Shortly thereafter, Chester died and Harry tried to
probate this will. In order for the testator’s signature to be valid, it has to be done
as a volitional act by the testator. Although someone can assist the testator in this
task, the signing must still be at the testator’s direction. Here, Chester was in a
coma so he did not voluntarily sign the will. As such, the will is not valid. See,
e.g., In re Sheehan’s Will, 51 A.D.2d 645 (1976).
In most states, there is no requirement that the testator sign at the end of the will
(subscribe his signature). The signature can appear anywhere, provided it was
intended by the testator to be his signature. See, e.g., Potter v. Richardson, 230 S.W.2d
672 (Mo. 1952); In re Estate of Carroll, 548 N.E.2d 650 (Ill. 1989).
EXAMPLE: Tyrone purchased a preprinted will to use as his will. At the
beginning where it says “Last Will and Testament of __________” he signed his
name. He filled in the rest of the form with his bequests and named an executor.
When Tyrone died, the will was considered valid because he had signed
somewhere on the instrument, although it was in the beginning rather than the
end.
In many jurisdictions, the signature must be at the end of the will to be valid. In
these jurisdictions, even deciding where “the end” of the will is can create
uncertainty. Some jurisdictions apply an objective test requiring the testator to sign
at the physical end (or last line) of the document.
EXAMPLE: Proley writes her will by filling in the blanks on a printed form. The
form calls for the testator’s signature at the bottom of the first page. The two
witnesses sign there, but Proley does not. Instead, pursuant to the form’s
instructions, Proley folds the sheet in thirds so that the middle third of the back
side becomes the document’s spine, which says “Will of _________.” Proley signs
on that line. The will is denied probate because it was not signed at the sequential
end. See In re Proley’s Estate, 422 A.2d 136 (Pa. 1980).
In contrast, some jurisdictions say that what constitutes the “end” is a subjective test,
holding that the logical or literary end is the appropriate place for the signature.
Here, the question is whether the testator subjectively thought that he was signing at
the end of the will.
EXAMPLE: Proley writes her will by filling in the blanks on a printed form. The
form calls for the testator’s signature at the bottom of the first page. The two
witnesses sign there, but Proley does not. Instead, pursuant to the form’s
instructions, Proley folds the sheet in thirds so that the middle third of the back
side becomes the document’s spine, which says “Will of _________.” Proley signs
on that line. Under the subjective test, Proley thought she was signing at the end
of the will. As such, the signature is valid and the will can be probated.
Signing anywhere can create confusion as to the effect of provisions that may appear
after the testator’s signature. Historically, if there were material provisions
appearing after the testator’s signature, the entire will was void. See, e.g., In re
Winter’s Will, 302 N.Y. 666 (1951) (later overturned by N.Y. Est. Powers & Trusts
Lawr § 3-2.1(a)(1)(A)).
The modern view is that everything appearing before the signature is given effect;
but the provisions that follow the signature are void (even assuming they existed at
the time the will was made). An exception to this view is if the provisions following
the signature are so material that deleting them would subvert the testator’s
testamentary plan. In such a case, the entire will is void. See N.Y. Est. Powers &
Trust Law § 3-2.1(a)(1)(A). If the provisions were added after the will’s execution,
they are, of course, disregarded in all jurisdictions.

Witnesses—attestation versus self-proving affidavit

In addition to the testator signing the will, it also has to be signed by witnesses. Like
the testator, the witnesses must possess certain minimal qualifications or their
attestations may be legally insufficient to validate the will. Specifically, the witnesses
must be competent—they must be mature enough and of sufficient mental capacity
to understand and appreciate the nature of the act that they are witnessing and
attesting to, so that, if needed, the witnesses could testify in court on these matters.
See, e.g., In re Estate of Edwards, 520 S.2d 1370 (Miss. 1988).
A witness usually is judged incompetent to serve as a witness to the will if the
person is also an interested witness. An interested witness is one who is a beneficiary
under the will. At common law, the will was denied probate in those instances.
Today, most jurisdictions have “purging” statutes that delete the gift to the
interested witness so that the will is not denied probate.
EXAMPLE: Eugene, who is single, executed a will that makes gifts to his sister,
Suzanne, and his neighbor, Bonnie. Bonnie is one of the attesting witnesses. The
purging statute applies to eliminate Bonnie’s gift because she was an attesting
witness to a will that made a beneficial gift to her.
Some states require that the testator sign the will in the presence of the witnesses.
Most states require only an acknowledgement to the witnesses by the testator that
his signature appears on the document. See, e.g., In re Levine’s Will, 2 N.Y.2d 757
(1956).
Most courts are indifferent about whether the attesting witnesses or the testator
signs first. Of primary importance is that the execution ceremony is part of a single,
continuous transaction. See, e.g., Waldrep v. Goodwin, 195 S.E.2d 432 (Ga. 1973).
What constitutes signing in someone’s “presence” also has differing interpretations.
Most jurisdictions define presence as the testator being conscious of where the
witnesses were and what they were doing when they signed.
EXAMPLE: Georgia signs her will while lying in a hospital bed. A vinyl screen
separates her from the doorway where the witnesses are standing, which is 12 feet
away. A nurse takes the will around the screen to the witnesses where they sign.
Since Georgia was conscious of where the witnesses were and of what they were
doing, the witnesses signed in her presence even though they were not in her line
of sight. See, e.g., Nicholsr v. Rowan, 422 S.W. 21 (Tex. 1967).
Other jurisdictions dictate that the presence test is only satisfied if the witnesses are
in the testator’s line of sight when they signed.
EXAMPLE: Tyler signs his will in a hospital bed, and then lies down on his back.
The two witnesses take the will into the hallway, where they sign it. If Tyler could
have seen the witnesses through the doorway had he looked, they signed in his
presence. See, e.g., Newton v. Palmour, 266 S.E.2d 208 (Ga. 1980). Conversely, if
Tyler’s line of sight was interrupted by the wall, the witnesses did not sign in his
presence and probate will be denied.
Generally, there is no “publication” requirement (i.e., there is no requirement that
the witnesses know they are attesting witnesses to a will) in most states. Others
require that the testator publish (i.e., declare) to the attesting witnesses that the
instrument is a will. See, e.g., Cal Prob. Code § 6110; N.Y. Est. Powers & Trust Law §
3-2.1(a)(3). It is not necessary, however, that they know the contents of the will. See,
e.g., Strahl v. Turner, 310 S.W.2d 839 (Mo. 1958).
EXAMPLE: Maggie asks two bank employees to witness her signature on a
document right before she is to leave the country on a business trip. The
employees watched Maggie sign the document; then they added their signature.
The document, however, contained no attestation clause, and the witnesses
testified that they did not know whether they were signing a will, a power of
attorney or some other document. As such, the will was not validly executed. See,
e.g., In re Pulvermacher’s Will, 305 N.Y. 378 (1953).
Another function of the witness is to attest (or bear witness) to the fact that the will
has been duly executed by the testator. Although it is not required, often there is an
attestation clause (i.e., certificate) attached that serves this function. See, e.g., In re
Estate of Bochner, 119 Misc. 2d 937 (1983).
EXAMPLE: A sample attestation clause: “On the above date, John Doe, the
testator, declared to us, the undersigned, that this instrument was his last will, and
he asked us to sign as attesting witnesses to it. He then signed the will in our
presence, we being present at the same time. Each of us signed the will in the
testator’s presence and in the presence of each other, we and each of us believing
that the testator was of sound mind.”
In contrast, self-proved wills (wills admitted to probate on the strength of the recitals
in the affidavit without the necessity for the witnesses to actually come and testify
themselves) require the added step of the testator and witnesses signing a sworn
affidavit, usually on a separate sheet of paper, before a notary public. The affidavit
recites all the elements of due execution and serves as a substitute for live testimony
of the attesting witnesses in open court. On the testator’s death the will may be
admitted to probate without the testimony of any subscribing witnesses. See UPC §
2-504.

Absence of fraud and undue influence

 Fraud is one ground to invalidate a will. Fraud involves:

 False statements of material facts,
 Known to be false by the party making the statements,
 Made with the intention of deceiving the testator,
  Who is actually deceived, and
 That cause the testator to act in reliance on the false statements.

See, e.g., Glazewski v. Coronet Insurance Co., 483 N.E.2d 1263 (Ill. 1985); In re Roblin’s
Estate, 311 P.2d 459 (Or. 1957). Given the element of deceit, courts are loath to allow
the beneficiary to inherit the estate in this instance.
There are different types of fraud. Fraud in the execution involves the testator being
deceived as to the character or contents of the document he is signing. See,
e.g., Mitchell v. Mitchell, 41 S.W.2d 792 (Mo. 1931).
EXAMPLE: Robert was 79 years old when he decided to prepare his will, at the
urging of his nephew, Seth. Despite his age, Robert was mentally capable of
executing his will. In addition, he had raised Seth since the age of 6, after Robert’s
brother and sister-in-law (Seth’s parents) were killed in a fire. Accordingly, he
trusted Seth implicitly and felt comfortable having Seth’s wife, Trina (an attorney)
prepare his will. Unbeknownst to Robert, Seth had changed certain provisions in
the will (omitting the provision that gave his brother, Sandy, $35,000) so that he
would get a larger portion of the estate than Robert had originally intended. Due
to Seth’s fraudulent conduct, Robert’s will could be subject to either partial or full
invalidation if the injured party (i.e., Sandy) presses the issue during probate.
Fraud in the inducement involves the testator making the will or writing a provision
that relies upon a false representation of a material fact made to him by one who
knows it to be false.
EXAMPLE: Recently, Karen decided to prepare her will. She was a very wealthy
woman. She and her late husband, Raul, never had any children; therefore, she
wanted to make bequests to her siblings’ children, if they needed it. Since she had
lost touch with some of them, she consulted her nephew, Rod, to update her on
everyone’s status. He falsely claimed that his cousins were all very well off and
only he was in need of financial support. In reality, one of his cousins, Antoinette,
had just been through a divorce and was struggling to rebuild her life and support
her two kids. Another cousin, Felicia, had just lost her home to foreclosure after
her business failed. Even Rod’s brother, Quentin, was going through hard times.
Based on Rod’s statements, Karen provided for a $250,000 bequest to Rod; her
other nieces and nephews were left out. The balance of her $2,000,000 estate was
left to charity. Due to Rod’s fraudulent conduct, Karen’s will could be subject to
either partial or full invalidation if the injured parties press the issue during
probate.
Undue influence involves substituting another person’s will for that of the testator.
See, e.g., In re Dunson’s Estate, 141 So.2d 601 (Fla. 1962); Rothermel v. Duncan, 369
S.W.2d 917 (Tex. 1963). The factors of undue influence are:

 a susceptible testator;
 another’s opportunity to influence the testator;
 improper influence in fact; and
 the result showing the effect of such influence.
Undue influence is difficult to prove because the evidence must be substantial, going
beyond mere suggestion, innuendo or suspicion. See, e.g., Core v. Core’s
Administrators, 124 S.E. 453 (Va. 1924). Merely having a motive, the opportunity or
even the ability to exert undue influence is not sufficient to prove it actually
happened.
If the elimination of a provision created under undue influence does not defeat the
overall testamentary plan, it can be stricken; the rest of the will is still valid. See,
e.g., Williams v. Crickman, 405 N.E.2d 799 (Ill. 1980). In contrast, if this revision alters
the testator’s wishes for the disposition of his property, the entire will is set aside.
See, e.g., In re Klage’s Estate, 209 N.W.2d 110 (Iowa 1973).
Yet, the existence of a confidential relationship between a testator and a beneficiary
may raise a presumption (often rebuttable) of undue influence, especially if the
beneficiary played an active role in procuring the will and the disposition under the
will is “unnatural.” See, e.g., In re Arnold’s Estate, 16 Cal. 2d 573 (1940).
EXAMPLE: Charlotte and her sister, Claire, contested their mother’s will on the
ground that it was the product of undue influence exerted on their mother,
Carolyn, by Wendy, the will’s sole beneficiary. At the time the will was executed,
Carolyn had been recently widowed, physically sick, unable to walk without help,
dependent on drugs and an abuser of alcohol. During the ten months earlier,
Carolyn had executed two other wills, one leaving her estate in equal parts to
Charlotte and Claire, the other leaving the bulk of her estate to only Charlotte.
Wendy, who had known Carolyn for only two months when the will was
executed, had a confidential relationship with Carolyn as her caretaker. After
learning about Carolyn’s desire to disinherit her two daughters, Wendy urged
Carolyn to prepare a new will and took her to a newly admitted attorney who
knew nothing of Carolyn’s situation, rather than to one of the two lawyers who
had drawn up Carolyn’s previous wills. The court found for the daughters, citing
Wendy’s undue influence over Carolyn. See, e.g., In re Swenson, 617 P.2d 305 (Or.
1980).
In contrast, no presumption of undue influence arises from the confidential
relationship that normally exists between a husband and wife. See, e.g., In re Estate of
Glogovsek, 618 N.E.2d 1231 (Ill. 1993). One party can be more influential on the
other’s decision making without rising to the level of undue influence.
EXAMPLE: In Morse v. Volz, 808 S.W.2d 424 (Mo. 1991), evidence showed that
Inga knew the contents of her husband’s (Marvin’s) will, that the will was drafted
by Inga’s attorney and signed at his office immediately after the wedding
ceremony, that her cousin drove them to the attorney’s office, that although
Marvin had never met Inga’s daughter, his will left half of his estate to her if Inga
predeceased him. Naturally, there was a confidential relationship between Inga
and Marvin. The court concluded the evidence was insufficient to establish undue
influence. Inga’s influence over Marvin did not rise to that level because her
urging and soliciting her husband to make a will in her favor is not enough to
prove undue influence.
Nevertheless, if the influence is done in an improper manner, there could be grounds
to challenge the will. See, e.g., Snell v. Seek, 250 S.W.2d 336 (Mo. 1952). The influence
can be more sinister in situations of remarriage where there are children from the
former marriage.
EXAMPLE: In contrast, In re Estate of Riley, 824 S.W.2d 305 (Tex. 1992), Raymond
and Virginia married after the death of Raymond’s first wife. During the
subsequent months, Virginia isolated Raymond from his children and told him
they were only after his money. Raymond eventually suffered a heart attack and
required major surgery. Although Raymond already had a will that devised his
property to his children, Virginia bought and prepared a fill-in-the-blank will for
Raymond to sign the day before his surgery. Floyd, a witness to the will’s
execution, stated that Raymond wanted to devise his property to his kids, and that
Virginia had told him she had made such bequests in the will. Actually, Virginia
was the sole beneficiary. The day after Raymond’s death Virginia filed the will
and did not notify Raymond’s kids that their father had died. Here, the court
concluded that Virginia had clearly exercised undue influence over Raymond
because the will she procured did not reflect Raymond’s wishes.
As is often the case in legal challenges, courts decide the outcome on a case-by-case
basis, evaluating the facts in each case independently. As such, it is difficult to
predict the outcome of a case brought under one of these theories. The most one can
do is be aware of the adverse possibilities and draft the will, as best as possible,
accordingly.

Absence of mistakes
If a testator somehow signs a document purporting to be his will but it is the wrong
document, most courts will hold that there is no will.
EXAMPLE: Robert was 79 years old and his wife, Audrey was 75 years old when
they decided to prepare their wills. By mistake, during the execution of the wills,
they signed each other’s will. If the mistake is not remedied, neither signed
document will be admissible to probate. See, e.g., In re Pavlinko’s Estate, 394 Pa.
564 (1959).
Generally, if a testator omits some provision in his will it cannot be added
postmortem (after death), because a will cannot be reformed or revised once the
testator has died. [In the next chapter we will review when extrinsic (outside)
evidence is admissible; however, that is used for to clear up ambiguities, not to add
new terms to the will.]
EXAMPLE: Robert was 79-years-old when he decided to prepare his will, at the
urging of his nephew, Seth. Despite his age, Robert was mentally capable of
executing his will. In addition, he had raised Seth (and his brother, Sandy) since
the ages of 6 and 10, respectively, after Robert’s brother and sister-in-law (Seth
and Sandy’s parents) were killed in a fire. Robert intended to leave $40,000 (each)
to Seth and Sandy; however, he did not notice when he executed the will that
Sandy’s provision had been inadvertently omitted. After Robert died, the
omission was discovered; however, it was too late to remedy the oversight. As
such, Sandy was not entitled to the $40,000 bequest because it was not specifically
included in the will.
Conversely, a provision included in a will by mistake may be omitted by the probate
court when the will is admitted to probate, if the mistaken inclusion is separable
from the rest of the will. The deletion of the provision cannot substantially alter the
overall will or the intent of the testator. This type of modification is similar to one
found in contracts that allows a provision that is illegal or conflicting to be
eliminated; however, the contract itself still remains valid.
EXAMPLE: Robert was 79-years-old when he decided to prepare his will, at the
urging of his nephew, Seth. Despite his age, Robert was mentally capable of
executing his will. In addition, he had raised Seth (and his brother, Sandy) since
the ages of 6 and 10, respectively, after Robert’s brother and sister-in-law (Seth
and Sandy’s parents) were killed in a fire. Initially, Robert intended to leave
$40,000 (each) to Seth and Sandy; however, he decided to eliminate Sandy’s
bequest. After Robert died, the inclusion was discovered. The probate court can
delete this provision, in keeping with Robert’s wishes, provided this alteration
does not substantially change other provisions in the will.
There can also be a mistake in the inducement, when a testator is mistaken about a
material fact and makes no provision in the will because of it. Unlike fraud in the
inducement, a mistake in the inducement will not cause the will to be invalid. Such
innocent mistakes will not adversely affect the will’s validity. In effect, no relief is
granted for the injured party. See, e.g., Bowerman v. Burrris, 197 S.W. 490 (Tenn.
1917).
EXAMPLE: Recently Karen decided to prepare her will. She was a very wealthy
woman. She and her late husband, Raul, never had any children; therefore, she
wanted to make bequests to her siblings’ children, if they needed it. Her sister,
Jenna, had two daughters, Antoinette and Felicia. Her other sister, Stephanie, had
two sons, Rod and Quentin.
EXAMPLE: Karen provided for a $250,000 bequest (each) to Felicia, Rod and
Quentin. She had eliminated Antoinette because she still thought Antoinette was
married to a wealthy surgeon. Karen was unaware that Antoinette had just been
through a messy divorce and was struggling to rebuild her life and support her
two kids, since she had lost touch with her. The balance of her $2,000,000 estate
was left to charity. Karen’s mistake about Antoinette’s status does not cause the
will to be invalid. Unfortunately, Karen’s omission cannot be modified.
Although the will may not be invalidated or changed, the intended beneficiaries
might be able to hold the attorney liable for negligent drafting.
EXAMPLE: Trudy and her husband, Ricky, recently drafted their wills. Both
provide that the other will receive the testator’s estate if the other survives by 30
days. The wills also provide that if Trudy and Ricky die in a common disaster,
their estates are to be divided between two nephews, Wade and Chad. Ricky dies
from a stroke and Trudy dies from cancer fifteen days later. Since neither will
contains any other dispositive provisions, both estates pass by intestacy to persons
other than Wade and Chad. Wade and Chad sue the attorney who drafted the
wills. The court held that the attorney was liable to the intended beneficiaries,
Wade and Chad, who were damaged by the negligent drafting of the wills. The
attorney owed a duty to Trudy and Ricky to properly reflect their intention in the
wills, taking into account all foreseeable events. Wade and Chad based their suit
on either tort negligence or in contract as third party beneficiaries. See, e.g., Ogle
v. Fuiten, 466 N.E. 2d 224, (Ill. 1984); Needham v. Hamilton, 459 A.2d 1060 (D.C.
1983).
Ultimately, the testator is responsible for ensuring that the will accurately reflects his
intentions. This is crucial, since once the testator dies; there usually is no way to
rectify any problems with the will. Courts will not step in to rewrite someone’s will.

Special consideration for attorney-draftsman as beneficiary or fiduciary

Attorneys are held to a higher standard when it comes to undue influence claims. A
bequest to an attorney is particularly susceptible to a claim of undue influence
because of the confidential and fiduciary nature of the attorney-client relationship.
Accordingly, many courts presume there was undue influence in instances where
the attorney drafted the will. See, e.g., Carter v. Williams, 431 S.E.2d 297 (Va. 1993).
EXAMPLE: After Mildred’s husband dies, Clarence, her attorney becomes her
lover. This relationship continues for several years until her death. Three years
before her death, Mildred had another attorney (independent) prepare her will.
This will left almost all of Mildred’s property to Clarence. When Mildred died,
her sister, Bea, contested the will on the ground of undue influence. Clarence
countered that Mildred acted on the independent advice and counsel of her
attorney. The court held that the will was invalid. The court cited that this
independent attorney was not diligent enough in probing Mildred about her
family history or her relationship with Clarence, particularly, in not questioning
why she was giving so much of her property to a nonrelative to the exclusion of
blood relatives. As such, the independent attorney was labeled a mere “scrivener”
and in its view the intimate relationship between Mildred and Clarence was such
that the presumption of undue influence was not overcome. See In re Will of
Moses, 227 So.2d 829 (Miss. 1969).
New York takes an even harsher view of undue influence in these circumstances. In
New York, attorneys are required “to explain the circumstances and to show in the
first instance that the gift was freely and willingly made.” See In re Putnam’s Will, 257
N.Y. 140 (1931). This explanation takes place at a hearing, even if the will is not
contested and no objection to the gift is filed.
Another dim view of the practice of writing a will under which you are a beneficiary
comes from Texas. Specifically, the Texas statute voids a testamentary gift to the
attorney who prepared the will, his spouse, or his employee, unless any of these
parties were related to the testator. See Tex. Prob. Code § 58B.
Conversely, if the will was prepared by another attorney, whereby the testator
received independent legal advice, no presumption of undue influence arises. See,
e.g., Frye v. Norton, 135 S.E.2d 603 (W. Va. 1964).
Clearly, these safeguards were put into place to protect the testator from potentially
being unfairly influenced by a trusted adviser.

Safekeeping of wills
A testator’s first inclination may be to keep the will in a safe deposit box, along with
other important papers. This option could cause delay in locating the will because
access to a decedent’s safe deposit box to search for the will requires an ex parte court
order. As an alternative, the will can be deposited in a will safe or vault of the
attorney who drafted it.
Lastly, for a nominal fee, the will can be deposited in the will safe at the surrogate
court. This last option could be inconvenient if the testator decided to change the
will at a later date. In some jurisdictions, process must be served on the beneficiaries
and fiduciaries named in the earlier will if their rights and interests are adversely
affected by the later will.

Administration of Will, Execution of a Will

ADMINISTRATION OF WILL

In common-law jurisdictions, administration of an estate on death arises if the

deceased is legally intestate, meaning they did not leave a will, or some assets are
not disposed of by their will.
Where a person dies leaving a will appointing an executor, and that executor validly
disposes of the property of the deceased within England and Wales, then the estate
will go to probate. However, if no will is left, or the will is invalid or incomplete in
some way, then administrators must be appointed. They perform a similar role to
the executor of a will but, where there are no instructions in a will, the
administrators must distribute the estate of the deceased according to the rules laid
down by statute and the common trust.
Certain property falls outside the estate for administration purposes, the most
common example probably being houses jointly owned that pass by survivorship on
the first death of a couple into the sole name of the survivor. Other examples include
discretionary death benefits from pension funds, accounts with certain financial
institutions subject to a nomination and the proceeds of life insurance policies which
have been written into trust. Trust property will also frequently fall outside the
estate but this will depend on the terms of the trust.

Letter of Administration
Upon the death of a person intestate, or of one who left a will without
appointing executors, or when the executors appointed by the will cannot or will not
act, the Probate Division of the High Court of Justice or the local District Probate
Registry will appoint an administrator who performs similar duties to an executor.
The court does this by granting letters of administration to the person so entitled,
who must hire a lawyer to get this process started] Grants of administration may be
either general (where the deceased has died intestate) or limited The order in which
the court will make general grants of letters follows the sequence:

1. The surviving spouse, or civil partner, as the case may be;

2. The next of kin;
3. The Crown;
4. A creditor;
5. A stranger.
Under the rules for distribution of estates without a will (the Intestacy Rules), where
a child under 18 would inherit or a life interest would arise, the Court or District
Probate Registry would normally appoint a minimum of two administrators. On
some estates, even under an intestate, it is not clear who are the next-of-kin,
and probate research may be required to find the entitled beneficiaries.
An administrator (sometimes known as the administratrix, if female) acts as
the personal representative of the deceased in relation to land and other property in
the UK. Consequently, when the estate under administration consists wholly or
mainly of land, the court will grant administration to the heir to the exclusion of the
next of kin. In the absence of any heir or next of kin, the Crown has the right to
property (other than land) as bona vacantia, and to the land by virtue of the historic
land rights of the Crown (and the Duchy of Cornwall and Duchy of Lancaster in
their respective areas). If a creditor claims and obtains a Grant of Administration, the
court compels him or her to enter into a bond with two sureties that he or she will
not prefer his or her own debt to those of other creditors.[1]

Other types of Letters of Administration[edit]

The more important cases of grants of special letters of administration include the
following:

 Administration cum testamento annexo, where the deceased has left a will but has
appointed no executor to it, or the executor appointed has died or refuses to act.
In this case the court will make the grant to the person, usually the residuary
legatee, with the largest beneficial interest in the estate.
 Administration de bonis non administratis occurs in two cases:

1. Where the executor dies intestate after probate without having completely
administered the estate
2. Where an administrator dies.
In the first case the principle of administration cum testamento is followed, in the
second that of general grants in the selection of the person to whom letters are
granted.

 Administration durante minore aetate, when the executor or the person entitled to
the general grant is under age.
 Administration durante absentia, when the executor or administrator is out of the
jurisdiction for more than a year.
 Administration pendente lite, where there is a dispute as to the person entitled to
probate or a general grant of letters the court appoints an administrator till the
question has been decided.[1]

EXECUTION OF WILL

Executing a will is the technical term for signing a will and making it legal.

To execute a will in any state in the United States, you must 1) sign the document
while you have capacity to know what you’re doing, and 2) have two people sign
the will as witnesses.
No state requires you to have your will notarized, although there is an advantage to
doing so in some states. See “Self-Proving Affidavits,” below.

Having Capacity

When you sign your will you must have legal “capacity” to do so. This is commonly
known as “being of sound mind.” It means that you must understand what property
you own, what your family relationships are, and the effect the document will have
when you die. This is not a high bar to reach. You can be forgetful or slow or
physically unwell and still have the capacity to make a will. However, capacity is
one area that is commonly contested. So if you have concerns about your capacity, or
if you think that someone might challenge whether you had capacity when you
signed your will, see a lawyer for help.

Who Can Be a Witness

In every state, your will must be signed by two adult witnesses. Your witnesses
should not be beneficiaries of your estate – meaning, they should be someone who
will get nothing from your estate when you die. Also, choose witnesses who are
likely to be around when you die, because the probate court may need to contact
them after your death.
Signing the Will

Executing your will won’t take long, but there are a few steps:
Prepare your will. Before you sign your will, read it carefully to make sure that you
understand every word, that there are no typos, and that it reflects your wishes. If
you have any questions, talk to your lawyer. Or if you made your will yourself,
consult the help or instructions that came with your will.
Gather your witnesses. When you’re sure your will is correct, gather your witnesses
together – you should all sign your will at the same time. Not all states require you
to do it this way, but it’s better if you do.
Say “this is my will.” Your witnesses do not need to know or see the contents of
your will, but you do need to declare to them that you intend the document to be
your will.
Initial each page. Put your initials on each page of the document, and then ask your
witnesses to do the same. This makes it impossible for anyone to slip in another page
at a later date.
Sign and date at the end. After the last clause of the document, sign your name and
write the date. And if you name is not typed there, print your name as well. Then
ask your witnesses to sign. They should also print their names and include their
current addresses.
Your will is now executed.
What About My Executor?
Although the roots of the words are similar, an executor has nothing to do
with executingyour will. In your will, you name an executor to take care of your
estate after you die, but your executor does not need to be involved with executing
your will..

Self-Proving Affidavits

Most states allow you to attach a “self-proving affidavit” to your will. A self-proving
affidavit allows your will to be “proven” to the probate court without your
witnesses having to testify. This may cause your executor some trouble when it
comes time to probate your estate. So if possible, it’s a good idea to include a self-
proving affidavit with your will.
The self-proving affidavit itself is a brief statement that says that the will was
property executed. It is signed by you and the witnesses and then notarized by a
notary public.
RELATED ADS
If you decide to use a self-proving affidavit, you and your witnesses must go to the
notary public together. (Or have the notary come to you.) You all must sign at the
same time.
To find a notary public, use the yellow pages or do an online search for notaries in
your area. Also, banks, real estate offices, and mail-box services often have notaries
onsite. Notaries usually charge a modest fee for their services, though they may
charge significantly more if you hire a mobile notary to travel to you.