Bette Robin, DDS, JD 877 DrRobin
SELECT PRACTICE SERVICES, INC. / DENTAL PRACTICE SALES
SELECT PRACTICE SERVICES, INC. / DENTAL PRACTICE SALES
CHANGE YOUR LIFE, CHANGE YOUR ESTATE PLAN
Fortunately most dentists are wise enough to plan for their future using
either a will, trust, pension plan, life insurance policy, or some
combination of all these estate-planning tools. However, some
professionals neglect these important planning tools until it is too late.
Dr. Robertson, in Estate of Robertson, made a will in 1953 that left the
main assets of her estate to her relatives, and the residue of her estate
(those assets which were not specifically devised) to her niece and
nephew. Then, Dr. Robertson made a later will in 1965 which revoked
all prior wills. This new will stated her specific intention to give the gift to
the niece and nephew but not to leave her ‘other relatives’ anything from
her estate. In other words, Dr. Robertson did not dispose of the main
assets of her estate in her new will but did dispose of the residual of her
estate- a very confusing error.
The ‘other relatives’ argued that since the two wills contradicted each
other the estate should pass to them as if there had been no will. The
niece and nephew argued that the prior will should be probated along
with the later will in order that the actual intention of Dr. Robertson be
followed. The court applied the Doctrine of Dependent Relative
Revocation to uphold the bequest of the residue of the estate to pass to
the niece and nephew.
The Doctrine of Dependent Relative Revocation is an interesting legal
concept that can be used to correct the mistake of inaccurate estate
planning. The Doctrine is used when the revocation of an earlier will in a
later instrument is dependent on the validity of the later bequest. The
policy in using this doctrine is that courts prefer assets in an estate to
pass through a will (testacy) as opposed to without a will (intestacy).
When the decedent’s intentions can be determined by reference to a
will, albeit an improperly drafted one, a court is often likely to follow that
intention by reading the two or more documents together to determine
an appropriate bequest.
Many dentists devise an estate plan only once in their lives and forget to
change the plan when their lives change. When practices are sold,
marital status change, residences are changed, it is time to update your
estate plan to be sure it accurately represents your current intentions.
Even those dentists who are wise enough to make changes to such
documents, fails to do so properly so that their current intentions would
be upheld a court of law if necessary. Obviously, the time and money
that had to be spent in the Robertson case ate up a substantial part of
the assets of the estate and undoubtedly caused a lot of hard feelings
between relatives.
Remember, when changes in your life occur, change your estate plan.
Second, have a qualified attorney dealing in estate planning revise your
estate plan. Doing it yourself could mean confusion to the interpreting
body, which may be your heirs, or the probate court, which will cause
your estate and heirs to be tied up in court proceedings until everything
is settled. Furthermore, when your heirs or the court is interpreting your
estate plan or more specifically, your will, there is a greater chance that
your true intentions will be misunderstood. Third, in the rapid pace of a
dentist’s life, it is imperative that the estate plan, including your will,
trust, pension plans, and life insurance policy(s) are updated and
examined yearly or whenever there is a change in the dentist’s life.
Remember, change your life, change your estate plan!
© Bette Robin, DDS, JD 4/98
either a will, trust, pension plan, life insurance policy, or some
combination of all these estate-planning tools. However, some
professionals neglect these important planning tools until it is too late.
Dr. Robertson, in Estate of Robertson, made a will in 1953 that left the
main assets of her estate to her relatives, and the residue of her estate
(those assets which were not specifically devised) to her niece and
nephew. Then, Dr. Robertson made a later will in 1965 which revoked
all prior wills. This new will stated her specific intention to give the gift to
the niece and nephew but not to leave her ‘other relatives’ anything from
her estate. In other words, Dr. Robertson did not dispose of the main
assets of her estate in her new will but did dispose of the residual of her
estate- a very confusing error.
The ‘other relatives’ argued that since the two wills contradicted each
other the estate should pass to them as if there had been no will. The
niece and nephew argued that the prior will should be probated along
with the later will in order that the actual intention of Dr. Robertson be
followed. The court applied the Doctrine of Dependent Relative
Revocation to uphold the bequest of the residue of the estate to pass to
the niece and nephew.
The Doctrine of Dependent Relative Revocation is an interesting legal
concept that can be used to correct the mistake of inaccurate estate
planning. The Doctrine is used when the revocation of an earlier will in a
later instrument is dependent on the validity of the later bequest. The
policy in using this doctrine is that courts prefer assets in an estate to
pass through a will (testacy) as opposed to without a will (intestacy).
When the decedent’s intentions can be determined by reference to a
will, albeit an improperly drafted one, a court is often likely to follow that
intention by reading the two or more documents together to determine
an appropriate bequest.
Many dentists devise an estate plan only once in their lives and forget to
change the plan when their lives change. When practices are sold,
marital status change, residences are changed, it is time to update your
estate plan to be sure it accurately represents your current intentions.
Even those dentists who are wise enough to make changes to such
documents, fails to do so properly so that their current intentions would
be upheld a court of law if necessary. Obviously, the time and money
that had to be spent in the Robertson case ate up a substantial part of
the assets of the estate and undoubtedly caused a lot of hard feelings
between relatives.
Remember, when changes in your life occur, change your estate plan.
Second, have a qualified attorney dealing in estate planning revise your
estate plan. Doing it yourself could mean confusion to the interpreting
body, which may be your heirs, or the probate court, which will cause
your estate and heirs to be tied up in court proceedings until everything
is settled. Furthermore, when your heirs or the court is interpreting your
estate plan or more specifically, your will, there is a greater chance that
your true intentions will be misunderstood. Third, in the rapid pace of a
dentist’s life, it is imperative that the estate plan, including your will,
trust, pension plans, and life insurance policy(s) are updated and
examined yearly or whenever there is a change in the dentist’s life.
Remember, change your life, change your estate plan!
© Bette Robin, DDS, JD 4/98
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DrRobin@BetteRobin.com
17482 Irvine Blvd., Suite E
Tustin, CA 92780
Tustin, CA 92780
877 DrRobin
Tele:
714.421.4407
Fax:
714.398.8808