Legal Analysis Assignment

Legal Analysis Assignment

Q4. Kerry was recently diagnosed with an inoperable brain tumor. While the tumor has not caused any noticeable mental problems yet, Kerry's brain function is expected- to deteriorate substantially over the next three years, resulting in significant medical expenditures. Kerri's sister Ann was diagnosed with the same illness 2 years ago. Kerry's only other surviving relative includes her three brothers, two nieces, and one nephew. Although Kerry's brother invited her to live with him, Kerry sold her home in Oklahoma last month and moved to an assisted living facility in South Texas that specializes in caring for patients with brain tumors. Kerry's gross estate is currently valued at $8,000,000, including $2,000,000 in personal property, $2,000,000 in a retirement account, and $4,000,000 in a closely held family business. The only estate planning document Kerry currently has is a valid will that was executed a year ago. Kerry reviewed the will after her diagnosis and is confident that all of her wishes have been properly documented. Which of the following statements is correct?

Since Kerry has a valid will, there is no need for her financial planner to review or update her will.

If Kerry were to decide to make changes to her will utilizing a codicil, she would still have to be considered competent to execute such a document for it to be considered valid.

Kerry should begin a gifting program of $14,000 per year per person to her surviving relatives.

Kerry should execute a general power of attorney and a durable power of attorney for health care with Ann as her appointed agent.

The law dictates that as long as the patient is mentally competent, the concerned person is within the right to update, modify or completely revoke the will and testaments at any time. The key to making alterations to the will is dependent on using channels that are legally valid. Following are the two means through which such actions can be taken on a set will or testament. These are:

To make small modifications in the will, Kerry has to sign a Codicil that has to be validated under applicable state laws, and;

To incorporate bigger changes in the will, it is best to reconstruct a completely new will and testament. This has to be done under applicable state laws as well.

Reviewing Kerry's specific circumstances and the arguments presented above. Two essential details can be deduced. Firstly, Kerry is still mentally competent. Although she is diagnosed with a life threatening brain tumor, the disease is hereditary, as her sister Ann is also diagnosed with the same illness two years ago. Further, brain tumors do not compromise the mental competency of an individual. In Kerry's case this holds true as well. Secondly, the question states in the last lines that Kerry recently reviewed her will and was happy with what was in it. This statement directly asserts that the will is up to the mark and does not have to make further changes. Though, one question is still ...