next time, tell people in instructions NOT to discuss intestacy--every year some people do this (or discuss standing to sue)ESSAY QUESTION (one hour)

          Ted grew up in Iowa and married his high school sweetheart, Sandy.  For many years after his marriage, Ted was an insurance agent in Iowa.  In 1980, Ted and Sandy moved to California.  Ted had saved some money from his insurance job and when he arrived in California he placed it in a bank account (which he called the Iowa account).  At the time of Ted's death it contained $100,000.  The account was in Ted's name and all the money was earned by Ted while he and Sandy were married and living in Iowa.  Ted also owned a fishing cabin on Lake Okoboji in Iowa worth $60,000.  He still owned the cabin at his death. Iowa is a separate property state and the above assets were all Ted's separate property under Iowa law.

          In California Ted was a real estate agent and Sandy was a homemaker who earned no money.  Ted saved around $200,000 from his earnings as a real estate agent and placed it in a bank account, which he called the retirement account.  It was in Ted's name only.  Even though Ted sold real estate, they lived in a small rental home in Venice.

          In the year 2000 Ted saw some Hare Krishnas on the Third Street Promenade in Santa Monica.  He decided his life had been meaningless and joined the Hare Krishnas, making no more money and living communally with other members of the group.  He did not divorce Sandy, however, nor were they legally separated.  Sandy got a job as a waitress and made just enough money to survive.

          Increasingly aware of the transience of life, Ted went to his local stationery store in 2001 and bought a commercial will form.  He filled it in as follows (italics indicate his handwriting; the rest is printed):

LAST WILL AND TESTAMENT

 I  Ted Smith  DECLARE THAT THIS IS MY WILL.  I REVOKE ANY WILL HERETOFORE BY ME MADE.

 I DISPOSE OF MY ESTATE AS FOLLOWS:

I GIVE, DEVISE, AND BEQUEATH:  _______________________.

I GIVE, DEVISE, AND BEQUEATH: _______________________.

I GIVE, DEVISE, AND BEQUEATH THE REST, RESIDUE, AND REMAINDER OF MY ESTATE TO the International Society of Hare Krishnas.

SIGNED THIS 23rd DAY OF June IN THE YEAR 2001.

                                                Ted Smith

This form was found in Ted's safe deposit box at his bank after he died.

          Although Ted and Sandy had no children, Ted was devoted to his niece, Sara, and kept in touch with her even after becoming a Hare Krishna follower.  He sent her a letter, dated July 3, 2001, telling her about his new life.  At the bottom was his signature, “Uncle Ted,” and then the following:  “P.S.  I want you to have my gold watch when I die.  I inherited it from your grandmother.”

          In 2008, Ted had a heart attack and died instantly.  The Hare Krishnas offer the printed will form for probate.  Sara offers the letter for probate.  And Sandy claims she is entitled to part of the estate as Ted's wife.

          Please answer the following questions:

1.       Assuming Ted's assets consist of the Iowa account, the retirement account, the cabin, and the watch, which assets (and how much of each of those assets) can he give away by will?  [about 25%]

2.       Is the printed form a valid will? [50-60%]

3.       Will Sara get the watch? [15-25%]

If you decide that some or all of Ted's assets pass by intestacy, just say so.  Do not try to determine who gets what under the laws of intestate succession.