Written by attorneys · grounded in primary & secondary sources — see below
A revocable donative transfer that passes property at death without probate.
Sources & Authorities
How it applies
Common Examples
2
Beneficiary Designation Upheld
Rosa Ruiz, an elderly investor with early dementia, met with her attorney and accurately listed her brokerage accounts and her two adult children. She then executed a new will and changed the revocable beneficiary designation on a large account to favor her longtime caregiver instead. The children challenged both instruments for lack of capacity. The court upheld the changes because Rosa demonstrated the required understanding of her assets, family, and plan at the time of execution.
Divorce Revokes Designation
Roland Rhodes named his then-wife as beneficiary on a revocable retirement account. After their divorce, Roland died without changing the designation. His estate argued that the divorce revoked the beneficiary form under rules applicable to wills. The court applied the revocation-by-divorce doctrine to the account because the form was a revocable will substitute.
Put it into practice
Test Yourself
9
Practice Questions5
· 4 sources
Select any source to read its text and confirm it supports the definition.
Restatements
Study Supplements
Common questions
Frequently Asked
4
What mental capacity standard governs creation of a revocable will substitute?+
The donor must be capable of knowing and understanding in a general way the nature and extent of the property, the natural objects of bounty, and the disposition being made. The donor must also relate those elements and form an orderly desire. This is the same standard that applies to wills.
Supporting sources
Does a dementia diagnosis automatically invalidate a revocable will substitute?+
No. The legal test focuses on the donor's abilities at the moment of execution rather than on any medical label. Many individuals with early dementia retain sufficient capacity when they can identify their property, family, and plan in an orderly way.
Supporting sources
Do rules on revocation by divorce apply to revocable will substitutes?+
Yes. The principles governing revocation of wills upon dissolution of marriage extend fully to revocable will substitutes such as beneficiary designations and revocable trusts.
Supporting sources
Is the capacity standard for revocable will substitutes lower than for irrevocable gifts?+
Yes. Revocable instruments require only the testamentary capacity standard. Irrevocable gifts demand that additional understanding of the effect on the donor's future financial security and on dependents.
Supporting sources
Trusts and Estates Trusts and Future InterestsTrusts · CreationUBEFoundational