Today we studied how a trust is structured and the benefits of a trust over a will . I addressed the role of the trustee in a revocable trust and compared the ease of administration compared to a will. We then addressed other short term non judicial solutions to property disposition such as joint ownership or POD accounts. Last, we discussed estate taxes and the Family Trust Company used for estates usually in excess of 10 million dollars.
During our first segment, we reviewed Kaitlin's test on landlord -tenant law. She did very well but we examined the substantive areas where she needed clarification regarding the tenant's right to sublease or assign . Further, we discussed her analysis of the bailment question.We then began our next chapter on trusts and estates. I began by generally outlining the most common methods of post death property disposition - testamentary wills and trusts. I also provided the definition of will and decedent.
Kaitlin analyzed two landlord/tenant hypotheticals in class today-the first raising the issue of constructive eviction and the second addressing the landlord's liability for injuries sustained in the leased unit. On the board, I reviewed critical terms: covenant/term/ eviction /constructive eviction . We then studied the notice requirement for constructive eviction. Regarding liability for a sexual assault within a unit ,Kaitlin interestingly raised how the tenant's claim for negligence could be tempered by a defense of contributory negligence . We discussed what degree of knowledge would create foreseeability on the landlord's part and contributory negligence on the tenant's part.
We first studied termination of leases due to time expiration or constructive eviction followed by an examination of a Landlord's tort liability for damages both within the leased unit and injuries sustained in common areas such as stairways and parking lots. Kaitlin then analyzed fact patterns addressing a landlord's right to retain installed fixtures, and types of business conduct that may violate a lease provision that restricts the use of a leased premises to only residential use. We examined the issue of materiality in this context. .
We continued studying an actual residential lease noting the practical application of the warranty of habitability , default /eviction, constructive eviction , and the right to assign. Regarding eviction we discussed the role of lease terms and materiality in the context of permitted uses. We further studied the use and forfeiture of security deposits. Next, we examined the impact of subordination clauses Last, we explored the "prevailing party" language addressing the right to attorneys' fees in the event of litigation.
We studied the covenants of quiet enjoyment and habitability as well as the tenant's right of constructive eviction in the event the covenant of habitability is breached. We further discussed lease provisions that prohibit assignment and sublease as well as the landlord's right to unreasonably withhold consent to a tenant's request to assign the lease. Next, we reviewed Kaitlin's homework identifying legal terms .Again ,she did very well with this exercise. Last, I distributed a long form lease .After reading the lease terms, we located within the lease the conditions and covenants we have been studying.
For our first session on this unit we addressed why a leasehold interest is considered an interest in real property . We reviewed other interests in real property that are not fee simple such as a life estate or easement. We then studied the terms covenants and conditions and the various types of leasehold interests. We further discussed evictions and leasehold interests as surviving a sale of the leased property. Last, I defined the leasehold covenants of quiet enjoyment and of habitability and discussed their function.
We reviewed Kaitlin's work analyzing three bailment situations: constructive bailment, no bailment, and mutual benefit bailment. As she had some challenges with the hypotheticals ,I provided additional instruction and analytical models to assist her : Is there a bailment; if so what kind; and what is the standard of care. We noted how even in a situation where no bailment exists, negligence claims may still arise. Together we worked on revising Kaitlin's answers to incorporate class instruction.
