Also known as: governing instruments · governing document
Written by attorneys · grounded in primary & secondary sources — see below
A document directing the disposition of property upon a person's death or other triggering event. It encompasses wills, trust agreements, insurance policies with beneficiary designations, deeds, and similar instruments that control the transfer of assets.
Gerald Gibson executed a will leaving his estate to his heirs at law. After his death, a dispute arose over whether the language created a reversion in his estate. The court applied the governing instrument without recognizing any reversionary interest under the abolished doctrine.
Gabriella Gomez created a trust directing the trustee to balance income and growth for beneficiaries. The trustee sought to invest for total return. The governing instrument controlled the investment strategy without rigid income restrictions.
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Galaxy Technologies maintained a charter as its governing instrument that included a discriminatory policy. The IRS challenged its tax exemption. The provision in the governing instrument triggered denial of exempt status.
A governing instrument includes wills, trusts, insurance policies, beneficiary designations, and deeds that direct property disposition. The term covers will substitutes and is defined to include instruments executed by a decedent.
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Provisions in a governing instrument relating to survival of an event are subject to the 120-hour requirement unless the instrument expressly addresses simultaneous deaths. Absent clear and convincing evidence of survival, the individual is deemed to have predeceased the event.
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Divorce revokes dispositions to a former spouse or the former spouse's relatives in a governing instrument unless the instrument expressly provides otherwise. The revocation treats the former spouse as having predeceased the decedent for those provisions.
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The meaning and legal effect of a governing instrument are determined by the law of the state selected in the instrument itself unless that law conflicts with public policy or elective share rules.
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…from taxation under subsection (a) for any taxable year if, at any time during such taxable year, the charter, bylaws, or other governing instrument, of such organization or any written policy statement of such organization contains a provision which provides for discrimination against any person on the basis of race, color, or…