Deck 52: Wills Trusts and Estates

Question 1

Nicknames or titles cannot be used as a testator's signature in a will.

Answer 1

False

Question 2

According to the Uniform Simultaneous Death Act,the deceased's property goes to the government in case of simultaneous deaths.

Answer 2

False

Question 3

A will is a testamentary deposition of property.

Answer 3

True

Question 4

If two or more testators execute the same instrument as their will,the document is called a reciprocal will.

Question 5

A living will states a person's wishes regarding estate planning.

Question 6

A beneficiary under the will cannot be the witness of that will.

Question 7

A probate can only be conducted by a lineal descendant of the testator.

Question 8

Nuncupative wills are legal oral wills that are made at a testator's deathbed in the absence of witnesses.

Question 9

A will has to be composed on legal paper to be considered valid.

Question 10

A mutual will cannot be unilaterally revoked after one of the parties has died.

Question 11

Pursuant to per capita distribution,all the lineal descendants equally share the property of the estate.

Question 12

A will can be created to come into effect during one's lifetime.

Question 13

A person who inherits property under a will or an intestacy statute takes the property subject to all the outstanding claims against it.

Question 14

A health care directive names an individual or individuals who can make health care decisions if the maker of the directive is unable to do so.

Question 15

A properly executed subsequent will revokes a prior will.

Question 16

A codicil is considered to be a separate instrument from the will it references.

Question 17

Trusts are used to transfer property that is to be held and managed for the benefit of another person or persons.

Question 18

The Statute of Wills permits all orally made wills to be legally binding.

Question 19

A will cannot be amended by merely striking out existing provisions and adding new ones.

Question 20

A gift of $100,000 to a named beneficiary is an example of a general gift.

Question 21

A living trust is subject to property division upon divorce.

Question 22

In case of abatement,if a will provides for both general and residuary gifts,the residuary gifts are abated first.

Question 23

Who is a beneficiary of a will?

A)a person assigned in a will to create a trust
B)a person allowed to transfer the testator's legal title property to another person
C)a person designated in the will to receive the testator's property
D)a person nominated in a living will to make all health care decisions in accordance with the testator's wishes

Question 24

In an inter vivos trust,the settlor transfers legal title of property to a named trustee to hold,administer,and manage for the benefit of named beneficiaries while he or she is alive.

Question 25

A Totten trust is considered a tentative trust because the trustee can add or withdraw funds from the account.

Question 26

In a spendthrift trust,all control over the trust is removed from the beneficiary.

Question 27

According to the doctrine of ademption,the lineal descendants inherit by representation of their parent.

Question 28

A living trust does not allow creditors to obtain a lien against the property in the trust.

Question 29

A testamentary trust comes into existence while the settlor is still alive.

Question 30

Euthanasia pursuant to a living will is considered legal.

Question 31

A(n)________ is a declaration of how a person wants his or her property to be distributed upon death.

A)will
B)tort
C)audit
D)writ

Question 32

In a trust arrangement,the trustee has legal title to the trust corpus,and the beneficiary has equitable title.

Question 33

Relatives who receive property under intestacy statutes are called beneficiaries.

Question 34

All trusts are deemed irrevocable on creation.

Question 35

Which of the following statements is true of the requirements of making a will?

A)A will need not be signed by the testator if it was created in the presence of witnesses.
B)A will need not be written to be considered valid only if it is a dying declaration.
C)A will cannot incorporate any other documents by reference.
D)The legal age for executing a will is set at 25 years across all states.

Question 36

If the deceased has no surviving relatives,then the deceased's property escheats to the state.

Question 37

A living trust is a document that states which life-saving measures the signor does and does not want.

Question 38

The primary purpose of using a living trust is to avoid probate associated with using a will.

Question 39

The person or entity to receive the trust corpus upon the termination of the trust is called the remainder beneficiary.

Question 40

In an allegation of undue influence in making a will,the courts only consider direct evidence as proof.

Question 41

Which of the following wills is an exception to the writing rule of the Statute of Wills?

A)a reciprocal will
B)a holographic will
C)a nuncupative will
D)a codicil

Question 42

A codicil must be ________.

A)executed before the will has been created
B)read as a separate instrument from the will
C)inclusive of a reference to the will it is amending
D)amended in the presence of the same witnesses who signed the will

Question 43

Bob and Clara were married for 22 years when they died in a car accident,without leaving behind a will.They had no surviving children but they were close to many of their living relatives.According to the Uniform Simultaneous Death Act,how would the couple's properties be distributed following their death?

A)It would be made into a charitable fund by a court-appointed trustee.
B)It would escheat to the government.
C)It would be distributed to their respective relatives.
D)It would be sold by the government and its proceedings would then go to their relatives.

Question 44

Who is an executor of a probate?

A)a person appointed by the government to conduct the probate
B)a person designated in the will to conduct the probate
C)a person who is beneficiary of the probate
D)an attorney who is usually appointed to help administer the estate and to complete the probate

Question 45

A ________ is a will in which two or more testators execute separate wills that leave their property to each other on the condition that the survivor leave the remaining property on his or her death as agreed by the testators.

A)nuncupative will
B)mutual will
C)joint will
D)living will

Question 46

What is the first step in videotaping the signing of a will?

A)The will is recited verbatim by the testator.
B)The will is attested by the witnesses after inspection.
C)The will is signed by the testator.
D)The will and its provisions are explained and justified by the testator for the benefit of surviving relatives.

Question 47

An oral will that is made before a witness during the testator's last illness is defined as a ________.

A)holographic will
B)nuncupative will
C)living will
D)joint will

Question 48

What is a codicil?

A)a type of will that cannot be amended once created
B)a separate document that must be executed to amend a will
C)a will that has been attested by the beneficiary of the will
D)a duplicate of a will that is used in case the original is destroyed

Question 49

The action of a will being witnessed by two or three objective and competent people is known as ________.

A)attestation
B)abatement
C)escheating
D)ademption

Question 50

What is a holographic will?

A)a will that is revoked on behalf of a testator by a legal attorney
B)a will that requires the beneficiary to be the witness of the will
C)a will that is entirely handwritten and signed by the testator
D)a will that is orally declared at a testator's deathbed

Question 51

Which of the following statements is true of a testator's signature on a will?

A)The testator's signature must be obtained in the presence of the sole beneficiary as the principal witness.
B)The will need not be signed by the testator if it was already attested by witnesses.
C)The use of nicknames and honorary titles to sign a will render it unenforceable and invalid.
D)The testator's signature must appear at the end of the will to prevent chances of any fraud.

Question 52

A gift of real estate by will is called a(n)________.

A)bequest
B)devise
C)abatement
D)general gift

Question 53

The ________ is an act in the United States that provides that if people who would inherit property from each other die such that it cannot be determined who died first,each person's property is distributed as though he or she had survived.

A)Succession Act of 1995
B)Family Law Act of 1986
C)Uniform Determination of Death Act
D)Uniform Simultaneous Death Act

Question 54

A gift of $30,000 to a named beneficiary is an example of a ________ gift.

A)special
B)general
C)legacy
D)residuary

Question 55

What is the attestation clause for wills?

A)the condition that the witness must reside in the jurisdiction in which the testator is domiciled
B)the stipulation that only the testator's attorney can be a witness to the will
C)the requirement of signatures of witnesses on a will after that of the testator's
D)the requirement of the beneficiary's presence when making the will

Question 56

A will that is executed by two or more testators is known as a ________.

A)joint will
B)mutual will
C)reciprocal will
D)nuncupative will

Question 57

The process of a deceased's property being collected,debts and taxes being paid,and the remainder of the estate being distributed is known as a(n)________.

A)probate
B)abatement
C)ademption
D)audit

Question 58

A ________ is a specialized state court that supervises the administration and settlement of estates.

A)small claims court
B)federal court
C)tort court
D)probate court

Question 59

Which of the following statements is true of real property inherited under a will?

A)The person is not allowed to renounce the will after the death of the testator.
B)The person can only renounce the will before a probate is conducted.
C)The person is not allowed to renounce the will if all outstanding claims against it are not fulfilled by him or her.
D)All outstanding claims against the property like liens and mortgages are inherited by the beneficiary.

Question 60

Which of the following statements is true of reciprocal wills?

A)They can be held invalid as to one testator but not the other.
B)They are to be executed as one will with mutual terms.
C)Any will that is executed by two or more testators is a reciprocal will.
D)They cannot be unilaterally revoked after one of the parties has died.

Question 61

Mr.Rolleck writes a will placing his estate in a trust upon his death.He names a local bank as trustee to administer the trust and invest its assets.The trust provides that when his grandson reaches the age of 23,the trust will terminate and he will be given legal title to the assets.Mr.Rolleck dies when the grandson is 12 years old.At the age of 23,the grandson inherits the title to the assets.What kind of trust did Mr.Rolleck create in this scenario?

A)an inter vivos trust
B)a testamentary trust
C)a constructive trust
D)a resulting trust

Question 62

Which of the following is a benefit of a living trust?

A)It helps reduce estate taxes more than a will does.
B)It helps avoid probate on the property.
C)It is not subject to property division upon divorce.
D)It does not allow creditors to obtain liens against the property.

Question 63

Reductions under the doctrine of abatement are proportionate for all beneficiaries ________.

A)when there are residuary gifts and special gifts
B)when there are residuary and general gifts
C)when there are only general gifts
D)when there are only residuary gifts

Question 64

________ is a principle that says if a testator leaves a specific devise of property to a beneficiary,but the property is no longer in the estate when the testator dies,the beneficiary receives nothing.

A)Ademption
B)Abatement
C)Bailment
D)Attestation

Question 65

Which of the following is a similarity between a living trust and an inter vivos trust?

A)both of them are subject to a probate
B)both require the beneficiaries to be present during the time of creation of the trust
C)both of them are created while the settlor is still alive
D)both of them are free from changes resulting from operations of law like annulment

Question 66

From which of the following parties can a creditor recover in a spendthrift trust?

A)reminder beneficiary
B)income beneficiary
C)trustee
D)successor trustee

Question 67

A ________ is created when a person deposits money in a bank account in his or her own name and holds it as a trustee for the benefit of another person.

A)resulting trust
B)Totten trust
C)spendthrift trust
D)testamentary trust

Question 68

Which of the following beneficiaries is considered a lineal descendant of the testator?

A)a parent
B)a child
C)a spouse
D)a sibling

Question 69

The ________ doctrine says that if the property a testator leaves is insufficient to satisfy all the beneficiaries named in a will and there are both general and residuary bequests,the residuary bequest is paid last.

A)ademption
B)inter vivos
C)abatement
D)probatement

Question 70

A distribution of an estate in which grandchildren and great-grandchildren of the deceased inherit by representation of their parent is known as a(n)________.

A)abatement
B)per stirpes distribution
C)per capita distribution
D)ademption

Question 71

Who receives the trust res upon the termination of a trust?

A)the heir
B)the trustor
C)the remainder beneficiary
D)the income beneficiary

Question 72

When is the deceased's property,in intestacy,necessarily escheated to the government?

A)when the deceased has no living relatives
B)when the deceased left behind property that has an existing mortgage on it
C)when the deceased has executed a living will prior to illness or death
D)when the deceased has no lineal descendants

Question 73

A(n)________ is a legal arrangement established when one person transfers title to property to another person to be held and used for the benefit of a third person.

A)will
B)trust
C)escheatment
D)abatement

Question 74

An equitable trust that is implied by law to avoid fraud,unjust enrichment,and injustice is defined as a ________.

A)constructive trust
B)testamentary trust
C)spendthrift trust
D)Totten trust

Question 75

A(n)________ is a distribution of an estate in which each grandchild and greatgrandchild of the deceased inherits equally with the children of the deceased.

A)abatement
B)per stirpes distribution
C)per capita distribution
D)ademption

Question 76

The state of having died without leaving a will is known as ________.

A)ademption
B)intestate
C)abatement
D)escheatment

Question 77

Mr.Rolleck places his estate in a trust while he is alive and he names a local bank as the trustee to administer the trust and invest its assets.The trust designates his wife as the income beneficiary of his estate and stipulates that after his wife's death,their children James and Joyce will receive the trust.James and Joyce are ________ in this scenario.

A)collateral heirs
B)income beneficiaries
C)remainder beneficiaries
D)settlors

Question 78

The receiver of property under intestacy statutes is known as a(n)________.

A)assignee
B)trustee
C)beneficiary
D)heir

Question 79

Helga wants to buy a painting that is to be sold at an auction next week,but she has an unforeseen engagement which requires her to go out of town on the day of the auction.She asks her sister Karina to attend the auction and bid for the painting.If the sale is successful,Karina is to claim legal title to the painting till Helga returns.What kind of a trust is created between Helga and Karina?

A)a charitable trust
B)a testamentary trust
C)a totten trust
D)a resulting trust

Question 80

What is a trust corpus?

A)property and asset that are claimed in case of intestacy
B)property and assets that the trustee has an equitable right to
C)property and assets escheated to the government in the absence of a trustee
D)properties and assets held in trust to be used for the benefit of a third person