Deck 15: Wills, Trusts, and Probate

Question 1

A durable power of attorney authorizes one person to handle the estate of another upon the death of the latter.​

Answer 1

False

Question 2

Assisted suicide includes the acts of aiding and abetting another to commit suicide.​

Answer 2

True

Question 3

Joint tenancy is a form of joint property ownership allowing parties to avoid all taxes on such owned property.

Answer 3

False

Question 4

Statutory wills were devised to provide for complex and unusual circumstances of persons who may otherwise die intestate.

Question 5

The person who creates a testamentary trust may not serve as the trustee of the trust.​

Question 6

Very few adults are able to qualify to act as an executor.​

Question 7

In 1900, there was no federal income tax or federal estate and gift tax.​

Question 8

An inter-vivos trust may be made revocable, or revocable after a specified time, or irrevocable - each with different objectives and potentially different tax consequences.

Question 9

One element of an estate plan is to consider whether life insurance is appropriate for the needs of beneficiaries. ​

Question 10

State laws, which regulate how property shall be distributed when a resident of the state dies without leaving a will, are called trust laws.​

Question 11

The person who creates an inter-vivo trust may not serve as the trustee of the trust.

Question 12

A spendthrift trust is one that gives directions to the trustee to spend all money on the beneficiary as fast as possible.​

Question 13

A fidelity bond insures against losses caused by the dishonest performance of duties by a personal representative. ​

Question 14

Estate plans ideally should be customized to fit the unique circumstances and situation of the individual or family for whom the plan is prepared. ​

Question 15

A serious objection to making a last will is its finality and irrevocability. ​

Question 16

Trustees normally collect money for their services through brokerage fees earned from investment in securities for the trust.​

Question 17

Estate planning is an ongoing analysis of what a person owns or expects to own (assets), and what he or she owes to others (liabilities). ​

Question 18

Estate planning has substantial potential monetary and psychological value for an elderly retired person, but not for a young bachelor or young married couple. ​

Question 19

A holographic, un-witnessed will is often as legally effective as a formal, witnessed will.

Question 20

A trust may be used to protect a spendthrift child against his or her own folly and against possible exploitation by others.​

Question 21

Legal duties of an executor include all of the following except​

A)extending sympathy and comforting the bereaved initially and throughout the traumatic experience of probate.
B)notifying heirs and designated beneficiaries of the death and of the contents of the will.
C)paying debts of the decedent and of the estate, and receiving and safekeeping any income of the estate.
D)preparing a final accounting report of the administration of the estate for court review and approval before discharge.

Question 22

Usual costs of a testamentary trust include​

A)will preparation fees.
B)future trustee's fees.
C)future probate fees.
D)all of the above

Question 23

When an elderly person is senile and/or physically unable to handle his/her own finances and other affairs, a close relative, such as a son or daughter, may petition a court to​

A)create an inter-vivos trust with the elderly person as beneficiary.
B)declare a conservatorship with the elderly person as conservatee.
C)declare the elderly person legally insane, and then creates a living will
D)make an assignment of all assets to the closest relatives in exchange for their agreement to care for the elderly person until death.

Question 24

A holographic will​

A)does not require witnesses.
B)can be created in all states.
C)must be signed on all pages.
D)all of the above

Question 25

A will is often called a conditional document because although valid at creation it does not become operational until the death of the testator.

Question 26

The typical joint marital trust​

A)will eliminate or reduce estate or inheritance taxes.
B)will eliminate or reduce probate fees.
C)violates the rule against perpetuities.
D)is also called a nuncupative trust.

Question 27

The book discussed a famous Mexican case where a holographic will was created by an eccentric woman putting her will on an engraved piñata.​

Question 28

Probate has some advantages over procedures that avoid probate. Which of the following is an advantage of probate?​

A)Probate provides an effective method of settling outstanding claims against the deceased person's estate
B)Probate is generally the fastest and cheapest way to transfer property to heirs.
C)Probate allows an effective means of allowing the decedent's wishes for burial and donation of internal organs.
D)Probate is an effective way to reduce fees and taxes.

Question 29

If a child is not specifically provided for in a will either by gift or expressed exclusion it is called an ademption.​

Question 30

Among the advantages of writing a will is​

A)all death taxes may be avoided without sacrifice to customary beneficiaries.
B)property may be distributed in accordance with the wishes of the testator.
C)the services of a personal representative may be dispensed with, and his or her fee saved.
D)probate may be avoided.

Question 31

Joint tenancy as a form of joint property ownership is used to avoid probate but it is not effective to avoid estate taxes.​

Question 32

A will can be used to convey documents owned by the testator as a form of personal property but not documents filed with a court which become public property.​

Question 33

A living will is sometimes called a(n)

A)directive to physicians.
B)A and B trust.
C)trust .
D)durable power of attorney.

Question 34

The person who creates a trust is called a(n)

A)beneficiary.
B)settlor or trustor.
C)trustee.
D)executor or administrator.

Question 35

Mary Banks died without leaving a will. Surviving her were her parents Carl and Sheila, her husband Willie, and her minor children, Tabatha and Kaillie. Regarding the distribution of her estate,​

A)any property she owned, separate from her husband, will be forfeited to the state in which she lived at the time of her death.
B)because she did not leave a will, property that would otherwise go to her husband goes to her children if her state has a pretermitted heir statute.
C)her property will be distributed according to the law of intestate succession in her state.
D)because she did not leave a will, her estate is spared probate costs.

Question 36

Most modest estates are exempt from any estate or death tax but once an estate qualifies for taxation the rate is high (i.e., 45% or above).

Question 37

An effective estate plan should include​

A)a formal statement of the planner's philosophy of life
B)a list of the planner's favorite books, plays, and restaurants
C)a will and a letter of last instructions
D)an outline of the planner's unrealized, but potentially still attainable, lifetime goals

Question 38

To celebrate their 25th wedding anniversary, Juan and Maria Fuentes created a trust transferring more than $250,000 worth of real property to Capitol Trust Company for the benefit of the River City University scholarship program. They did not retain any right to a return of the property. They created a(n)

A)irrevocable testamentary trust.
B)revocable living trust.
C)marital life estate trust.
D)irrevocable inter-vivos trust.

Question 39

If you create a will,​

A)probate is avoided.
B)the will is irrevocable once created.
C)the will reduces or eliminates estate taxes.
D)none of the above

Question 40

Estate planning is the name given the process of proving the validity of a will in court, coupled with the related matter of administering the decedent's estate.​

Question 41

A trust designed for the benefit of a segment of the public or of the public in general is a(n)

Question 42

Which of the following is not necessary to create an express trust?​

A)valid trust purpose.
B)trust property.
C)beneficiary
D)successor trustee.

Question 43

A durable power of attorney​

A)is another term for a living will.
B)empowers another to make significant health care decisions on behalf of the creator of the document under specified circumstances.
C)must be drafted and executed with the assistance of an attorney.
D)all of the above

Question 44

Twenty-nine year old Kitty McBills lapsed into a permanent coma after a skiing accident. She existed for several years in a "vegetative state" after her accident. Assuming she would not have wished to continue to live in this condition, what legal document could she have prepared before the accident to give guidance for her care?​

A)an advanced medical directive
B)a holographic will
C)a living trust
D)a conservatorship

Question 45

The historical word for a mercy killing is​

Question 46

In the textbook Case of Estate of Southworth v North Shore Animal League​

A)The North Shore Animal League sought a court order for an early distribution of trust assets.
B)The court found the gift to the North Shore Animal league did not violate the rule against perpetuities and was thus valid.
C)The court found against the North Shore Animal League's contention that a holographic will existed.
D)The court found the gift to Ms. Southworth's pet Doberman was valid.

Question 47

If you create a will,​

A)an executor can be named.
B)the will reduces income taxes.
C)the will eliminates potential conflicts between heirs.
D)it will be probated in federal court.

Question 48

Which of the following is a commonly used way to avoid probate?​

A)ownership of property by tenancy in common
B)use of inter-vivos trusts
C)use of testamentary trusts
D)durable power of attorney

Question 49

A private contract among the beneficiaries, in which family members agree on a plan for distribution of the decedent's assets among themselves, is called a(n)_________________ .​

Question 50

The court process of proving the validity of a will and complying with the directions of the testator  is called

Question 51

Hiro Nakamura and Niki Sanders own a house in joint tenancy. Sanders dies, leaving a will that attempted to give her interest in the house to her mother, Jessica Larter.​

A)The will as the last expression of the Sander's intent is operational and interest in the house goes to. Jessica Larter.
B)As Nakamura's interest is perfected at the moment of Sanders's death, there is no interest left to convey by will.
C)The courts when faced with two contrary documents refuse to honor either. The interest in the house will pass intestate to lineal decedents.
D)Joint tenancy agreements unless between related persons are determined by the courts to be void. The property goes to Jessica Larter.

Question 52

One way to change a will is through an amendment to the will. This ____________ changes part of the will, but not all of it.​

Question 53

Petrelli creates an ordinary power of attorney granting the power to Mohinder to make financial decisions on his behalf. Petrelli is injured in an accident and falls into a coma. The doctors are unsure if Petrelli will recover​

A)the ordinary power of attorney is terminated as a matter of law by Petrelli' s incapacity.
B)the ordinary power of attorney is operational and it is a good thing that Petrelli thought to create it.
C)an ordinary power of attorney gives Mohinder the right to make health care decisions on Petrelli's behalf.
D)Petrelli should have created a living will to give Mohinder the power to make business and financial decisions while he is incapacitated.

Question 54

A trust, the purpose of which is to stop creditors of the beneficiaries from reaching the income or principal while it is in the hands of the trustee, is called a​

A)living trust.
B)spendthrift trust.
C)living will.
D)testamentary trust.

Question 55

A(n) ________________ is a type of self-prepared will written, signed, and dated with a complete date, all entirely in the handwriting of the testator.​

Question 56

A person who dies without a will, dies​

A)intestate.
B)in probate.
C)adempted.
D)perpetachewed

Question 57

Which of the following is not an objective of estate planning?​

A)to prolong the life of the planner through a medically approved regimen of proper diet, exercise, and rest
B)to better provide for the economic needs of the planner while alive
C)to avoid or minimize the costs, delays, and publicity of probate
D)to avoid income and estate taxes in so far as practicable

Question 58

A ( n ) _ _ _ _ _ _ _ _ _ is created by will and which becomes effective upon the death of the testator. The document will separate legal and equitable title.​

Question 59

Did you read the textbook case of McConnell v. Beverly Enterprises-Connecticut Inc? If so then selecting which of the below is accurate is easy.​

A)Ms. McConnell was determined by her doctors to be in a persistent vegetative state.
B)The property in Ms. McConnell's will was distributed in accordance with her wishes.
C)The circumstances relating to the creation of her will created a conclusive presumption of undue influence.
D)The naming of the corporate trustee was determined to be appropriate over the wishes of her beneficiary, the University.

Question 60

Amanda Silver-Lockett, married to David Lockett and mother of one child (female) named Bree, made a dated document, entirely in her own handwriting, and signed it. In the document she stated in the event of her death she wanted to leave $50,000 to River City University, $200,000 to her child Bree, and the reminder of any assets she owned to go to her loving husband David.​

A)This is an invalid will, because there are no witnesses.
B)This is an invalid will, because it is not notarized.
C)This appears to be a valid holographic will.
D)This appears to be a valid power of attorney.

Question 61

A ( n ) _ _ _ _ _ _ _ _ _ is the arrangement whereby property is transferred from one person, the _________________ to be administered by a(n) ____________________ for the benefit of a third party, the __________________ .​

Question 62

A person dies ____________ if he or she dies without having left a valid will.

Question 63

A person who creates a trust is called a(n) ___________ .​

Question 64

A trust created to provide for the maintenance of a beneficiary by preventing his or her improvidence with the bestowed funds is a(n) __________________ .​

Question 65

A ( n ) _ _ _ _ _ _ _ _ _ _ is the legal expression of a person's wishes for the distribution of his or her property after death.​

Question 66

What are the advantages and disadvantages of owning property in joint tenancy? Is it an appropriate form of ownership for two unrelated persons? Explain?​

Question 67

Please answer the following questions about probate:
a. What is probate?
b. Discuss the positive and negative attributes of probate.
c. What are common probate costs?
d. Discuss two methods of avoiding probate.​

Question 68

Fred wishes to donate money to several charities through his will but in unsure how much each should receive. So Fred donates a fixed sum of money, identifies the charities and names and empowers his good friend Wilkins McCawber to determine the amount each charity is to receive.
Wilkins has received a(n)

Question 69

A trust created and operational during the lifetime of the settler is called a(n) ______________trust and if it can be dissolved is called
_____________and if it cannot be it is called _______________.​

Question 70

Explain the purpose of a living will and a durable power of attorney. How are they different?​

Question 71

The person in charge of the personal affairs of the deceased is called a(n) _____________ if named in the will and a(n) __________________ if selected by the probate court.​

Question 72

The person subject to a guardianship is called a(n) ____________ . The person in charge of the ward's personal and financial affairs is called the __________________ .​

Question 73

A ( n ) _ _ _ _ _ _ _ _ _ _ is imposed by some states on those who receive property from a deceased person's estate.​

Question 74

State laws that regulate how property shall be distributed when a resident of the state dies without leaving a will are called __________________ laws.​

Question 75

Cecil was working on his tractor, he mistakenly put it in reverse and was pinned by the tractor. Fearful that he might not live through this experience, he used his jack knife (pocket knife) to etch in the fender of the tractor this message. "In case I die in this mess, I leave all to the wife. If Cecil dies his wife through a _______________ proceeding will try to prove the tractor fender is a​

Question 76

Those legally entitled to your estate if you leave no will are called ____________ .​

Question 77

What are the usual requirements for a valid will?​

Question 78

A failure to provide for a child can partially revoke a will. The protected child who challenges the distribution is a(n) _________________ .​

Question 79

Herbert executed a proper, formal will. In the will, Herbert left all of his property to River City University. A copy of the will was mailed to the Alumni Association of River City. Thirty days before his death, Herbert tore up the will and wrote a second one in which he left all of his property to his friend Dawn. On Herbert's death, Dawn renounced her right to receive his property. Who will get Herbert's property?​

Question 80

A(n) _____________ may be created to provide for a minor whose parents are dead.​