Deck 50: Trusts and Wills

Question 1

A resulting trust depends on a contract or agreement as evidenced by the parties' acts.

Answer 1

False

Question 2

A codicil to the will must be executed with all the formal requirements of a will.

Answer 2

True

Question 3

Consideration is not necessary in order to enforce a trust.

Answer 3

True

Question 4

Constructive trusts are generally found where the creator clearly intended a trust to be formed.

Question 5

A witness to a will who is "interested" will be disinherited or disqualified.

Question 6

A trust for the dissemination of a particular political doctrine cannot be a charitable trust.

Question 7

A trust is presumed to be irrevocable unless the grantor reserves the power of revocation.

Question 8

There is no such thing as an irrevocable will.

Question 9

The death of the beneficiary will generally terminate the trust.

Question 10

A second will automatically revokes an earlier will if it is wholly inconsistent.

Question 11

Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself.

Question 12

The powers of a trustee are determined solely by the trust instrument.

Question 13

If a will was burned in an electrical fire that destroyed the testator's home, it will be presumed to be revoked.

Question 14

In most states, there is no lower age limit for testators as long as they understand the extent of their property.

Question 15

A totten trust is revocable by the creator.

Question 16

A minor's declaration of trust is voidable.

Question 17

A trust may serve any purpose that is not against the law or public policy.

Question 18

The courts may create implied trusts.

Question 19

An express trust may be found if the intent of the grantor to create a trust is unmistakable.

Question 20

A person's written statement that he is leaving property "to Margaret in full confidence and with hope she will take care of Tina" is too indefinite to create a trust.

Question 21

Divorce or marriage will result in a revocation of a will.

Question 22

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.

Question 23

Of the following elements, which one is NOT required to create an enforceable trust?

A) Consideration.
B) A beneficiary.
C) Legal capacity.
D) Specific property.

Question 24

A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted.

Question 25

Renunciation is a statutory right of a surviving spouse to give up her statutory share in the estate.

Question 26

An express trust is a trust:

A) created only by an oral statement.
B) established by voluntary action.
C) established by law through the courts when the parties' conduct seems to warrant the creation of a trust.
D) All of these.

Question 27

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff.Even if the check is made out in the name of the attorney, it will belong to the client as a:

A) spendthrift trust.
B) totten trust.
C) constructive trust.
D) resulting trust.

Question 28

A totten trust involves a bank account opened by the settlor of the trust.

Question 29

A photocopy of a will or a will written in pencil would not be valid for probate.

Question 30

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

Question 31

A trust for the establishment and maintenance of a museum would be a charitable trust.

Question 32

A will entirely in the handwriting of the testator is called what type of will?

A) Conditional.
B) Codicil.
C) Nuncupative.
D) Holographic.

Question 33

A completely handwritten will is valid only if witnessed.

Question 34

A totten trust may also be referred to as a savings account trust.

Question 35

Lathan served as a witness to Samuel's will, but died before Samuel.When Samuel's will is probated, proof of Lathan's handwriting is necessary unless there are enough other witnesses to meet the statutory requirements without Lathan .

Question 36

As long as a decedent's wishes are clear, the formalities of a will need not be strictly met in order for the will to be valid.

Question 37

The owner of legal title to the property in a trust is the:

A) trustee.
B) settlor.
C) grantor.
D) beneficiary.

Question 38

Once a trust is validly created, it is revocable.

Question 39

Taxes imposed at death include:

A) federal estate tax on the transfer of property at death.
B) state inheritance tax on the privilege of an heir or beneficiary to receive the property.
C) income tax that the estate must pay on income received during estate administration.
D) All of these.

Question 40

If a person dies intestate, his property will be:

A) given to his beneficiaries.
B) passed to his children.
C) distributed as prescribed by the state.
D) kept by the state.

Question 41

Testamentary capacity refers to:

A) the same capacity as required to contract.
B) the age of the testator.
C) the ability to understand the nature and extent of one's property, to appreciate the natural objects of one's bounty, and the ability to formulate an orderly plan of disposition.
D) the influence of others over the testator.

Question 42

The characteristics of a spendthrift trust include which of the following?

A) Spendthrift provisions are not valid in most states.
B) A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income.
C) Trust creditors can never seize income from a spendthrift trust.
D) All of these.

Question 43

A trust will fail for lack of:

A) definite and specific property forming the trust corpus.
B) consideration.
C) a trustee.
D) All of these.

Question 44

A valid will must be witnessed.Which of the following statements about witnesses is correct?

A) Under the law in all states, witnesses lose any bequests to them in a will they witness.
B) The witnesses must see the testator write the will.
C) The witnesses must sign the will.
D) Most states require only one witness to a will.

Question 45

All of the following may, in general, revoke a will by operation of law EXCEPT:

A) subsequent marriage.
B) subsequent divorce.
C) birth of a child.
D) all of these will revoke a will by operation of law.

Question 46

Probate is the:

A) actual property given away in a will.
B) reading of a will by a lawyer.
C) process of managing the distribution of a deceased person's property.
D) process of declaring a person dead.

Question 47

Which of the following statements about wills is correct?

A) Another writing may be incorporated by reference into a will.
B) The testator cannot have any "help" in signing a will.
C) A will must be written on one piece of paper.
D) The testator must sign his or her full name.

Question 48

An amendment to a will is called a(n):

A) statutory adjustment.
B) codicil.
C) stipulated addition.
D) attestation.

Question 49

In most states, a trustee's investment decisions are usually governed by:

A) the prudent person rule.
B) judiciary determination.
C) The Uniform Principal and Income Act.
D) the beneficiary's intent.

Question 50

Which of the following will be acceptable as a witness to a will?

A) The testator's spouse.
B) The spouse of a beneficiary.
C) The beneficiary of a testamentary trust.
D) The administrator of the estate.

Question 51

In order to be valid, a will must generally include all but which one of the following?

A) Signature of the testator.
B) Signatures of witnesses.
C) A written document.
D) Signature of the executor.

Question 52

A living will is a document that:

A) cannot be revoked.
B) contains the maker's wishes regarding extraordinary medical treatment.
C) is videotaped.
D) is capable of being changed from time to time, unlike other wills.

Question 53

Which of the following is/are considered to be conduct to invalidate a will?

A) Duress.
B) Undue influence.
C) Fraud.
D) All of these.

Question 54

A trust created by will and effective after the death of a testator is called a(n):

A) inter vivos trust.
B) testamentary trust.
C) cy pres trust.
D) charitable trust.

Question 55

Which of the following is true about a constructive trust?

A) It is revocable by the trustee.
B) It normally contains detailed instructions for the trustee to follow.
C) The court imposes it to redress an injustice.
D) It carries out the intentions of the trustee.

Question 56

A statement signed by the required number of witnesses who observe the execution of a valid will is called a(n):

A) fiduciary clause.
B) ambulatory clause.
C) attestation clause.
D) validity clause.

Question 57

Almost all jurisdictions require that:

A) a charitable trust have at least two trustees.
B) express trusts of real property be in writing.
C) an inter vivos trust have at least two trustees.
D) trusts have at least four witnesses.

Question 58

A trustee has a duty to make proper allocation of benefits and burdens between income beneficiaries and remaindermen.Which of the following statements is true concerning this allocation?

A) Any profit from the use of trust property is allocated to the remaindermen.
B) Current expenses are chargeable to the remaindermen.
C) Extraordinary expenses are chargeable to the remaindermen.
D) Money paid for the use of trust property is chargeable to the remaindermen.

Question 59

The characteristics of a totten trust include:

A) it is a joint bank account opened by the settlor of the trust.
B) it is tentative.
C) transfer of ownership is complete only on the depositor's death.
D) All of these.

Question 60

Megan, who has no heirs or next of kin, makes a will leaving her estate to her best friend, Pat.If Megan's will is witnessed by only two instead of three people as required by her state statute, upon her death her estate will:

A) go to Pat without court involvement.
B) escheat to the state.
C) be given to a charity as determined by the probate court.
D) go through probate, at which time the court will try to determine Megan's intent as to disposition and follow that intent.

Question 61

Dan, a widower, dies intestate.He leaves two surviving children, Joe and Carrie, and two grandchildren who are children of his deceased daughter, Debra.If Joe and Carrie each take one-third of his estate and the grandchildren each take one-sixth of the estate, this is described legally by the statement that:

A) collateral heirs take the property per stirpes .
B) lineal descendants and collateral heirs take the property per capita .
C) lineal descendants take the property per capita .
D) lineal descendants of predeceased children take property per stirpes .

Question 62

Under what conditions do courts impose a constructive trust?

Question 63

Jameson, a trustee, fraudulently purchases property with trust funds and puts title in his own name.What type of trust will a court create?

A) Implied trust.
B) Express trust.
C) Constructive trust.
D) Resulting trust.

Question 64

In 2000, Jack executed a valid will in which he left his entire estate to the Heart Fund.In 2008, Jack was declared incompetent and committed to an institution.At his death in 2015, his son, Brian, who was his sole survivor, contested the will claiming that Jack was obviously incompetent.Will Brian prevail with this argument? Explain.

Question 65

In the case of Keeney v.Keeney , the court found:

A) a totten trust is a tentative trust and the transfer of ownership becomes complete only upon the depositor's death.
B) a constructive trust is created by equity regardless of the intention of the parties to create a trust where legal title to property is obtained through fraud or undue influence rendering it unconscionable for the holder of legal title to retain the property.
C) the existence of a confidential relationship prohibits the trustee from seeking any personal benefit.
D) intention of the parties is the sole consideration in determining the existence of a trust.

Question 66

The duties of a trustee are:

A) to act with prudence and care in the administration of the trust.
B) to exercise a high degree of loyalty toward the beneficiary.
C) to carry out the purposes of the trust.
D) All of these.

Question 67

Which of the following is untrue regarding the revocation of a will?

A) There can be a partial revocation.
B) The execution of a second will does not of itself constitute a revocation of an earlier will.
C) Divorce does not ordinarily revoke a will.
D) An inadvertent destruction of a will acts as a revocation.

Question 68

Rules for the distribution of property in a situation involving intestate succession:

A) apply where the testator has failed to name an administrator.
B) have no application to real estate owned by the decedent.
C) do not apply to property held in joint tenancy.
D) prevent disposition of property by a valid will.

Question 69

Clarence is the trustee of a trust.With $75,000 of his own money, Clarence purchases a parcel of real estate.Two months later, he sells the parcel to the trust for $150,000 and pockets the profit.Discuss the situation in terms of the duties and powers of the trustee.

Question 70

Which of the following would be charged to the life tenant's interest in the course of administering a trust?

A) Ordinary repairs to trust property.
B) Expenses of selling a trust investment.
C) Permanent improvements to the trust property.
D) The costs of establishing the trust.

Question 71

Darrell executed a will fifteen years ago.Now he has changed his mind about how he wants his estate distributed and who he wants to appoint as executor.Discuss how Darrell may revoke his will.

Question 72

Each trust has which of the following?

A) Corpus.
B) Testator.
C) Executor.
D) All of these.

Question 73

For a memorandum to be incorporated into a will, which of the following conditions must be met? The memorandum must be:

A) in writing.
B) adequately described in the will.
C) in existence when the will is executed.
D) All of these.

Question 74

Identify and describe the following types of wills.
a.Holographic
b.Nuncupative
c.Soldiers' and sailors' will

Question 75

Darla dies intestate leaving two children, Brad and Christopher.Her daughter, Anna, died two years earlier.Anna had three children, Iris, Jeffrey and Keith.If Darla leaves an estate of $300,000, how much will Jeffrey's share be under the usual statutes of descent and distribution?

A) $0.
B) $33,333.
C) $100,000.
D) $60,000.

Question 76

In 2010, Boyd created a trust that would become effective on his death.In the trust instrument, Boyd specified that all of the income from his stocks and bonds be used for the benefit of St.John's Hospital and indicated that his brother Chad should administer the trust.
a.What kind of trust is this?
b.What is Boyd with relationship to the trust?
c.What is the corpus of the trust?
d.What is Chad with relationship to the trust?

Question 77

Which of the following is true regarding property distribution upon a person's death intestate?

A) At common law, property lineally ascended to parents if there was no surviving spouse and there were no children.
B) Today, in all states, if there is a surviving spouse, he or she gets the entire estate.
C) Rules of descent vary widely from state to state.
D) All of these.