Deck 51: Wills and Trusts

Question 1

​In an abatement, the legatees receive increased benefits.

Answer 1

True

Question 2

A holographic will is a will expressed in 3D.​

Answer 2

False

Question 3

One who dies after having made a valid will is said to have died intestate.

Answer 3

False

Question 4

​A will must normally be attested to by two or three witnesses.

Question 5

A will can be an informal document and need not follow state requirements.​

Question 6

​A reference in a will to a written memorandum that is not in the will renders the will invalid.

Question 7

​To "publish" a will means to record it in the appropriate county office.

Question 8

A decedent is a person who has died.​

Question 9

​A gift of real estate other than by will is a devise.

Question 10

A will is required to be in writing only if real property is being transferred.​

Question 11

A legacy is a gift of personal property by will.

Question 12

The testator's signature must appear at the end of a will.

Question 13

To probate a will means to release it to the media.​

Question 14

​A lapsed legacy will occur if the testator predeceases the gift.

Question 15

A valid will is one that represents the maker's intention to transfer and distribute his or her property.​

Question 16

​In most states, a person must be twenty-one years of age to execute a valid will.

Question 17

A gift of real estate by will is a bequest.

Question 18

An "X" can qualify as a signature on a will.​

Question 19

The recipient of a legacy is a devisee.​

Question 20

​A testator is a decedent who dies without a will.

Question 21

​A testator may revoke a will by intentionally tearing it.

Question 22

Per capita is a method of dividing an intestate share of an estate.

Question 23

Maya dies without a will. A court appoints Nora to handle the probate of Maya's estate. The administrator of the estate is​

A) ​Maya's closest blood relative.
B) ​Maya.
C) ​Nora.
D) ​the court.

Question 24

A trust created by a will to come into existence on the settlor's death is an irrevocable living trust.

Question 25

​The assets in Doug's estate, including the value of his home on Elm Street and its contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs will receive

A) ​full payment in order of seniority until the assets are exhausted.
B) ​nothing-the assets will descend to the state.
C) ​reduced benefits.
D) ​the option of distributing the assets according to their wishes.

Question 26

​A married person who makes a will generally cannot avoid leaving a certain portion of the estate to the surviving spouse.

Question 27

​A resulting trust arises from the conduct of the parties.

Question 28

A trust that a grantor executes orally in contemplation of immediate death is a testamentary trust.

Question 29

When a person dies without a valid will, and no heirs exist, the state will assume ownership of the property.

Question 30

​Rose makes out a will in which Steve is appointed to administer the will. After Rose dies, Steve cannot administer the will, and a court appoints Terry to handle the probate of the estate. In this situation, the executor is

A) ​Ross.
B) ​Steve.
C) ​Terry.
D) ​the court.

Question 31

​A will can be partially revoked.

Question 32

​The trustee is the person who benefits from a trust.

Question 33

​According to the terms of Donna's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of her estate that remain are

A) ​the bequest.
B) ​the devise.
C) ​the legacy.
D) ​the residuary.

Question 34

​Undue influence can occur when a named beneficiary is in a position to influence the making of a will.

Question 35

​A codicil is a clause in a will affirming an administrator's testamentary capacity.

Question 36

​Paul makes a gift of real estate in his will to Orly. This is

A) ​a bequest.
B) ​a devise.
C) ​a legacy.
D) ​a residuary.

Question 37

​A living trust is created by a grantor during his or her lifetime.

Question 38

​The debts of a decedent must be satisfied out of his or her estate.

Question 39

Once executed, a will cannot be revoked.

Question 40

​A divorce necessarily revokes an entire will.

Question 41

​Tom executes a will in which he leaves everything to his spouse, Victoria, and in which he appoints Warren to administer his estate. This must be signed by

A) ​Tom only.
B) ​Tom and Victoria only.
C) ​Tom, Victoria, and Warren.
D) ​a probate judge.

Question 42

​Ginny opens an account at Home Bank for $250,000-most of her assets. The account provides that it is held in trust for Harriet, Ginny's nurse during the last years of Ginny's life. Less than a year later, Ginny dies, and Harriet withdraws the funds. These facts indicate

A) ​a will substitute.
B) ​a holographic will.
C) ​per stirpes distribution.
D) ​undue influence.

Question 43

Kim is asked to serve as a witness to Lian's will. To qualify, Kim must be​

A) ​a collateral heir.
B) ​a lineal descendant.
C) ​at least eighteen years old.
D) ​mentally competent.

Question 44

​Graham's will leaves $100,000 to his two children, Harry and Ida. When Graham dies, he only has $80,000 to honor his bequests. Harry and Ida each receive $40,000. This is

A) ​a constructive trust.
B) ​an abatement.
C) ​a violation of the law.
D) ​a devise.

Question 45

​Jim is fifteen years old, Leo is eighteen years old and Bev is twenty-one years old. Phil is looking for witnesses for his will. Of the three persons mentioned, the witnesses can include

A) ​only Jim.
B) ​only Jim and Leo.
C) ​only Leo and Bev.
D) ​Jim, Leo, and Bev.

Question 46

​For Melinda's will to be valid, she must be mentally competent at the time of

A) ​death.
B) ​the acquisition of the property to be distributed under the will.
C) ​the making of the will.
D) ​the probate of the will.

Question 47

Kendall executes a separate written instrument to amend her prior will. This separate document is​

A) ​a bequest.
B) ​a codicil.
C) ​a devise.
D) ​a holographic will.

Question 48

​Regina handwrites her entire will on a legal pad. This will is

A) ​invalid.
B) ​a holographic will.
C) ​a nonholographic will.
D) ​residuary.

Question 49

​Jack's will states, "I leave my red sports car to Kayla." This is

A) ​a specific legacy.
B) ​a devise.
C) ​an execution.
D) ​a general legacy.

Question 50

​In his will, Bryson makes a gift of $12,000 to Curtis. This is

A) ​a general bequest.
B) ​a general devise.
C) ​a specific bequest.
D) ​a specific devise.

Question 51

​According to the terms of Carmen's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of Carmen's estate that remain are most likely to be distributed

A) ​by codicil.
B) ​holographically.
C) ​per capita.
D) ​through a residuary clause.

Question 52

​In his will, Jason leaves $10,000 to each of his three children. However, after Jason dies and all his debts are paid, there is only $9,000 left in his estate. Each child will receive

A) ​$10,000.
B) ​$3,000.
C) ​$1,000.
D) ​$500.

Question 53

​Martin's will states, "I leave my gold pocket watch to Laurie." Laurie dies before Martin. This creates

A) ​an abatement.
B) ​a general devise.
C) ​a lapsed legacy.
D) ​a residuary legacy.

Question 54

​Before dying from injuries suffered in an accident, Lynda tells her cousin Marina that on her death, Natalia is to be given possession of Lynda's farm. In most states, this oral "will" would be

A) ​not permitted.
B) ​permitted but not probated.
C) ​valid only because its witness is not its beneficiary.
D) ​valid only because it does not involve a transfer of personal property.

Question 55

​Ruth executes a will in 2015 naming her nephew Stan as sole beneficiary. In 2017, Ruth executes another will, naming her niece Tammy as sole beneficiary, but does not state that she is revoking the previous will. On Ruth's death

A) ​Stan and Tammy will share the estate in equal shares.
B) ​Stan will be the sole heir.
C) ​Tammy will be the sole heir.
D) ​the estate will pass as if there were no will.

Question 56

​The owners of Designer Apps, Inc., want to execute wills. Eve is fifteen years old, Fran is seventeen, and Gail is nineteen. In most states, those with the capacity to execute a will are

A) ​all of the owners of Designer Apps.
B) ​Fran and Gail only.
C) ​Gail only.
D) ​none of the owners of Designer Software.

Question 57

​Meryl's daughter Nixie dies before Meryl, leaving Nixie's son Orman. On Meryl's death, it is learned that her will gives "to my daughter Nixie my farm near Pratt, Kansas." Most likely, the gift of the farm will lapse in part.

A) ​abate.
B) ​not lapse.
C) ​lapse in full.
D) ​lapse in part.

Question 58

Lani is asked to serve as a witness to Mona's will. To qualify, Lani must​

A) ​read the will to Mona.
B) ​hear Mona read the will.
C) ​read the will.
D) ​none of the choices.

Question 59

​Jill handwrites what she intends to be her will on a blank sheet of paper in ink. If Jill has capacity, this "will" is valid

A) ​under no circumstances.
B) ​if Jill signs it, without more.
C) ​if Jill signs it and at least three witnesses sign it.
D) ​if Jill signs it, at least three witnesses sign it, and it is filed in the appropriate state or county office.

Question 60

​Finnegan dies without a will, with no surviving spouse or child. Finnegan's survivors include his grandson Gallagher, his niece Hailey, and his cousin Innis. In most states, his estate would pass to

A) ​Gallagher.
B) ​Hailey.
C) ​Innis.
D) ​the state.

Question 61

​Kit has two children, Lea (the eldest) and Merl, both of whom predecease Kit. Lea is survived by a son, Nat, and Merl by two daughters, Opal and Pearl. On Kit's death, if the estate is distributed per capita

A) ​Nat will receive one-half of the estate, and Opal and Pearl will each receive one-fourth.
B) ​Nat will receive the entire estate.
C) ​the grandchildren will each receive one-third of the estate.
D) ​the grandchildren will not receive anything.

Question 62

Gwen and Hunt are partners in Investment Associates. Hunt takes advantage of a partnership opportunity for personal gain that causes the firm's business to suffer. A court orders Hunt to hold the profits in trust for the partnership. This is​

A) ​a constructive trust.
B) ​an living trust.
C) ​a resulting trust.
D) ​a testamentary trust.

Question 63

Roy dies without a will. The distribution of Roy's estate is prescribed by​

A) ​Roy's closest relatives.
B) ​durable powers of attorney.
C) ​intestacy laws.
D) ​will substitutes.

Question 64

Gunther dies intestate. The debts of the estate are paid by his​

A) ​estate, after its assets are distributed.
B) ​estate, before its assets are distributed.
C) ​heirs, after the estate's assets are distributed.
D) ​heirs, before the estate's assets are distributed.

Question 65

​Greg dies without a will. His survivors include his spouse Helen and his two children, Irene and John. Under applicable laws, of Greg's estate, Helen will probably receive

A) ​everything.
B) ​nothing.
C) ​one-half.
D) ​one-third.

Question 66

​Callahan dies without a will, survived by his granddaughter Doreen and her brother Egan. Doreen and Egan are Callahan's

A) ​collateral heirs.
B) ​legacy.
C) ​trustees.
D) ​lineal heirs.

Question 67

Winifred, an elderly woman, is diagnosed with lung cancer. She realizes her condition may worsen, and that there is a chance that at some point she will become so weak the only way she will be able to breathe is with the help of medical machinery. She does not want to be kept alive in such a "vegetative state." What are Winifred's options?

Question 68

​Ralph creates a trust by his will for the benefit of Stella and her family to come into existence on Ralph's death. This is

A) ​a constructive trust.
B) ​a living trust.
C) ​a resulting trust.
D) ​a testamentary trust.

Question 69

​Elizabeth authorizes Frieda to act on Elizabeth's behalf when she becomes incapacitated. Frieda will be able to write checks, collect insurance proceeds, and otherwise manage Elizabeth's affairs. This is

A) ​a violation of the law.
B) ​a durable power of attorney.
C) ​a living will.
D) ​a living trust.

Question 70

Lorenzo owns a certificate of deposit with Maria, his sister, and a commercial building with Navarro, his brother, in both cases as a joint tenant. Lorenzo, a partner with Othelia in Lorenzo & Othelia Physicians, obtains a life insurance policy with Othelia as the designated beneficiary. Lorenzo writes a will that gives particular items of personal property, as well as specific amounts of cash, to his children and his friends. The will leaves the residue of the estate to Paulina, Lorenzo's favorite cousin. Navarro dies. Lorenzo, on his own deathbed, makes a gift to the United Way. Will the certificate of deposit, the commercial building, the proceeds from the life insurance policy, and the gift to the United Way become part of Lorenzo's estate and be distributed under the will? If not, how will these items be distributed and to whom?​

Question 71

​Edie holds title to Floyd's property under circumstances that, although nothing is express, indicate this is apparently only for Floyd's benefit. This is

A) ​an illegal trust.
B) ​an living trust.
C) ​a resulting trust.
D) ​a testamentary trust.

Question 72

​Jade signs an advance health directive that states what medical treatment may be used after a serious accident or illness. She indicates that she wants certain lifesaving procedures to be undertaken unless the treatment will not result in a reasonable quality of life. This is

A) ​a durable power of attorney.
B) ​a health-care power of attorney.
C) ​a living will.
D) ​a living trust.