Deck 52: Decedents Estates and Trusts

Question 1

Antilapse statutes commonly provide that the gift to the deceased beneficiary shall not lapse but that the children or heirs of that beneficiary may take the legacy in the place of the deceased beneficiary.

Answer 1

True

Question 2

Statutes often require that the attestation of witnesses be made in the presence of the testator and in the presence of each other.

Answer 2

True

Question 3

When specifically bequeathed property is sold or given away by the testator prior to death, the bequest is considered "redeemed."

Answer 3

False

Question 4

The debts of a decedent are paid prior to distribution of any balance of the estate to those entitled to receive it.

Question 5

The judge, not the decedent, has the privilege of naming who is to administer the estate of a person who has died with a will.

Question 6

A will cannot be modified by merely crossing out a clause and writing in something new.

Question 7

A living will, now legal in most states, provides that if the testator becomes unable to express his or her wishes and is in an irreversible, incurable medical condition, he or she does not want life-sustaining medical treatments.

Question 8

A will may only be revoked by operation of law; it may not be revoked by act of the testator.

Question 9

Testamentary intent makes the provisions of the testator effective and binding during the testator's life.

Question 10

A will is very informal and may be created in any reasonable manner.

Question 11

To make a valid will, the testator must have testamentary capacity.

Question 12

A holographic will is an unwitnessed will that is written by the testator entirely by hand.

Question 13

If a trust is created to take effect within the lifetime of the settlor, it is a testamentary trust.

Question 14

A beneficiary of personal property by will may be called a devisee.

Question 15

A will, to be effective, always must be dated.

Question 16

A written will must be signed by the testator at the bottom or end of the will.

Question 17

Under the Uniform Simultaneous Death Act, if survivorship cannot be established, the property of each person is disposed of as though each had survived the other.

Question 18

Testate distribution describes the distribution that is made when the decedent leaves an invalid will.

Question 19

One desiring to leave the balance of an estate to a specified person or group after specific bequests are satisfied may do so by making a residuary bequest in a will.

Question 20

Generally, the right to make a will is limited to persons 18 or older.

Question 21

A trust is invalid if a beneficiary lacks capacity.

Question 22

Every trust must have a beneficiary.

Question 23

A codicil:

A) must be executed with the same formalities as a will.
B) is treated the same as a will.
C) does not invalidate the entire will.
D) all of the above.

Question 24

The requirements to create a trust are uniform.

Question 25

A trustee cannot make decisions on matters that could not be foreseen by the settlor.

Question 26

Which of the following is not a correct statement concerning wills?

A) Attestation is the act of witnessing the execution of a will.
B) Most states require two (2) witnesses to the execution of the will.
C) A will must be dated.
D) Self-proved wills are wills that carry a presumption that they are valid if executed according to the requirements set forth by statute.

Question 27

A trustee is not permitted to profit personally from the position of trustee, other than to receive the compensation allowed by contract or law.

Question 28

Which of the following is generally not required for the testator to have testamentary capacity?

A) The testator knows the exact value of his or her estate.
B) The testator understands the writing to be a will.
C) The testator has a reasonable appreciation of the identity of relatives and friends.
D) The testator has a reasonable appreciation of the extent of the property that may exist at death.

Question 29

Probate is the act by which:

A) the court declares an instrument is a valid will.
B) a qualified person may contest the will.
C) the witnesses sign an attestation clause.
D) publication of the will takes place.

Question 30

Unless statutory requirements are met, a will is invalid and the testator:

A) is considered to have died testate.
B) is considered to have died intestate.
C) is subject to federal law.
D) has provided guidelines of distribution.

Question 31

A failure by the settlor to name a trustee renders a trust invalid.

Question 32

Letters testamentary:

A) are given to an administrator.
B) are given to an executor.
C) require a bond to be filed by the person to whom they are given if the will exempts the requirement.
D) none of the above.

Question 33

A trustee can delegate the performance of personal duties.

Question 34

When property is transferred to a trust, the trustee has legal title and the beneficiary has equitable title.

Question 35

When a testator provides for a bequest of his gold watch to his nephew, but the gold watch is not owned by the testator at the time of death:

A) the nephew is entitled to an equivalent amount of cash.
B) the executor must purchase a similar gold watch for the nephew if funds are available.
C) the bequest to the nephew fails by ademption.
D) all legacies in the estate abate to provide funds to purchase a gold watch for the nephew.

Question 36

A trust may be terminated by its own terms.

Question 37

A trustee may keep all matters associated with the trust secret.

Question 38

An individual who desires to make provisions that will be effective only on his or her death is said to have:

A) probationary intent.
B) a prejudicial interest.
C) testamentary intent.
D) attestation intent.

Question 39

A will may be contested on grounds of:

A) lack of mental capacity of the testator.
B) undue influence, duress, or mistake.
C) forgery.
D) all of the above.

Question 40

Where a testatrix executes a will and later has a child:

A) the child is prohibited by law from receiving anything from the estate.
B) many states hold that the will of the testatrix is partially revoked by operation of law to provide a share to the after-born child.
C) a new will must be executed because the birth voids the original will.
D) the after-born child takes a share by escheat.

Question 41

A trust may be terminated:

A) in accordance with its terms.
B) by merger of all interests in the same person.
C) via revocation by the settlor if allowed by the terms of the trust.
D) all of the above.

Question 42

When distributees stand in different degrees of relationship:

A) distribution is made per stirpes.
B) distribution is made per capita.
C) a distribution cannot be made without the consent of the state.
D) none of the above.

Question 43

Which of the following is not a duty of a trustee?

A) to use reasonable skill
B) to defend the trust in court
C) to invest trust assets
D) to deliver possession of trust assets to the settlor for the trust period

Question 44

A decedent's transfer of $10,000 to a trustee, to be held in trust for A, will fail to create a valid trust if:

A) it was not supported by consideration.
B) it did not place an active duty on the trustee to manage the property in some manner.
C) A is not a family member of the decedent.
D) the trustee had no opportunity to renounce the trust.

Question 45

Which of the following is an incorrect statement concerning trusts?

A) The trustee has legal title to the corpus.
B) The beneficiary has equitable title to or beneficial interest in the corpus.
C) Generally, a beneficiary may not transfer his or her interest in the trust.
D) A trustee cannot delegate the performance of personal duties.

Question 46

The relatives of an individual who dies without a valid will may acquire title to the decedent's property through:

A) intestate succession.
B) the right of replevin.
C) testate succession.
D) the right of acquisition.

Question 47

In order for a trust to be created, who must be able to hold legal title?

A) the beneficiary only
B) the trustee only
C) either the beneficiary or the trustee
D) both the beneficiary and the trustee

Question 48

If the trustee breaches the trust, which of the following remedies might be available?

A) a money judgment
B) an injunction
C) a criminal prosecution
D) all of the above

Question 49

State intestacy statutes commonly provide for distribution in the following order:

A) spouse, parents, lineals, collateral heirs.
B) spouse, lineals, collateral heirs, parents.
C) spouse and children, other lineals, parents, collateral heirs.
D) spouse and lineals equally, parents, collateral heirs.

Question 50

Margo had only one son, and her husband had predeceased her. The son was reckless and extravagant, but Margo loved him dearly. She left all her property to a trustee in trust for her son and provided that the trust was a spendthrift trust. Margo further provided that the income from the trust was to be paid to her son quarterly until he reached the age of 30 at which time the full trust corpus was to be paid over to him. After Margo's death and before the son had reached the age of 30, the son signed a contract that purported to transfer the entire trust corpus to a finance company. The son was paid for this. The son had also run up many unpaid bills on which he was sued and judgments entered against him. The finance company and the other judgment creditors are seeking to compel the trustee to turn over the trust corpus to them. Decide.

Question 51

Fred and Mary were married. Fred had executed a will prior to the marriage that left all of his property, both real and personal, to his mother. Fred later died without changing his will. Mary feels that she should be entitled to some of Fred's estate. While waiting for Fred's estate to be finalized, Mary remarries. Mary's second husband executes a will providing for Mary. Later, after Mary and her husband adopt two children, her second husband dies. Mary feels that her children should be entitled to receive something from her second husband's estate. Is Mary and, later, are her adopted children entitled to receive something under the wills?

Question 52

A bequest of a pearl necklace is a:

A) general legacy.
B) specific legacy.
C) specific ademption.
D) residuary ademption.

Question 53

Tuttle died at age 96, leaving a will that she made at age 40 that provided that her three children would share her estate equally. At the time of her death, only one child, Anna, was living. Tuttle's two deceased children, Bill and Caroline, each had two children who were living at the time of Tuttle's death. Anna is claiming that she is entitled to the entire estate because the bequests to Bill and Caroline lapsed upon their deaths prior to Tuttle's death. How will the estate be settled?