Deck 9: Estate Planning: Wills, Trusts, and Probate

Question 1

Which of the following is not an element of a trust?

A) A trustee
B) A beneficiary
C) A settlor
D) A gift
E) Trust property

Answer 1

D

Question 2

Which clause in a will distribute all property not disposed of in the other clauses of the main body of the will?

A) Devise
B) General legacy
C) Residuary clause
D) Exordium clause

Answer 2

C

Question 3

Which of the following is a reason to change a will?

A) The testator changes his or her mind
B) Circumstances change
C) Assets are acquired
D) Heirs are born and die
E) All of the above

Answer 3

E

Question 4

What type of will, usually prepared by an attorneys, is subscribed and acknowledged by the testator and witnessed by individuals who are not beneficiaries under the will?

A) Formal
B) Holographic
C) Nuncupative
D) Statutory will

Question 5

A specific bequest is:

A) money.
B) real property.
C) a specific devise.
D) a gift of specific property.
E) demonstrative legacy.

Question 6

A fiduciary owes a duty of trust to:

A) the estate.
B) the guardian.
C) the trustee.
D) the executor.
E) the heirs.

Question 7

Which clause in a will comes just before the testator's signature and the date?

A) Disinheritance clause
B) Testimonium clause
C) Opening clause
D) Exordium clause

Question 8

Who is the person named in a will who pay all debts and taxes and distributes the property in accordance with the will?

A) Administrator
B) Settlor
C) Executor
D) Beneficiary

Question 9

A person who has the duty of taking care of a person and that person's property is known as:

A) executor.
B) guardian.
C) trustee.
D) trustor.
E) None of the above

Question 10

What is the judicial procedure by which a will is proved valid or invalid and the court-supervised process that takes place after a person dies?

A) Trust
B) Will
C) Probate
D) Devise

Question 11

Changes to a will may be published in:

A) an addendum.
B) a codicil.
C) an attestation clause.
D) a testimonium clause.
E) the closing clause.

Question 12

Which clause in a will is a clause used to deprive an heir of the right to inherit?

A) Disinheritance clause
B) General legacy
C) Residuary clause
D) Exordium clause

Question 13

What type of trust, where the settlor must clearly intend to create a trust, has the following four elements: (1) a settlor, (2) a trustee, (3) trust property, and (4) at least one beneficiary?

A) Express trust
B) Implied trust
C) Testamentary trust
D) Living trust

Question 14

What type of will is handwritten by the testator?

A) Formal
B) Holographic
C) Nuncupative
D) Statutory will

Question 15

What type of trust, often called an involuntary trust, is created by law?

A) Express trust
B) Implied trust
C) Testamentary trust
D) Living trust

Question 16

Which of the following is not common to most wills?

A) The opening clauses
B) Promises not to leave anything to a disfavored child
C) The fiduciary clause
D) The closing clause
E) The body of the will

Question 17

What type of will is oral will be made by one on his or her deathbed?

A) Formal
B) Holographic
C) Nuncupative
D) Statutory will

Question 18

A living trust becomes effective:

A) during the life of the settlor.
B) upon death of the settlor.
C) upon death of the beneficiary.
D) when an express trust is created.
E) during the probate process.

Question 19

Which of the following may a person not distribute in a will?

A) Real property
B) Personal property
C) Money
D) Property owned by another
E) A car

Question 20

A gift by will of specific real property is known as a:

A) bequest.
B) devise.
C) general legacy.
D) demonstrative legacy.
E) testimonium clause.

Question 21

A will may not be changed.

Question 22

The settlor is the person who creates an express trust.

Question 23

Wills fall into three broad categories: formal,_____, and nuncupative.

Question 24

A nuncupative will, an oral will made by one on his or her deathbed, is sometimes referred to as a _____ will.

Question 25

Probate is the court-supervised process that takes places after a person dies.

Question 26

A trust is a document in which a person makes provisions for the disposition of all real property.

Question 27

A will is a document in which an individual provides for the distribution of his or her property upon his or her death.

Question 28

An implied trust is often called an involuntary trust.

Question 29

The first opening clause in a will that usually identifies the testator and includes the testator's residence, the intent to create a last will and testament, and the intent to revoke any prior wills and codicils is called the ______ clause.

Question 30

Wills fall into two broad categories: holographic and formal.

Question 31

The attestation clause is used to open the will.

Question 32

A person can change his or her will only once during their lifetime.

Question 33

A general ______ is a gift of a specific amount of money. This gift of money is taken from the assets of the general estate.

Question 34

A common element of a will is the fiduciary clause.

Question 35

Wills need not be drafted by attorneys.

Question 36

An addition or change to a will that does not contain the entire will is called a(n) _________.

Question 37

Technically a trust is a situation where the title to property is divided into two parts: legal title and equitable title.

Question 38

All guardianship documents are drafted by the court.

Question 39

The first opening clause that usually identifies the testator in a will is called the testimonium clause.

Question 40

When a person dies without a will, the law of intestate succession is applied.

Question 41

Explain how a will can be revoked or changed.

Question 42

The federal estate tax, also called the death tax by some critics, is a tax applied to the transfer of a person's assets at death. Discuss whether you think the federal government should repeal the federal estate tax. Explain your position.

Question 43

A will can be changed or revoked any time after the will is properly created and before ______.

Question 44

Compare and contrast the three broad categories of wills.

Question 45

The most common types of express trusts are living trusts and _______ trusts.

Question 46

If a person acquires legal title to property as a result of fraud, the court may impose a(n) _______ trust on the individual holding the legal title.

Question 47

During probate, the person who is named by the court to pay debts and distribute property is called a(n) _______.

Question 48

In a state that recognizes holographic wills, why would a person consult a lawyer to help draft a will rather than just write their own holographic will?

Question 49

Explain the different types of trusts.

Question 50

The person who creates a trust is called a(n)______ while the person who makes a will is called an testator/testatrix.