Deck 40: Wills and Trusts

Question 1

A will is a final declaration of how a person desires to have his or her property disposed of after death.

Answer 1

True

Question 2

The word "Mom" can qualify as a signature on a will.

Answer 2

True

Question 3

An executor is a personal representative appointed by a court for a dece?dent who dies without a will.

Answer 3

False

Question 4

A devise is a gift of real estate by will.

Question 5

For a will to be valid,the testator must remember the names of family and friends included in the will.

Question 6

A testator is a personal representative named in a will.

Question 7

A decedent is a person who has died.

Question 8

The recipient of a legacy is called a devisee.

Question 9

A holographic will is a will that is completely in the handwriting of a testator.

Question 10

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

Question 11

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

Question 12

Witnesses to a will must be mentally competent.

Question 13

In most states,a person must be eighteen years of age to execute a valid will.

Question 14

A formal will must be signed by the testator.

Question 15

A legacy is a gift of personal property by will.

Question 16

In an abatement,the legatees receive increased benefits.

Question 17

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

Question 18

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

Question 19

To execute a valid will,a testator must not respond to improper pressure brought by another person.

Question 20

A will is probated to establish its validity and to carry out the administra?tion of the estate.

Question 21

Once executed,a will cannot be revoked.

Question 22

Before he dies,Wilson makes out a will.After Wilson dies,the validity of his will must be established.This is accomplished by

A)a probate court.
B)an administrator.
C)a testator.
D)a legatee.

Question 23

A trustee is a person for whose benefit a trust is held.

Question 24

Patty creates a formal will designating how she would like her estate distributed after she dies.Patty is a(n)

A)testator.
B)heir.
C)executor.
D)administrator.

Question 25

Stepchildren are considered heirs.

Question 26

Under intestacy laws,only when no children or grandchildren survive the decedent will a surviving spouse succeed to the entire estate.

Question 27

Amelia dies without a will.A court appoints Bill to handle the probate of Amelia's estate.The administrator is

A)Amelia.
B)Amelia's eldest heir.
C)Bill.
D)the clerk of the court.

Question 28

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

Question 29

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

Question 30

If no heirs are found,the property of a decedent is transferred to a charitable organization.

Question 31

Ross makes out a will in which Steve is appointed to administer the will. After Ross dies,Steve cannot administer the will,and a court appoints Terry to handle the probate of Ross's estate. In this situation,the execu?tor is

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

Question 32

A per capita method of distribution shares equally among heirs in the same class.

Question 33

An express trust is created or declared in definite terms.

Question 34

A constructive trust is "constructed" by a property owner to fulfill certain unique functions outside the usual bounds of a trust.

Question 35

A will can be partially revoked.

Question 36

A resulting trust is a trust implied in law.

Question 37

Keri's will states,"I give to my sister Liz my condominium in Malibu,California." This is

A)a general bequest.
B)an abatement.
C)a residuary.
D)a specific devise.

Question 38

A testator cannot revoke a will by burning it.

Question 39

A divorce occurring after the execution of a will revokes dispositions of property to the former spouse.

Question 40

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

Question 41

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

A)a collateral heir.
B)a lineal descendant.
C)eighteen years of age or older.
D)mentally competent.

Question 42

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 43

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

A)does not affect the will's gift of the stock to Esau.
B)requires a gift of the stock in equal shares to Esau and Ginny.
C)revokes the whole will,which must be redrafted.
D)revokes the will's gift of the stock to Esau.

Question 44

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 45

Eighty-year-old Clark exhibits confusion,forgetfulness,and disorienta?tion.To Clark's doctor Dave,the symptoms indicate dementia.Elsa,who has significant contact with Clark,believes that he is in a state of men?tal decline.These facts indicate

A)an urgency that Clark distribute his assets.
B)Clark's lack of capacity.
C)Dave's misdiagnosis.
D)Elsa's intent to take advantage of Clark.

Question 46

Ruth executes a will in 2009 naming her nephew Stan as sole bene?fici?ary.In 2011,Ruth executes another will,naming her niece Tammy as sole beneficiary,but does not state that she is revok?ing 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 47

Bud lists his assets in writing and then makes a will,referring to the list in a way that makes the list necessary to carry out the terms of the will. This

A)does not invalidate or revoke the will.
B)makes the will entirely invalid.
C)revokes the will only to the extent of the assets in the list.
D)revokes the will only to the extent of the assets not in the list.

Question 48

Martha owns a fifty-acre farm.Martha's will states,"I leave five acres to John and five acres to William." This is

A)a general legacy.
B)a specific legacy.
C)a general devise.
D)a specific devise.

Question 49

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 50

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 51

Jackie's will states,"I leave my red sports car to Angela." This is

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

Question 52

Juli types onto a computer what she intends to be "My Will" and prints it out.Juli has capacity."My Will" is

A)invalid.
B)valid if Juli signs it.
C)valid if Juli signs it and has three witnesses sign it.
D)valid if Juli signs it,has three witnesses sign it,and files it in a cer?tain state office.

Question 53

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

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

Question 54

Lost in a canyon near Gila,Arizona,Hester writes her will in crayon,on a paper bag,while Ivan states orally how he wants his estate distributed.In most states

A)Hester's will would be invalid.
B)Ivan's will would be invalid.
C)both wills would be invalid.
D)both wills would be valid.

Question 55

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

A)invalid.
B)valid if Jill signs it.
C)valid if Jill signs it and has at least three witnesses sign it.
D)valid if Jill signs it,has at least three witnesses sign it,and files it in the appropriate state or county office.

Question 56

Jaime 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

A)only Jaime can be a witness.
B)only Jaime and Leo can be witnesses.
C)only Leo and Bev can be witnesses.
D)Jaime,Leo and Bev can all be witnesses.

Question 57

Regina handwrites her entire will on a legal pad.Regina's will is

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

Question 58

According to the terms of Carmen's will,specific gifts are made,and taxes and other es?tate 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 59

The owners of Designer Software,Inc.,want to execute wills.Eve is fif?teen 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 Software.
B)Fran and Gail only.
C)Gail only.
D)none of the owners of Designer Software.

Question 60

Richard's will leaves $5,000 to his two children,Sam and Sara.When Richard dies,he only has $8,000 to honor his bequests.Sam and Sara each receive $4,000.This is

A)an execution.
B)an abatement.
C)a division.
D)a devise.

Question 61

Amy does not create a will before she dies.Amy dies with no heirs.Her property

A)escheats.
B)terminates.
C)will be given to charity.
D)abates.

Question 62

Gus dies intestate.The debts of the estate are paid by

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

Question 63

Eve dies intestate,survived by her grandson Boyd and her sister Grace. Boyd and Grace are Eve's

A)collateral heirs.
B)inter vivos heirs.
C)lineal heirs.
D)none of the choices.

Question 64

Kit has two children,Lea (the eldest) and Merl,both of whom prede?cease 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 65

Adam has two children,Bob (the eldest) and Carol,both of whom prede?cease Adam.Bob is survived by a daughter,Dina,and Carol by two sons,Ed and Fred.On Adam's death,if the estate is distributed per stirpes

A)Dina will receive the entire estate.
B)Dina will receive one-half of the estate,and Ed and Fred will each receive one-fourth.
C)each grandchild will receive one-third of the estate.
D)the grandchildren will not receive anything.

Question 66

Aron owns a certificate of deposit with Beth,his sister,and an apartment building with Carl,his brother,in both cases as a joint tenant.Aron,a partner with Debra in Aron & Debra Accountants,obtains a life insur?ance policy with Debra as the designated beneficiary.Aron 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 resi?due of the estate to Eve,Aaron's favorite cousin.Carl dies.Aron,on his deathbed,makes a gift to the United Way.Will the certificate of deposit,the apartment building,the proceeds from the life insurance policy,and the gift to the United Way become part of Aron's estate and be distributed under the will? If not,how will these items be distributed and to whom?

Question 67

Lee's will provides for a distribution of Lee's property.Who does these things,and what are the steps involved?

Question 68

Don executes a will leaving half of his farm to his spouse Eva and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Eva divorce,but Don dies before changing his will.In these circumstances

A)Eva receives half of the farm,and Frank and Greg share the rest.
B)Eva receives half of the farm,and Frank,Greg,and Hal share the rest.
C)Frank and Greg receive the entire estate in equal shares.
D)the state inherits the entire estate.

Question 69

Ann and Burt are partners in Delta Associates.Burt takes ad?vantage of a partnership opportunity for personal gain that causes Delta's business to suffer.A court orders Burt 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 70

Clayton dies without a will.The distribution of Clayton's property,including his farm near Lincoln,Nebraska,is prescribed by

A)a court-appointed executor.
B)federal probate statutes.
C)state intestacy laws.
D)the degree of consanguinity between Clayton and his next of kin.

Question 71

Edie holds title to Floyd's property under circumstances that,al?though 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

Mason creates a trust for his son,Newt,the beneficiary,to come into existence on Mason's death.This is

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