Deck 51: Wills and Trusts

Question 1

There are age requirements for the witnesses who attest to a will.

Answer 1

False

Question 2

A codicil is a will substitute that avoids the cost of probate.

Answer 2

False

Question 3

A "living will" is a will drafted and executed during a decedent's life.

Answer 3

False

Question 4

A gift of real estate by will is generally called a bequest.

Question 5

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

Question 6

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

Question 7

The testator's signature must appear on the will.

Question 8

A power of attorney is usually limited to a specific context, such as negotiating a deal with a buyer.

Question 9

There is a requirement that testators give their estate to the natural heirs.

Question 10

A resulting trust arises from the conduct of the parties.

Question 11

A testator may revoke a will by intentionally tearing it.

Question 12

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

Question 13

An executor is a personal representative named in a will.

Question 14

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

Question 15

A will can serve no other purpose besides the distribution of property.

Question 16

A Totten trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.

Question 17

A method of accomplishing a property transfer without a will is through the joint ownership of property.

Question 18

If no children or grandchildren survive a decedent who dies without a will, a surviving spouse receives the entire estate.

Question 19

The property of a decedent escheats to his or her designated heirs.

Question 20

A testamentary trust is created by will and comes into existence on the grantor's death.

Question 21

Mason creates a trust to prevent his son, Newt, the beneficiary, from assign?ing his rights to future payments of income from the trust. This is

A) a charitable trust.
B) a constructive trust.
C) a spendthrift trust.
D) an illegal trust.

Question 22

Finnegan dies without a will, with no surviving spouse or child. Finnegan's survivors in?clude 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 23

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

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

Question 24

Karissa's will states, "I give to my sister Lexy my condominium in Miami, Florida." This is

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

Question 25

Ortensia is married to Paolo. Ortensia executes a will, leaving certain property to Paolo and other property to Quito, who is unrelated to Ortensia and Paolo. On Ortensia's death, the share of property given under the will can be renounced by

A) neither Paolo nor Quito.
B) Paolo and Quito.
C) Paolo but not Quito.
D) Quito but not Paolo.

Question 26

Genevieve, a twenty-year-old, wants to execute a will before she undertakes a moun?tain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal age for executing a will is

A) sixteen.
B) eighteen.
C) twenty-one.
D) any age.

Question 27

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

A) a codicil.
B) a holographic will.
C) a living will.
D) a nuncupative will.

Question 28

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 29

Lost in a canyon near Death Valley, California, Edina writes her will in crayon, on a paper bag, while Farrow states orally how he wants his estate distributed. Most states do not permit

A) a holographic will.
B) a nuncupative will.
C) a will written on a paper bag.
D) a will written in crayon.

Question 30

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 31

Rica is asked to be a witness to Sade's will. Before attesting to the will,

A) Rica does not have to read the will or be informed of its contents.
B) Rica must read the will and recite its contents.
C) Sade must orally tell Rica of the will's contents.
D) Sade's attorney must read the will aloud to Rica.

Question 32

Raphaelle employs a variety of will substitutes to transfer her assets, which consist principally of cash and investments in mutual funds, outside the probate process. In this situation, the most important consideration is to

A) avoid the cost of probate.
B) ensure that the arrangements benefit the intended persons.
C) establish grounds for a court's review of the arrangements.
D) follow the same principles as apply to testamentary transfers.

Question 33

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

A) abates.
B) will not lapse.
C) lapses in full.
D) lapses in part.

Question 34

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

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

Question 35

Dalmira dies without a will. A court appoints Estee to handle the probate of Dalmira's estate. Dalmira's closest blood relative is Farnham. The administrator of the estate is

A) Farnham.
B) Dalmira.
C) Estee.
D) the court.

Question 36

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.

Question 37

Hamid makes a will leaving a specific sum of money to each surviving rela?tive. The assets of Hamid's estate are not enough to make all of the gifts in full. This situation requires

A) an abatement.
B) a constructive trust.
C) a residuary.
D) a revocation.

Question 38

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 39

Finlay dies without a will. The distribution of Finlay's property, including his beachfront house near Gulf Shores, Alabama, is prescribed by

A) a court-appointed executor.
B) federal probate statutes.
C) state intestacy laws.
D) Finlay's relatives.

Question 40

Lieko wants to put some money in trust for her daughter Mari, but she does not want to lose full control over the funds in case she may need them in the future. One trust suited to Lieko's needs is

A) a constructive trust.
B) a resulting trust.
C) a spendthrift trust.
D) a Totten trust.

Question 41

Ingrid is the trustee of a trust in which Jens has a life estate and Karin has the remainder interest. The trust property is a farm. The farm is leased to Lars, who pays the rent to the trust. Property taxes are paid annually on the farm. Long-term improvements are occasionally made and paid for. A section of the farm's land is sold to Margo, one of the farm's neigh?bors. How are the payments for taxes and improvements classified (ordi?nary or extraordinary)? How are the receipts of rent and the pro?ceeds from the land sale classified? To whom are these costs and benefits allocated?

Question 42

Demetri's will provides for a distribution of his assets-including cash, jewelry, household goods, bank accounts, investments, a home, a vacation condominium, and other personal and real property-on his death. Who "distributes" this property, and what are the steps involved?