Deck 50: Wills and Trusts

Question 1

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

Answer 1

False

Question 2

If property escheats, its title is transferred to a person's nearest blood relative.

Answer 2

False

Question 3

For a will to be valid, a testator must be of "sound mind" at the time of death.

Answer 3

False

Question 4

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

Question 5

An administrator is a personal representative named in a will.

Question 6

Most states permit a nuncupative will if it is made before witnesses.

Question 7

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

Question 8

One who dies without a valid will creates a lapsed legacy.

Question 9

One who dies with a valid will has died in probate.

Question 10

A will is probated in part to establish its validity.

Question 11

If no heirs are found, the property of a decedent escheats to charitable organizations.

Question 12

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

Question 13

A legatee is a person who dies after having made a valid will.

Question 14

A testator may revoke a will by tearing it.

Question 15

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

Question 16

A testator is a decedent who dies without a will.

Question 17

To execute a valid will, a testator must remember the "natural objects of his or her bounty."

Question 18

A nuncupative will is an oral will.

Question 19

A will in that passes "three dimensional" assets such as real estate, as opposed to "two dimensional" paper assets, is a holographic will.

Question 20

A lapsed legacy will occur if the testator predeceases the legatee.

Question 21

An express trust is created or declared in explicit terms.

Question 22

The trustee is the person for whose benefit a trust is held.

Question 23

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

Question 24

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

Question 25

A child born after a will has been executed may still inherit a portion of his or her parent's estate.

Question 26

If a trust provides for its termination on the beneficiary's death, the death will end the trust.

Question 27

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

Question 28

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

Question 29

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

Question 30

A codicil is a clause in a will affirming the testator's testamentary capacity.

Question 31

A court will apply the same principles in reviewing a transfer outside probate as it would apply to a testamentary transfer.

Question 32

If a trust does not provide for its termination, it will not terminate.

Question 33

A trust that a grantor executes orally in contemplation of imme?diate death is a testamentary trust.

Question 34

Once executed, a will cannot be revoked.

Question 35

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

Question 36

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

Question 37

The "prudent person rule" controls the distribution of assets by will.

Question 38

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

Question 39

In a spendthrift trust, a beneficiary can transfer his or her right to the trust's principal if the transfer is "thrifty."

Question 40

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

Question 41

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

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

Question 42

For Troy's will to be valid, he 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 43

Lost in a canyon near Gila, Arizona, Hedy writes her will in crayon, on a paper bag, while Ivan states orally how he wants his estate distributed. Most states do not permit

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

Question 44

The assets in Dong'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 45

One summer afternoon, Eve, Faruk, and Galen decide to each draft and sign a "Last Will and Testament." Eve is fif?teen years old, Faruk is seventeen, and Galen is nineteen. In most states, those with the capacity to execute a will would be

A) Eve, Faruk, and Galen.
B) Faruk and Galen only.
C) Galen only.
D) not Eve, Faruk, or Galen.

Question 46

Sargent dies without a will. Sargent has died

A) escheated.
B) in probate.
C) intestate.
D) testate.

Question 47

In his will, Vigor makes a gift of $10,000 to Wylie. This is

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

Question 48

Char's daughter Delsey dies before Char, leaving Delsey's son Egor. On Char's death, it is learned that Char's will gives "to my daughter Delsey my ranch in Mesquite County, Texas." Most likely, the gift of the ranch

A) abates.
B) does not fail.
C) lapses in full.
D) lapses in part.

Question 49

Gigi, 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 years of age.
B) eighteen years of age.
C) twenty-one years of age.
D) twenty-five years of age.

Question 50

Travis's will states, "I give to my brother Uri my gold pocket watch." This is

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

Question 51

Kerilyn executes a will to distribute her assets, including two commercial buildings in Little Rock, Arkansas, and other investment properties in other states, on her death. Subject to certain limitations, the most important, and controlling, factor for this distribution is

A) the careful observance of formalities during the will's execution.
B) the intent of Kerilyn.
C) the laws of the states in which the assets are located.
D) the policies of the state in which the will is executed.

Question 52

Patsy makes a gift of real estate in her will to Quinn. This gift is

A) a bequest.
B) a devise.
C) a legacy.
D) an abatement.

Question 53

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

A) Philomena's closest blood relative.
B) Philomena's first-named heir.
C) Quigley.
D) the court.

Question 54

Jock makes a will. As a person who makes a will, Jock is

A) an administrator.
B) an executor.
C) a settlor.
D) a testator.

Question 55

Dieter opens an account for $100,000 at East State Bank. The account pro?vides that its funds, which represent most of Dieter's assets, are held in trust for Flo, the bank employee who opens the account and who re?tains the card required to access it. Less than a year later, Dieter dies, and Flo withdraws the funds. These facts indicate

A) a living trust.
B) a nuncupative will.
C) descent by election.
D) undue influence.

Question 56

Before dying from injuries suffered in an auto accident, Beamer tells his relatives that on his death, Clotilde is to have all of his posses?sions. Beamer has made

A) a codicil.
B) a constructive will.
C) an inter vivos will.
D) a nuncupative will.

Question 57

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

A) an abatement.
B) a publication.
C) a residuary.
D) a revocation.

Question 58

According to Lou's will, specific gifts are made, and taxes and other es?tate expenses and debts are paid. The assets of Lou's estate that remain are

A) a lapsed legacy.
B) a general bequest.
C) an abatement.
D) the residuum.

Question 59

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 60

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 61

Benny dies without a will, with no surviving spouse or child. Benny's survivors in?clude his granddaughter Callie, his nephew Doug, and his cousin Earl. In most states, his estate would pass to

A) Callie.
B) Doug.
C) Earl.
D) the state.

Question 62

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

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

Question 63

Gus dies without a will. Under applicable laws, the debts of his 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 64

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 65

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that

A) income taxes do not have to be paid on trust earnings.
B) the assets are sheltered from the payment of estate taxes.
C) the assets can be transferred without going through probate.
D) the trust does not come into existence until the grantor's death .

Question 66

Deborah dies without a will. State laws that determine how a decedent's es?tate will be distributed in such circumstances are known as

A) estate administration laws.
B) probate laws.
C) statutes of descent and distribution.
D) will substitutes.

Question 67

Irma dies without a will, survived by her granddaughter Joey and Joey's brother Keno. Joey and Keno are Irma's

A) collateral heirs.
B) constructive heirs.
C) inter vivos heirs.
D) lineal descendants.

Question 68

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

A) a codicil.
B) a constructive will.
C) an inter vivos will.
D) a nuncupative will.

Question 69

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

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

Question 70

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 71

Brick executes a will, telling the witnesses that the document they are about to sign is his "last will and testament." After Brick's death, the will is ad?mitted for probate. Cecily, his lawyer, reads the will to his heirs. The pub?lication of the will is

A) Brick's declaration to the witnesses.
B) Brick's execution of the will.
C) Cecily's reading of the will to Brick's heirs.
D) the admission of the will for probate.

Question 72

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Elsie divorce, but Don dies before changing his will. Under the Uniform Probate Code

A) Elsie receives half of the farm, and Frank and Greg share the rest.
B) Elsie 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 73

Dotty creates a trust by her will for the benefit of Eppie and her family to come into existence on Dotty's death. This is

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

Question 74

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 75

Owen dies without a will, survived by his niece Patty and his uncle Quinn. Patty and Quinn are Owen's

A) collateral heirs.
B) constructive heirs.
C) inter vivos heirs.
D) lineal descendants.

Question 76

Cliff dies without a will. His survivors include his spouse Dana and his two children, Efrem and Fay. Under applicable laws, of Cliff's estate, Dana will probably receive

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

Question 77

Frank wants to put some money in trust for his son Greg, but he does not want to lose full control over the funds in case he may need them in the future. One trust suited to Frank's needs is

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

Question 78

Grey has two children, Ham (the eldest) and Ivy, both of whom prede?cease Grey. Ham is survived by a daughter, Jess, and Ivy by two sons, Kato and Lars. On Grey's death, if the estate is distributed per stirpes

A) each grandchild receives one-third of the estate.
B) Jess receives one-half of the estate, and Kato and Lars each receive one-fourth.
C) Jess receives the entire estate.
D) the grandchildren receive nothing.

Question 79

Lolly 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 80

Max is married to Nina. Max executes a will, leaving certain property to Nina and other property to Opal, who is unrelated to Max and Nina. On Max's death

A) neither Nina nor Opal can renounce their shares.
B) Nina and Opal can both renounce their shares.
C) Nina can take only what the will provides but Opal can renounce her share.
D) Opal can take only what the will provides but Nina can renounce her share.