Deck 52: Wills and Trusts

Question 1

An executor is a personal representative named in a will.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

Undue influence may be inferred when a named beneficiary is in a position to influence the making of a will.

Question 8

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

Question 9

A gift of personal property other than by will is called a legacy.

Question 10

A divorce necessarily revokes an entire will.

Question 11

A living trust is created or declared in explicit terms.

Question 12

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

Question 13

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

Question 14

Once executed, a will cannot be revoked.

Question 15

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

Question 16

To "publish" a will means to release it to the media.

Question 17

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

Question 18

A gift of real estate other than by will is called a devise.

Question 19

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

Question 20

A holographic will is an oral will.

Question 21

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

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

Question 22

Skyler dies after having made a valid will. Skyler has died

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

Question 23

Before dying from injuries suffered in a fall from a horse, Inez tells her cousin Juana that on her death, Lysander is to be given possession of Inez's Rancho Mirage. In most states, this oral "will" would be

A) not permitted.
B) permitted.
C) solid.
D) valid.

Question 24

Violet dies without a will. State laws that determine how the estate of Violet, or of any decedent, will be distributed in such a circumstance are known as

A) constructive trusts.
B) durable powers of attorney.
C) statutes of descent and distribution.
D) will substitutes.

Question 25

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 26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

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 34

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 35

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 36

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 37

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 38

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 39

Sherman dies without a will, survived by his granddaughter Roxy and Roxy's brother Pio. Roxy and Pio are Sherman's

A) collateral heirs.
B) settlors.
C) trustees.
D) lineal descendants.

Question 40

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 41

Ruby, an elderly woman, is diagnosed with lung cancer. She real?izes her condition may worsen, and that there is a chance that at some point she will become so weak the only way she will be able to breathe is with the help of medical machinery. She does not want to be kept alive in such a "vegetative state." What are Ruby's options?

Question 42

Aaron owns a certificate of deposit with Beth, his sister, and an apart?ment building with Carl, his brother, in both cases as a joint tenant. Aaron, a partner with Debra in Aaron & Debra Accountants, obtains a life insurance policy with Debra as the designated beneficiary. Aaron 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 residue of the estate to Eve, Aaron's favorite cousin. Carl dies. Aaron, on his own 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 Aaron's estate and be distributed under the will? If not, how will these items be distributed and to whom?