Deck 52: Wills, Trusts, and Estates

Question 1

Which of the following wills is an exception to the writing rule of the Statute of Wills?

A) a reciprocal will
B) a holographic will
C) a nuncupative will
D) a codicil will

Answer 1

C

Question 2

Which of the following statements is true of reciprocal wills?

A) They can be held invalid as to one testator but not the other.
B) They are to be executed as one will with mutual terms.
C) Any will that is executed by two or more testators is a reciprocal will.
D) They cannot be unilaterally revoked after one of the parties has died.

Answer 2

D

Question 3

What is the attestation clause for a will?

A) the condition that the witness must reside in the jurisdiction in which the testator is domiciled
B) the stipulation that only the testator's attorney can be a witness to the will
C) the requirement of signatures of witnesses on a will after that of the testator's
D) the requirement of the beneficiary's presence when making the will

Answer 3

C

Question 4

Who is a beneficiary of a will?

A) a person assigned in a will to create a trust
B) a person allowed to transfer the testator's legal title to property to another person
C) a person designated in the will to receive the testator's property
D) a person nominated in a living will to make all health care decisions in accordance with the testator's wishes

Question 5

A will is a testamentary deposition of property.

Question 6

A will can be created to come into effect during one's lifetime.

Question 7

A codicil must be ________.

A) executed before the will has been created
B) read as a separate instrument from the will
C) inclusive of a reference to the will it is amending
D) amended in the presence of the same witnesses who signed the will

Question 8

A beneficiary under a will cannot be a witness of that will.

Question 9

What is a codicil?

A) a type of will that cannot be amended once created
B) a separate document that must be executed to amend a will
C) a will that has been attested by the beneficiary of the will
D) a duplicate of a will that is used in case the original is destroyed

Question 10

________ arise where two or more testators execute separate wills that leave their property to each other on the condition that the survivor leave the remaining property on his or her death as agreed by the testators.

A) Nuncupative wills
B) Mutual wills
C) Joint wills
D) Living wills

Question 11

Nicknames or titles cannot be used as a testator's signature in a will.

Question 12

Which of the following statements is true of a testator's signature on a will?

A) The testator's signature must be obtained in the presence of the sole beneficiary as the principal witness.
B) The will need not be signed by the testator if it is already attested by witnesses.
C) The use of nicknames and honorary titles while signing a will render it unenforceable and invalid.
D) The testator's signature must appear at the end of the will to prevent chances of any fraud.

Question 13

A will has to be written on legal paper to be considered valid.

Question 14

The action of a will being witnessed by two or three objective and competent people is known as ________.

A) attestation
B) abatement
C) escheating
D) ademption

Question 15

A Statute of Wills permits all oral wills to be legally binding in a state.

Question 16

An oral will that is made before a witness during the testator's last illness is defined as a ________.

A) holographic will
B) nuncupative will
C) living will
D) joint will

Question 17

What is a holographic will?

A) a will that is revoked on behalf of the testator by a legal attorney
B) a will that requires the beneficiary to be a witness of the will
C) a will that is entirely handwritten and signed by the testator
D) a will that is orally declared on the testator's deathbed

Question 18

Which of the following statements is true of the requirements for making a will?

A) A will need not be signed by the testator if it is created in the presence of witnesses.
B) A will need not be written to be considered valid only if it is a dying declaration.
C) A will cannot incorporate any other documents by reference.
D) The legal age for executing a will is set at 25 years across all states.

Question 19

A will that is executed by two or more testators is known as a ________.

A) joint will
B) mutual will
C) reciprocal will
D) nuncupative will

Question 20

A living will states a person's wishes regarding estate planning.

Question 21

The process of a deceased's property being collected, debts and taxes being paid, and the remainder of the estate being distributed is known as ________.

A) probate
B) abatement
C) ademption
D) adjournment

Question 22

A mutual will cannot be unilaterally revoked after one of the parties has died.

Question 23

A gift of $100,000 to a named beneficiary is an example of a general gift.

Question 24

A gift of $30,000 to a named beneficiary is an example of a ________ gift.

A) special
B) general
C) legacy
D) residuary

Question 25

A person who inherits property under a will or an intestacy statute takes the property subject to all the outstanding claims against it.

Question 26

A distribution of an estate in which grandchildren and great-grandchildren of the deceased inherit by representation of their parent is known as a(n) ________.

A) abatement
B) per stirpes distribution
C) per capita distribution
D) ademption

Question 27

A will cannot be amended by merely striking out existing provisions and adding new ones.

Question 28

A codicil is considered to be a separate instrument from the will it references.

Question 29

If two or more testators execute the same instrument as their will, the document is called a reciprocal will.

Question 30

A ________ is a specialized state court that supervises the administration and settlement of estates.

A) small claims court
B) federal court
C) tort court
D) probate court

Question 31

________ is a principle that says if a testator leaves a specific devise of property to a beneficiary, but the property is no longer in the estate when the testator dies, the beneficiary receives nothing.

A) Ademption
B) Abatement
C) Bailment
D) Attestation

Question 32

The ________ doctrine says that if the property a testator leaves is insufficient to satisfy all the beneficiaries named in a will and there are both general and residuary bequests, the residuary bequest is paid last.

A) ademption
B) inter vivos
C) abatement
D) adjournment

Question 33

Which of the following beneficiaries is considered a lineal descendant of the testator?

A) a parent
B) a child
C) a spouse
D) a sibling

Question 34

Reductions under the doctrine of abatement are proportionate for all beneficiaries ________.

A) when there are residuary gifts and special gifts
B) when there are residuary and general gifts
C) when there are only general gifts
D) when there are only residuary gifts

Question 35

A properly executed subsequent will revokes a prior will.

Question 36

What are the requirements of the Statute of Wills?

Question 37

Who is an executor?

A) a person appointed by the government to conduct the probate
B) a person designated in the will to conduct the probate
C) a person who is beneficiary of the probate
D) a person who is usually appointed to help administer the estate and to complete the probate

Question 38

A gift of real estate by will is called a(n) ________.

A) bequest
B) devise
C) abatement
D) general gift

Question 39

A probate can only be conducted by a lineal descendant of the testator.

Question 40

Nuncupative wills are legally binding oral wills that are made on a testator's deathbed in the absence of witnesses.

Question 41

The receiver of property under intestacy statutes is known as a(n) ________.

A) assignee
B) trustee
C) beneficiary
D) heir

Question 42

An equitable trust that is implied by law to avoid fraud, unjust enrichment, and injustice is defined as a ________.

A) constructive trust
B) testamentary trust
C) spendthrift trust
D) token trust

Question 43

According to the doctrine of ademption, the lineal descendants inherit by representation of their parent.

Question 44

Bill and Deidre were married for 22 years. They died in a car accident without leaving behind a will. They had no surviving children, but they were close to many of their living relatives. According to the Uniform Simultaneous Death Act, how would the couple's properties be distributed following their death?

A) It would be made into a charitable fund by a court-appointed trustee.
B) It would escheat to the government.
C) It would be distributed to their respective relatives.
D) It would be sold by the government, and the proceedings from the sale would then go to their relatives.

Question 45

The ________ is an act in the United States that provides that if people who would inherit property from each other die such that it cannot be determined who died first, each person's property is distributed as though he or she had survived.

A) Succession Act of 1995
B) Family Law Act of 1986
C) Uniform Determination of Death Act
D) Uniform Simultaneous Death Act

Question 46

According to the Uniform Simultaneous Death Act, each deceased's property goes to the government in case of simultaneous deaths.

Question 47

Mr. Cartledge places his estate in a trust while he is alive, and he names a local bank as the trustee to administer the trust and invest its assets. The trust designates his wife as the income beneficiary of his estate and stipulates that their children Brendan and Margaret will receive the assets of the trust after his wife's death. Brendan and Margaret are the ________ in this scenario.

A) collateral heirs
B) income beneficiaries
C) remainder beneficiaries
D) settlors

Question 48

What is intestate succession?

Question 49

What is a trust corpus?

A) property and assets that are claimed in case of intestacy
B) property and assets that the trustee has an equitable right to
C) property and assets escheated to the government in the absence of a trustee
D) property and assets held in trust to be used for the benefit of a third person

Question 50

Pursuant to per capita distribution, all the lineal descendants equally share the property of the estate.

Question 51

In case of abatement, if a will provides for both general and residuary gifts, the residuary gifts are abated first.

Question 52

Mr. Raynold writes a will placing his estate in a trust on his death. He names a local bank as the trustee to administer the trust and invest its assets. The trust provides that when his grandson reaches the age of 23, the trust will terminate, and he will be given legal title to the assets. Mr. Raynold dies when the grandson is 12 years old. At the age of 23, the grandson inherits the title to the assets. What kind of trust is created by Mr. Raynold in this scenario?

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

Question 53

Wilma buys a painting that is to be sold at an auction next week, but she has an unforeseen engagement that requires her to go out of town on the day of the auction. She asks her sister, Sara, to attend the auction and bid for the painting. If the sale is successful, Sara is to claim legal title to the painting until Wilma returns. What kind of trust is created between Wilma and Sara?

A) a charitable trust
B) a testamentary trust
C) a token trust
D) a resulting trust

Question 54

When does the deceased's property, in intestacy, escheat to the government?

A) when the deceased has no living relatives
B) when the deceased leaves behind property that has an existing mortgage on it
C) when the deceased has executed a living will prior to his or her illness or death
D) when the deceased has no lineal descendants

Question 55

If the deceased has no surviving relatives, then the deceased's property escheats to the state.

Question 56

A(n) ________ is a legal arrangement established when one person transfers title to property to another person to be held and used for the benefit of a third person.

A) will
B) trust
C) escheatment
D) abatement

Question 57

A(n) ________ is a distribution of an estate in which each grandchild and great-grandchild of the deceased inherits equally with the children of the deceased.

A) abatement
B) per stirpes distribution
C) per capita distribution
D) ademption

Question 58

The state of having died without leaving a will is known as ________.

A) testate
B) intestate
C) bistate
D) intrastate

Question 59

Relatives who receive property under intestacy statutes are called beneficiaries.

Question 60

Who receives the trust res on the termination of a trust?

A) the heir
B) the trustor
C) the remainder beneficiary
D) the income beneficiary

Question 61

Chen Stevenson died at the age of 85 leaving behind all his property to Phillip Miller, his butler. The news of the new will that Chen executed three months before his death naming Phillip as the sole beneficiary surprised everyone. By his prior will, he had bequeathed his estate to his two daughters and three grandchildren on a per capita basis. The court took up proceedings to determine the validity of his new will because Chen's rejection of his daughters and grandchildren in his will was uncharacteristic of him. The court most likely suspected this change to be a case of ________.

A) constructive trust
B) undue hardship
C) undue influence
D) spendthrift trust

Question 62

Which of the following is a benefit of a living trust?

A) It helps reduce estate taxes more than a will does.
B) It helps avoid probate associated with the property.
C) It is not subject to property division on divorce.
D) It does not allow creditors to obtain liens against the property.

Question 63

All trusts are deemed irrevocable at the time of creation.

Question 64

In a trust arrangement, the trustee has legal title to the trust corpus, and the beneficiary has equitable title.

Question 65

In a spendthrift trust, all control over the trust is removed from the beneficiary.

Question 66

When there is an allegation of undue influence in making a will, the courts only consider direct evidence as proof.

Question 67

A living trust does not allow creditors to obtain a lien against property in the trust.

Question 68

Trusts are used to transfer property that is to be held and managed for the benefit of another person or persons.

Question 69

A Totten trust is considered a tentative trust because a trustee can add or withdraw funds from the trustee's account.

Question 70

Which of the following is a similarity between a living trust and an inter vivos trust?

A) both of them are subject to probate
B) both of them require the beneficiaries to be present during the time of creation of the trust
C) both of them are created while the settlor is still alive
D) both of them are free from changes resulting from operations of law like annulment

Question 71

From which of the following parties can a creditor recover in a spendthrift trust?

A) the reminder beneficiary
B) the income beneficiary
C) the trustee
D) the successor trustee

Question 72

The primary purpose of using a living trust is to avoid probate associated with using a will.

Question 73

A testamentary trust is created while the settlor is still alive.

Question 74

A living trust is a document that states which lifesaving measures the signor does and does not want.

Question 75

Who are the beneficiaries of a trust?

Question 76

In an inter vivos trust, the settlor transfers legal title of property to a named trustee to hold, administer, and manage for the benefit of named beneficiaries while he or she is alive.

Question 77

Which of the following is true of a living trust?

A) It comes in to effect after the death of the grantor.
B) It helps reduce the grantor's income tax.
C) It can be revoked during the grantor's lifetime.
D) It is considered a public record subject to probate proceedings.

Question 78

A ________ is created when a person deposits money in a bank account in his or her own name and holds it as a trustee for the benefit of another person.

A) resulting trust
B) Totten trust
C) spendthrift trust
D) testamentary trust

Question 79

A living trust is subject to property division on divorce.

Question 80

The person or entity to receive the trust corpus on the termination of the trust is called the remainder beneficiary.