Deck 27: Wills, Intestacy, and Trusts

Question 1

If an executor is deceased, declines to serve, or is lacking in capacity, or if the decedent dies without making a will, the court will appoint a personal representative, known as a(n) _____________.

A) testator
B) administrator.
C) settlor
D) legacy.

Answer 1

B

Question 2

A formal, printed will needs to be signed only by the testator. Witnesses are not required for this purpose.

Answer 2

False

Question 3

Many wills include a statement that the testator is revoking all previous wills. Even without such a statement, the most recent will, if valid, automatically revokes all prior wills made by the testator.

Answer 3

True

Question 4

Undue influence describes the unreasonable pressure that might be applied to testators to change their true wishes for the disposition of property.

Question 5

A legacy or bequest can be residuary, when a will provides for the disposition of the balance of the estate.

Question 6

A trustee must manage the property according to the wishes of the settlor, who may be deceased.

Question 7

If a person dies intestate leaving a spouse but no children, the surviving spouse usually receives the entire estate.

Question 8

The intention of a decedent as expressed in a will is known as:

A) supplementary intent.
B) testamentary intent.
C) complimentary intent.
D) adversarial intent.

Question 9

Any alterations to a will, such as erasures, words crossed out, or handwritten insertions, usually constitute valid modifications of the will.

Question 10

A testamentary trust is created by an injunction issued by a court.

Question 11

A will must comply with legal requirements that are intended to ensure that the wishes of the testator are met and that there are no obstacles to the smooth transfer of the property.

Question 12

A person's written declaration of how he or she wishes property to be distributed upon his or her death is known as a:

A) gift.
B) will.
C) sale.
D) lease.

Question 13

A gift of personal property left to someone is known as a devise.

Question 14

A tape-recorded will is just as valid as a written will.

Question 15

A beneficiary does not receive gifts of personal or real property pursuant by will.

Question 16

The decedent's property cannot be converted into cash and applied to payment of burial, medical, taxes and legitimate debts.

Question 17

A person who makes a will is known as a(n):

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

Question 18

Much of early English law and tradition concerning wills and estates were intended to maintain a feudal system in which all land belonged to the:

A) king.
B) feudal lords.
C) businessmen.
D) priests.

Question 19

When a person dies, arrangements will first be made to pay his or her final expenses, such as the cost of an appropriate burial, medical expenses, taxes, and legitimate debts.

Question 20

The trustee may not purchase securities that are of very low risk and that appear on a document referred to as a legal list.

Question 21

One of the benefits of a trust is that it allows the legal title of property to be separated from the benefits of:

A) partnership.
B) ownership.
C) revocation.
D) enjoyment.

Question 22

A living trust. also known as a(n) ______________, is established while the person, (the settlor who wishes to set up the trust) is still alive.

A) holographic will
B) trustee's trust
C) holographic trust
D) inter vivos trust

Question 23

If it can be established that the testator lacked __________________, the will is:

A) consideration
B) testamentary capacity
C) undue influence
D) duress

Question 24

A formal printed will must be signed by the testator and:

A) executed.
B) scripted.
C) witnessed.
D) supplemented.

Question 25

The requirement that a testator must be of sound mind and legal age is known as:

A) testamentary intent.
B) restrictive intent.
C) restrictive capacity.
D) testamentary capacity.

Question 26

Changes in a will can be made in a separate document known as a:

A) revocation.
B) revision.
C) codicil.
D) trust.

Question 27

People who establish a trust while they are still alive are known as:

A) administrators.
B) executors.
C) settlors.
D) trustees.

Question 28

A living trust is also known as a(n):

A) testamentary trust.
B) contemporary trust.
C) inter vivos trust.
D) constructive trust.

Question 29

A gift of real property is known as a:

A) devise.
B) living trust.
C) codicil.
D) living will.

Question 30

When a person dies without a will, or had a will that failed to meet the requirements of the law, he or she is said to have died:

A) without heirs.
B) without distribution.
C) insolvent.
D) intestate.

Question 31

The responsibility of the trustee is that of a(n):

A) fiduciary.
B) executor.
C) administrator.
D) beneficiary.

Question 32

If no surviving heirs or ancestors of the deceased can be located, the decedent's property passes to the:

A) charitable trust.
B) siblings of the deceased.
C) friend or friends of the deceased.
D) state.

Question 33

The trustee may purchase securities that are of very low risk and that appear on a document referred to as a(n):

A) bargaining agreement list.
B) legal list.
C) covenant list.
D) arbitration list.

Question 34

A trust is a device or mechanism that permits personal or real property to be held by one party, the trustee, for the benefit of another, the:

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

Question 35

A trust made while a person is still alive is a(n):

A) living trust.
B) professional trust.
C) duty-of-care trust.
D) holographic trust.

Question 36

A will that is completely handwritten is a _____ will.

A) testamentary
B) holographic
C) scripted
D) residuary

Question 37

A codicil is prepared to:

A) execute a warranty deed.
B) execute a quit claim deed.
C) revoke, alter, or revise a will.
D) revoke, alter, or revise a gift causa mortis.

Question 38

Revocations by _____________ can include those that result from marriage or remarriage of the testator, divorce or annulment of a marriage, and the birth or adoption of children after the will was made, all of which can change the disposition of gifts.

A) operation of law
B) amendments of a will
C) restrictive covenants
D) arbitration agreements

Question 39

Appointment as a ______ should not be accepted unless one has the temperament, knowledge, and skills necessary to minimize the risks inherent in this position.

A) lessor
B) warrantor
C) trustee
D) mortgagor

Question 40

If a person dies without a will, generally the surviving spouse and children will receive:

A) 1/4 share of the property.
B) half of the property.
C) 3/4 share of the property.
D) the entire estate of the deceased.

Question 41

What are the requirements of a valid will?

Question 42

What is testamentary capacity and what is the result if it can be established that such was lacking?

Question 43

Distinguish between a testamentary trust and a living trust.