Question 1

​A testator may revoke a will by intentionally tearing it.

Accepted Answer

A testator may revoke a will by intentionally tearing it. This is a valid way of revoking a will if the act of tearing is done intentionally and with the intention to revoke the will. However, it is always recommended to properly and legally revoke a will by executing a new will or a codicil.

Question 2

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

Accepted Answer

Per capita distribution means that each living descendant receives an equal share of the estate, as opposed to per stirpes, where the estate is divided according to the branch of the family.

Question 3

Maya dies without a will. A court appoints Nora to handle the probate of Maya's estate. The administrator of the estate is​

Accepted Answer

When someone dies without a will or other legal arrangements for the distribution of their assets, a court usually appoints an administrator or executor to handle the probate process. In this case, Nora has been appointed by the court to handle Maya's estate, making her the administrator. May's closest blood relative may have a claim to the estate, but they would not automatically be appointed as the administrator. Maya cannot be the administrator as she has passed away. The court is responsible for appointing an administrator, but it is not itself the administrator.

Question 4

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

Accepted Answer

A trust created by a will is not a living trust because it does not come into existence until the settlor's death. It is simply a testamentary trust. Additionally, a testamentary trust is not revocable because the settlor is deceased and cannot make changes to the terms of the trust.

Question 5

​The assets in Doug'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

Accepted Answer

Doug's estate is insufficient to cover all the gifts provided in his will, so the beneficiaries will have to receive reduced benefits. This means that each beneficiary will receive a portion of their gift according to the available assets in the estate. For example, if Doug's will stipulates that his two children are each to receive $50,000 from his estate, but there is only $75,000 in assets available, they will each receive only $37,500. This is called abatement and is a common occurrence when an estate does not have enough assets to fulfill all the gifts in a will. Option A is incorrect because seniority is not relevant in determining how assets are distributed in an estate. Option B is incorrect because the assets do not automatically pass to the state unless there are no heirs or beneficiaries named in the will. Option D is incorrect because the beneficiaries do not have the option of distributing the assets according to their wishes unless there is a provision in the will allowing for this.

Question 6

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

Accepted Answer

This is known as the "spousal share," and many states have laws in place that require a certain percentage or dollar amount of the estate to go to the surviving spouse regardless of what the will says.

Question 7

​A resulting trust arises from the conduct of the parties.

Accepted Answer

A resulting trust is based on the conduct of the parties involved. It arises when the legal owner of the property holds it for the benefit of someone else, but no express trust was created. The trust arises based on the conduct and intention of the parties involved.

Question 8

A trust that a grantor executes orally in contemplation of immediate death is a testamentary trust.

Accepted Answer

A trust executed orally in contemplation of immediate death is typically a "Totten trust" or "tentative trust," not a testamentary trust, which is created through a will.

Question 9

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

Accepted Answer

This concept is known as escheat, where the state becomes the owner of property when no heirs or beneficiaries are identified after a person dies without a will.

Question 10

​Rose makes out a will in which Steve is appointed to administer the will. After Rose dies, Steve cannot administer the will, and a court appoints Terry to handle the probate of the estate. In this situation, the executor is

Accepted Answer

The answer of ​Rose makes out a will in which...

Question 11

​A will can be partially revoked.

Accepted Answer

A will can be partially revoked by creating a codicil, which amends or revokes only certain provisions of the original will.

Question 12

​The trustee is the person who benefits from a trust.

Accepted Answer

The trustee is not the person who benefits from a trust. The trustee is responsible for managing the assets in the trust for the benefit of the beneficiaries. The beneficiaries are the ones who receive the benefits of the trust.

Question 13

​According to the terms of Donna's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of her estate that remain are

Accepted Answer

The assets of Donna's estate that remain after specific gifts, taxes, expenses, and debts are paid are known as the residuary estate. This includes any property or assets that were not specifically bequeathed or devised to a particular beneficiary. Therefore, the best choice is option D, the residuary.

Question 14

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

Accepted Answer

Undue influence is a factor that can lead to a will being contested and invalidated. It occurs when a person in a position of power or authority over the testator (the person making the will) exerts pressure or influence to have the will written in their favor. This can include situations where a named beneficiary, such as a caregiver or family member, uses their relationship with the testator to manipulate them into changing the will to benefit them.

Question 15

​A codicil is a clause in a will affirming an administrator's testamentary capacity.

Accepted Answer

A codicil is not a clause affirming an administrator's testamentary capacity. It is a separate document that modifies or amends a previously executed will.

Question 16

​Paul makes a gift of real estate in his will to Orly. This is

Accepted Answer

A bequest is a gift of personal property made in a will, while a devise is a gift of real property made in a will. A legacy is a gift of personal property made in a will that is payable from the general assets of the estate. A residuary is a gift of the remaining assets of an estate after all specific gifts have been distributed. Since Paul made a gift of real estate in his will, it qualifies as a devise.

Question 17

​A living trust is created by a grantor during his or her lifetime.

Accepted Answer

A living trust, also known as a revocable living trust or inter vivos trust, is created by the grantor during his or her lifetime. It allows the grantor to transfer his or her assets into the trust, manage them during his or her lifetime, and then distribute them to beneficiaries upon his or her death.

Question 18

​The debts of a decedent must be satisfied out of his or her estate.

Accepted Answer

This is true. Before any assets are distributed to beneficiaries, the debts of the decedent must be paid off using the assets from the estate.

Question 19

Once executed, a will cannot be revoked.

Accepted Answer

A will can be revoked by the person who made it at any time during their lifetime and before their death. A new will can also be made to supersede the previous one.

Question 20

​A divorce necessarily revokes an entire will.

Accepted Answer

A divorce only revokes the parts of a will that were designated for the former spouse. The rest of the will remains valid.

Quiz 51: Wills and Trusts

​A testator may revoke a will by intentionally tearing it.

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

Maya dies without a will. A court appoints Nora to handle the probate of Maya's estate. The administrator of the estate is​

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

​The assets in Doug'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 married person who makes a will generally cannot avoid leaving a certain portion of the estate to the surviving spouse.

​A resulting trust arises from the conduct of the parties.

A trust that a grantor executes orally in contemplation of immediate death is a testamentary trust.

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

​Rose makes out a will in which Steve is appointed to administer the will. After Rose dies, Steve cannot administer the will, and a court appoints Terry to handle the probate of the estate. In this situation, the executor is

​A will can be partially revoked.

​The trustee is the person who benefits from a trust.

​According to the terms of Donna's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of her estate that remain are

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

​A codicil is a clause in a will affirming an administrator's testamentary capacity.

​Paul makes a gift of real estate in his will to Orly. This is

​A living trust is created by a grantor during his or her lifetime.

​The debts of a decedent must be satisfied out of his or her estate.

Once executed, a will cannot be revoked.

​A divorce necessarily revokes an entire will.

A testator may revoke a will by intentionally tearing it.

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

The assets in Doug'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 married person who makes a will generally cannot avoid leaving a certain portion of the estate to the surviving spouse.

A resulting trust arises from the conduct of the parties.

Rose makes out a will in which Steve is appointed to administer the will. After Rose dies, Steve cannot administer the will, and a court appoints Terry to handle the probate of the estate. In this situation, the executor is

A will can be partially revoked.

The trustee is the person who benefits from a trust.

According to the terms of Donna's will, specific gifts are made, and taxes and other estate expenses and debts are paid. The assets of her estate that remain are

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

A codicil is a clause in a will affirming an administrator's testamentary capacity.

Paul makes a gift of real estate in his will to Orly. This is

A living trust is created by a grantor during his or her lifetime.

The debts of a decedent must be satisfied out of his or her estate.

A divorce necessarily revokes an entire will.