Question 1

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 to come into existence on the settlor's death is not an irrevocable living trust. It is a testamentary trust since it is created through a will and only becomes effective upon the death of the person who created it.

Question 2

A will can be partially revoked.

Accepted Answer

A will can be partially revoked by executing a new will that explicitly revokes only certain provisions of the previous will, or by physically destroying only the portion of the will that contains the revoked provisions.

Question 3

The trustee is the person who creates a trust.

Accepted Answer

The person who creates a trust is called a settlor or grantor. The trustee is the person or entity who manages the assets in the trust for the benefit of the beneficiaries.

Question 4

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

Accepted Answer

The assets of Ramona's estate that remain after specific gifts, taxes, expenses and debts are paid are known as the residuary estate. Therefore, option D, "the residuary," is the correct answer. Choices A, B, and C are all types of specific gifts and do not apply to the remaining assets of the estate.

Question 5

A resulting trust arises from the conduct of the parties.

Accepted Answer

A resulting trust is created by operation of law, as opposed to an express trust which is created through the intentional act of the parties. It arises when a person pays for property but does not take title to it. The law presumes that the person intended to create a trust for their benefit, and the property is held in trust by the recipient of the payment. The trust is "resulting" because it arises as a result of the conduct of the parties, rather than by express agreement.

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 because most states have laws that protect the surviving spouse's rights to a portion of the estate, known as the spousal elective share or statutory share. This ensures that the surviving spouse is not completely disinherited by the decedent's will.

Question 7

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

Accepted Answer

A living trust is also known as an inter vivos trust, meaning it is created during the lifetime of the grantor.

Question 8

Once executed,a will cannot be revoked.

Accepted Answer

A will can be revoked by the testator at any time before their death, provided they have the mental capacity to do so.

Question 9

Shea makes a will.As a person who makes a will,Shea is​

Accepted Answer

A person who makes a will is called a testator. The testator is the one who decides how their property and assets will be distributed after their death.

Question 10

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

Accepted Answer

The answer of A trust that a grantor executes orally...

Question 11

A divorce does not necessarily revoke an entire will.

Accepted Answer

While some states have laws that automatically revoke certain provisions of a will upon divorce, such as naming an ex-spouse as an executor or beneficiary, a divorce does not necessarily revoke the entire will. It is important to review and update your estate planning documents after a divorce to ensure your wishes are still accurately reflected.

Question 12

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

Accepted Answer

Per capita means "per head" in Latin and refers to a method of dividing an estate equally among beneficiaries at the same generational level regardless of their individual relationships to the deceased.

Question 13

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

Accepted Answer

A codicil is an addition or amendment to a will, not a clause affirming an administrator's testamentary capacity.

Question 14

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

Accepted Answer

When a person dies without a will, the court will appoint an administrator to handle the probate of the estate. In this case, Seth was appointed by the court to handle Raleigh's estate, so he is the administrator. Raleigh is deceased and cannot participate in the administration of the estate, and while a blood relative may inherit from the estate, they would not be automatically appointed as the administrator. Therefore, the correct answer is C.

Question 15

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

Accepted Answer

Undue influence can occur when a beneficiary has a position of power or trust over the testator and uses that position to influence the contents of the will.

Question 16

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

Accepted Answer

When a person dies without a valid will and no heirs or beneficiaries exist, the state will assume ownership of the property through a process called escheat.

Question 17

A testator may revoke a will by intentionally tearing it.

Accepted Answer

A testator may revoke a will by intentionally tearing it. This act is known as "tearing or destroying with the intention of revoking." It is recommended that the testator also sign and date the torn will to further indicate their intention to revoke it.

Question 18

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

Accepted Answer

The answer of Ross makes out a will in which...

Question 19

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

When the assets in an estate are insufficient to pay all of the gifts provided for in the will, the heirs will typically receive reduced benefits. This means that each beneficiary will receive a smaller portion of their originally designated gift. It is important for individuals creating a will to consider the value of their assets and to be realistic about the likelihood of being able to fully fund all of their intended gifts.

Question 20

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

Accepted Answer

This is a basic principle of estate law. Creditors have the right to pursue payment for outstanding debts from the assets of the estate before beneficiaries can receive anything. Only after debts have been paid can the remaining assets be distributed to heirs according to the decedent's will or state intestacy laws.

Quiz 39: Wills and Trusts