Question 1

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

Accepted Answer

A living trust is created by the grantor (also known as the trust maker) during his or her lifetime. It allows the grantor to transfer ownership of assets into the trust and manage them as the trustee until his or her death, at which point the assets are distributed to the designated beneficiaries according to the terms of the trust.

Question 2

A divorce necessarily revokes an entire will.

Accepted Answer

A divorce does not automatically revoke a will in its entirety, but it may revoke any provisions relating to the former spouse. It is advisable to review and update a will after a divorce to ensure it reflects the individual's current wishes and circumstances.

Question 3

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

Accepted Answer

The answer of Per capita is a method of dividing...

Question 4

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

Accepted Answer

This is known as escheatment, where the state takes possession of the property when there are no living heirs or will to designate a beneficiary.

Question 5

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 6

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

Accepted Answer

This is true. When someone dies, any outstanding debts they have must be paid off with assets from their estate before they can be distributed to heirs or beneficiaries.

Question 7

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 her estate that remain after specific gifts and debts are paid are called the residuary.

Question 8

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, a court will typically appoint an administrator to manage the probate process. In this scenario, Nora has been appointed by the court to handle Maya's estate, making her the administrator of the estate. Maya, as the deceased individual, cannot serve as the administrator, and while her closest blood relative may have a claim to the estate, they would not automatically be appointed as the administrator without going through the appropriate legal channels. Therefore, the answer is C, Nora.

Question 9

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 10

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 many states in the United States have laws that grant surviving spouses a legal right to a portion of the deceased spouse's estate. This is commonly referred to as a "spousal share" or "elective share" and may vary by state. However, a married person may still have control over how the rest of their estate is distributed through their will.

Question 11

A resulting trust arises from the conduct of the parties.

Accepted Answer

A resulting trust is created when there is no express intention between parties, but the conduct of the parties implies an intention to create a trust.

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 and distributing the assets of the trust for the benefit of the beneficiaries.

Question 13

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 unable to pay all of the gifts outlined in his will, so the beneficiaries will receive reduced benefits. This means that the gifts will be distributed proportionally based on the available assets. For example, if Doug's estate only has enough assets to pay 50% of the gifts outlined in his will, then each beneficiary would receive 50% of their designated gift.

Question 14

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

Accepted Answer

A bequest and a legacy typically refer to gifts of personal property (such as money or jewelry) in a will, while a devise refers specifically to a gift of real property in a will. A residuary gift refers to whatever property remains after specific gifts have been distributed, and is not applicable in this scenario.

Question 15

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

Accepted Answer

A codicil is a document that modifies, but does not replace, an existing will. It is not related to an administrator's testamentary capacity.

Question 16

A testator may revoke a will by intentionally tearing it.

Accepted Answer

A testator may revoke a will by intentionally tearing it according to common law. However, it is recommended that a testator properly revoke a will by executing a new will or a codicil or by physically destroying the original will with the intention of revocation in the presence of witnesses.

Question 17

Once executed, a will cannot be revoked.

Accepted Answer

A will can be revoked by the testator at any time before their death, either by destroying the will or by making a new one that expressly revokes the old one.

Question 18

A will can be partially revoked.

Accepted Answer

A will can be partially revoked by making a codicil or a new will that invalidates or changes certain provisions of the original will without completely revoking it.

Question 19

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 is not created during the settlor's lifetime. It is a testamentary trust, which comes into existence upon the settlor's death and is irrevocable once it is created.

Question 20

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

Accepted Answer

Undue influence refers to the exertion of improper pressure or control on the testator (the person making the will) by someone who has a relationship of trust or confidence with the testator. This can include a named beneficiary who is in a position to influence the making of the will.

Quiz 31: Wills and Trusts