Question 1

Patty,who is divorced,owns a house.She has no reasonable expectation of benefit from the life of Quinn,her ex-spouse,but she applies for insurance on his life anyway.She also obtains a fire insurance policy on the house,which she later sells.Five years later,Quinn dies and the house is destroyed in a fire.Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.

Accepted Answer

The answer of Patty,who is divorced,owns a house.She has no...

Question 2

Mason creates a trust to prevent his son,Newt,the beneficiary,from assigning his rights to future payments of income from the trust.This is

Accepted Answer

A spendthrift trust is designed to protect the beneficiary from his or her own poor judgement, by preventing him or her from assigning or pledging the right to receive payments from the trust. This type of trust is legal and commonly used in estate planning.

Question 3

Juli types onto a computer what she intends to be "My Will" and prints it out.Juli has capacity."My Will" is

Accepted Answer

The answer of Juli types onto a computer what she...

Question 4

Dieter's will provides for a distribution of his assets on his death.Who will "distribute" Dieter's property,and what are the steps involved?

Accepted Answer

The answer of Dieter's will provides for a distribution of...

Question 5

Orin creates a living trust to pass his assets,including stock in Petro Oil Company and other business investments,to his heirs.One advantage of this arrangement is that

Accepted Answer

One advantage of a living trust is that assets can be transferred without going through probate, which can be a time-consuming and costly process. This can save time and money for the heirs, and also provide more privacy as the distribution of assets does not become public record.

Question 6

Lani is asked to serve as a witness to Mona's will. To qualify,Lani must be

Accepted Answer

The answer of Lani is asked to serve as a...

Question 7

Ratzo is asked to be a witness to Sade's will.Before attesting to the will,

Accepted Answer

As a witness to the will, Ratzo is only required to sign to testify that he saw Sade sign the will and that Sade appeared to be of sound mind and body when signing it. Ratzo does not need to read the will or be informed of its contents.

Question 8

Kendall executes a separate written instrument to amend her prior will.This separate document is

Accepted Answer

A separate written instrument used to amend a prior will is called a codicil. A constructive will refers to a situation where the court creates a will for someone who has not created one themselves. An inter vivos will is a will that is created during the lifetime of the testator. A nuncupative will is an oral will, which is recognized in some states but not all.

Question 9

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

Accepted Answer

Dyan's writing separately to leave the stock to her niece Ginny and cash to Esau is a new testamentary document that revokes the previous gift of the stock to Esau in her will. Therefore, the will's gift of the stock to Esau is no longer valid.

Question 10

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Elsie divorce,but Don dies before changing his will.Under the Uniform Probate Code

Accepted Answer

The answer of Don executes a will leaving half of...

Question 11

Benny dies without a will,with no surviving spouse or child.Benny's survivors include his granddaughter Callie,his nephew Doug,and his cousin Earl.In most states,his estate would pass to

Accepted Answer

In the absence of a will and surviving spouse or child, Benny's estate would pass to his closest living relative, who in this case is his granddaughter Callie.

Question 12

Cliff dies without a will.His survivors include his spouse Dana and his two children,Efrem and Fay.Under applicable laws,Dana will probably receive

Accepted Answer

Without a will, Cliff's estate will be distributed according to the intestacy laws of the state. In this case, the most common scenario is that the surviving spouse (Dana) will receive one-third of the estate and the remaining two-thirds will be split equally between the two children (Efrem and Fay). Therefore, Dana will likely receive one-third of Cliff's estate.

Quiz 37: Insurance, wills, and Trusts