Question 1

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

Accepted Answer

A spendthrift trust is designed to limit the beneficiary's ability to transfer or assign their interest in the trust to creditors or anyone else. This is often done to protect the beneficiary's assets from being seized by creditors. In this case, Mason wants to prevent his son from assigning his rights to future payments of income from the trust, which is exactly what a spendthrift trust is designed to do.

Question 2

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 known as a codicil. It is essentially a supplement to the original will and allows the testator to make minor changes or additions without having to rewrite the entire will.

Question 3

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

Accepted Answer

The answer of Benny dies without a will,with no surviving...

Question 4

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

Accepted Answer

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

Question 5

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 6

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

Accepted Answer

The question specifically states that Ratzo is asked to be a witness to the will, not a beneficiary or executor. As a witness, Ratzo's role is only to attest to the fact that Sade signed the will and that she appeared to be of sound mind and not under duress. Ratzo is not required to read or know the contents of the will.

Question 7

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 insur?ance 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 8

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 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

By writing a separate document with the same formalities required for a will to give the stock to her niece Ginny, Dyan has effectively revoked the original will's gift of the stock to her nephew Esau. This is because the later will, being executed for the same property, operates as a revocation of the prior will to the extent of any inconsistent provisions.

Question 10

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 creating a living trust is that it allows for the transfer of assets to beneficiaries without the requirement of going through probate. This can save time and money compared to the probate process, which can be lengthy and expensive. However, it is important to note that the specific benefits and drawbacks of a living trust will vary depending on the individual's circumstances and the specific provisions included in the trust agreement.

Question 11

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 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 30: Insurance, wills, and Trusts