Deck 30: Settling an Estate

Question 1

What is a key step in the settling of an estate?

A) Filing a bond
B) Filing an inventory
C) Making out tax returns
D) All of the above

Answer 1

All of the above

Question 2

What is the last key step in the settling of an estate?

A) Paying debts and expenses of administration
B) Filing an account with the court
C) Making distribution of the assets of the estate
D) Petitioning the court for appointment

Answer 2

Filing an account with the court

Question 3

If the decedent died intestate, who can petition the court for appointment as administrator of the estate?

A) One or more of the heirs
B) Next of kin
C) Creditors
D) All of the above

Answer 3

All of the above

Question 4

What term describes people who would have inherited had the decedent died intestate?

A) Heirs at law
B) Legal heirs
C) Lawful heirs
D) Heirs by justice

Question 5

What is a way of giving a notice of a hearing on the petition?

A) Service of process
B) Mail
C) Newspaper publication
D) All of the above

Question 6

What legal document establishes a way for giving a notice of a hearing on the petition?

A) Administrative regulation
B) State constitution
C) State statute
D) Ordinance

Question 7

Who is a fiduciary?

A) Executor
B) Administrator
C) All of the above
D) None of the above

Question 8

If the value of the personal property of the estate is $50,000, what would be the amount of the fiduciary's bond?

A) $10,000
B) $50,000
C) $70,000
D) $100,000

Question 9

What is a fiduciary's bond?

A) Promise by a fiduciary to pay the amount of the bond to the probate judge if the representative's duties are not diligently performed
B) Specific performance
C) Estate's inventory
D) Forbearance

Question 10

What term describes a certificate of appointment issued by the court to the personal representative of an intestate estate?

A) Letters of administration
B) Letters of supervision
C) Letters judicial
D) Letters of management

Question 11

What is included in an estate's inventory?

A) List of the estate's assets
B) Appraised value of the estate's assets
C) All of the above
D) None of the above

Question 12

What term describes gifts made within three years of the date of death?

A) Gifts causa mortis
B) Gifts made in contemplation of death
C) All of the above
D) None of the above

Question 13

What term describes all property that the decedent owned at death?

A) Total estate
B) Gross estate
C) Totality of estate
D) Entirety of estate

Question 14

When the donor dies, who pays gift tax due?

A) Donees
B) Heirs
C) Heirs at law
D) Tax is collected from the donor's estate

Question 15

What gifts are subject to federal gift tax?

A) Gifts made during one's lifetime
B) Gifts that total more than $5.45 million
C) All of the above
D) None of the above

Question 16

What term describes a tax imposed on the estate?

A) Estate tax
B) State death tax
C) Domain tax
D) Legacy tax

Question 17

What term describes a tax soaking up money for the state that the estate is being given credit for in any event?

A) Beneficial tax
B) Sponge tax
C) Helpful tax
D) Useful tax

Question 18

What is a ground to contest a will?

A) Testator disinherited some relatives
B) Testator divided his or her estate's assets unequally among heirs
C) Testator left all his or her estate to an art museum
D) Testator made the will due to the influence of a personal accountant

Question 19

What term describes a person offering a will for probate?

A) Petitioner
B) Promisor
C) Proponent
D) Promisee

Question 20

Estate settlement is a process involving several key steps.

Question 21

An estate's personal representative always distributes the estate's assets before paying the estate's debts.

Question 22

If the decedent died intestate, his or her relatives may petition the court for appointment as the estate's administrator.

Question 23

Notice of a hearing on the petition for the allowance of the will is given to all interested parties.

Question 24

A person can inherit only if he or she is included in someone's will.

Question 25

In California, the judge signs a "decree for probate."

Question 26

The amount of the probate's bond depends on the value of the decedent's personal property.

Question 27

The key question for estate taxes is whether an estate is big enough to qualify for being taxed.

Question 28

In 2010, the federal estate tax disappeared altogether.

Question 29

A federal gift tax is imposed on all gifts made during a donor's lifetime.

Question 30

Gift taxes are never collected from the donor's estate when the donor dies.

Question 31

All states impose their own death taxes.

Question 32

Some states impose an estate tax equal to the credit allowed for state death taxes on the federal estate tax return.

Question 33

Filing an account with the court is the last step in settling an estate.

Question 34

A will may be contested on any ground if the plaintiff has standing to sue.

Question 35

Petitioning the court for ________ is a step in estate settlement.

Question 36

If the decedent died testate, the executor named in the will petitions the court for the ________ of the will.

Question 37

A person inheriting property from a decedent's estate is called a(n) ________.

Question 38

People standing behind the personal representative of estate in case that he or she fails to perform the task are called ________.

Question 39

A fiduciary must file a ________ with the court.

Question 40

A tax imposed on the estate of a deceased person is called a(n) ________tax.

Question 41

Gifts made within three years of the date of death are presumed to be made in ________ of death.

Question 42

A sum of money that is used to offset what is owed in taxes is called a tax ________.

Question 43

A tax imposed on a person who inherits from a decedent's estate is called ________ tax.

Question 44

A will may be contested on the ground that the testator was of ________ mind.

Question 45

Match the terms with their descriptions:

-Burden of proof

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 46

Match the terms with their descriptions:

-Decree

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 47

Match the terms with their descriptions:

-Fiduciary

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 48

Match the terms with their descriptions:

-Filing a bond

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 49

Match the terms with their descriptions:

-Proponent of the will

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 50

Match the terms with their descriptions:

-Estate tax

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 51

Match the terms with their descriptions:

-Tax credit

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 52

Match the terms with their descriptions:

-Heirs at law

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 53

Match the terms with their descriptions:

-Sureties

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 54

Match the terms with their descriptions:

-Inheritance tax

A) Tax imposed on a person inheriting from a decedent's estate
B) Sum of money that is used to offset what is owed in taxes
C) People who would have inherited had the decedent died intestate
D) People standing behind the personal representative in the event that he or she fails to do the job
E) Person offering the will for probate
F) Person holding a position of trust
G) Decision of a court of equity
H) Duty of proving a fact
I) Tax imposed on the estate of a deceased person
J) Key step in estate settlement

Question 55

Identify the key steps in settling an estate.

Question 56

Define and discuss the federal gift tax.

Question 57

Define a will contest and a proponent. Discuss who can contest a will and on what grounds. Identify who has the burden of proof in a will contest.

Question 58

When Georgia died, her property included the following: a house in Florida owned individually, a house in Arizona owned jointly with Sandy, an antic cars collection, and life insurance. During her lifetime, she made several gifts: 10 years before her death, she presented her niece a diamond ring; 7 years before her death she presented her brother an antic car, and 2 years before her death she presented her daughter a boat. Identify on what property will be imposed the federal estate tax.

Question 59

In his will, Tom left all his assets to the university and $1.5 million to Andy, his old friend and the university's president. Suzan offered Tom's will for probate. Tom's daughter Ashley, disinherited under the will, contested it claiming that the will has been executed through the use of undue influence by Andy. Constance, a legatee under a previous will, but now left out of it, also contested the will claiming that Tom was of unsound mind. Discuss who will have the burden of proof in this will contest.