Deck 51: Decedents Estates and Trusts

Question 1

In certain instances statutes provide that a change of circumstances, such as the marriage of a testator, has the effect of a revocation.

Answer 1

True

Question 2

A general legacy is a certain sum of money left by a testator to a named person.

Answer 2

True

Question 3

When specifically bequeathed property is sold or given away by the testator prior to death, the bequest is considered redeemed.

Answer 3

False

Question 4

A holographic will is an unwitnessed will that is written by the testator entirely by hand.

Question 5

When all the distributees stand in the same degree of relationship to the decedent, distribution is made per capita.

Question 6

A will, to be effective, always must be dated.

Question 7

The beneficiaries of a decedent are paid prior to debts.

Question 8

Eccentric behavior means that the testator cannot have testamentary capacity.

Question 9

Being 18 years of age automatically means one has testamentary capacity.

Question 10

A living will, now legal in most states, provides that if the testator becomes unable to express his or her wishes and is in an irreversible, incurable medical condition, he or she does not want life-sustaining medical treatments.

Question 11

A beneficiary of personal property by will may be called a devisee.

Question 12

One desiring to leave the balance of an estate to a specified person or group after specific bequests are satisfied may do so by making a residuary bequest in a will.

Question 13

Statutes often require that the attestation of witnesses be made in the presence of the testator and in the presence of each other.

Question 14

When a person dies with a will, usually the probate judge names who the administrator of the estate.

Question 15

Testamentary intent means the testator understands that certain persons will become the owners of certain property upon her death.

Question 16

If a trust is created to take effect within the lifetime of the settlor, it is a testamentary trust.

Question 17

A written will must be signed by the testator at the bottom or end of the will.

Question 18

A will cannot be modified by merely crossing out a clause and writing in something new.

Question 19

A will is very informal and may be created in any reasonable manner.

Question 20

When a decedent dies without a valid will he is said to have died testate.

Question 21

All of the following factors are required to show testamentary intent, except: __________.

A) The testator knows the exact value of his or her estate.
B) The testator understands the writing to be a will.
C) The testator has a reasonable appreciation of the identity of relatives and friends.
D) The testator has a reasonable appreciation of the extent of the property that may exist at death.

Question 22

When a testator provides for a bequest of his gold watch to his nephew, but the gold watch is not owned by the testator at the time of death: __________.

A) the nephew is entitled to an equivalent amount of cash.
B) the executor must purchase a similar gold watch for the nephew if funds are available.
C) the bequest to the nephew fails by ademption.
D) all legacies in the estate abate to provide funds to purchase a gold watch for the nephew.

Question 23

When a person is in an irreversible, incurable condition his ___________ gives instructions on 'heroic measures' and medical treatments if they become unable to express their wishes.

A) self proved will.
B) attestation clause.
C) holographic will.
D) living will.

Question 24

Every trust must have a beneficiary.

Question 25

Where a testatrix executes a will and later has a child: __________.

A) the child is prohibited by law from receiving anything from the estate.
B) many states hold that the will of the testatrix is partially revoked by operation of law to provide a share to the after-born child.
C) a new will must be executed because the birth voids the original will.
D) the after-born child takes a share by escheat.

Question 26

All of the following are correct statements concerning wills, except: __________.

A) Attestation is the act of witnessing the execution of a will.
B) Most states require two (2) witnesses to the execution of the will.
C) A will must be dated.
D) Self-proved wills are wills that carry a presumption that they are valid if executed according to the requirements set forth by statute.

Question 27

A trustee can delegate the performance of personal duties.

Question 28

A failure by the settlor to name a trustee renders a trust invalid.

Question 29

When property is transferred to a trust, the trustee has legal title and the beneficiary has equitable title.

Question 30

A will may be contested on any of the following grounds except: __________.

A) lack of mental capacity of the testator.
B) undue influence, duress, or mistake.
C) forgery.
D) appointment of a personal representative.

Question 31

Suppose Bob dies intestate leaving Dina, his a widow, and two children, Ed and Fred, with five grandchildren. If the estate is distributed per stirpes: __________.

A) Dina will receive the entire estate.
B) Dina will receive one-half of the estate, and Ed and Fred will each receive one-fourth.
C) Dina will receive one-half, and the grandchildren will receive the other half.
D) the grandchildren will receive one-fifth of Ed and Fred's shares.

Question 32

A trustee may keep all matters associated with the trust secret.

Question 33

A trust is invalid if a beneficiary lacks capacity.

Question 34

An individual who desires to make provisions that will be effective only on her death is said to have: _______.

A) probationary intent.
B) a prejudicial interest.
C) testamentary intent.
D) attestation intent.

Question 35

A gift of personal property by will is called a(n) _________, and the beneficiary is called a(n) _________.

A) bequest, devisee
B) legacy, legatee
C) devise, devisee
D) legacy, devisee.

Question 36

A trustee cannot make decisions on matters that could not be foreseen by the settlor.

Question 37

If Bruce's will states, "I give my condo in Boise, Idaho to my sister Carolyn Harwood" he is giving her __________.

A) a general bequest.
B) an ademption.
C) a residuary.
D) a specific devise.

Question 38

A trust may be terminated by its own terms.

Question 39

A trustee is not permitted to profit personally from the position of trustee, other than to receive the compensation allowed by contract or law.

Question 40

The requirements to create a trust are uniform.

Question 41

The relatives of an individual who dies without a valid will may acquire title to the decedent's property through: __________.

A) intestate succession.
B) the right of replevin.
C) testate succession.
D) the right of acquisition.

Question 42

State intestacy statutes commonly provide for distribution in the following order: __________.

A) spouse, parents, lineals, collateral heirs.
B) spouse, lineals, collateral heirs, parents.
C) spouse, lineals, parents, collateral heirs.
D) spouse, lineals, collateral heirs, parents.

Question 43

Which of the following is an incorrect statement concerning trusts?

A) The trustee has legal title to the corpus.
B) The beneficiary has equitable title to or beneficial interest in the corpus.
C) Generally, a beneficiary may not transfer his or her interest in the trust.
D) A trustee cannot delegate the performance of personal duties.

Question 44

A decedent's transfer of $10,000 to a trustee, to be held in trust for A, will fail to create a valid trust if: __________.

A) it was not supported by consideration.
B) the trustee lacks capacity.
C) A is not a family member of the decedent.
D) the trustee had no opportunity to renounce the trust.

Question 45

Which of the following is not a duty of a trustee?

A) to use reasonable skill
B) to keep accurate records
C) to invest trust assets
D) to deliver possession of trust assets to the settlor for the trust period

Question 46

If the trustee breaches the trust, which of the following remedies is not available?

A) a money judgment
B) an injunction
C) a criminal prosecution
D) revocation of the trust by the settlor

Question 47

Tuttle died at age 96, leaving a will that she made at age 40 that provided that her three children would share her estate equally. At the time of her death, only one child, Anna, was living. Tuttle's two deceased children, Bill and Caroline, each had two children who were living at the time of Tuttle's death. Anna is claiming that she is entitled to the entire estate because the bequests to Bill and Caroline lapsed upon their deaths prior to Tuttle's death. How will the estate be settled?

Question 48

A trust can be terminated in any of the following manners, except: _______.

A) by its own terms
B) by impossibility of attaining the object of the trust
C) by revocation of the trust by the settlor
D) by a money judgment against the trustee

Question 49

Margo had only one son, and her husband had predeceased her. The son was reckless and extravagant, but Margo loved him dearly. She left all her property to a trustee in trust for her son and provided that the trust was a spendthrift trust. Margo further provided that the income from the trust was to be paid to her son quarterly until he reached the age of 30 at which time the full trust corpus was to be paid over to him. After Margo's death and before the son had reached the age of 30, the son signed a contract that purported to transfer the entire trust corpus to a finance company. The son was paid for this. The son had also run up many unpaid bills on which he was sued and judgments entered against him. The finance company and the other judgment creditors are seeking to compel the trustee to turn over the trust corpus to them. Decide.

Question 50

In order for a trust to be created, who must be able to hold legal title?

A) the beneficiary only
B) the trustee only
C) either the beneficiary or the trustee
D) both the beneficiary and the trustee

Question 51

Fred and Mary were married. Fred had executed a will prior to the marriage that left all of his property, both real and personal, to his mother. Fred later died without changing his will. Mary feels that she should be entitled to some of Fred's estate. While waiting for Fred's estate to be finalized, Mary remarries. Mary's second husband executes a will providing for Mary. Later, after Mary and her husband adopt two children, her second husband dies. Mary feels that her children should be entitled to receive something from her second husband's estate. Is Mary and, later, are her adopted children entitled to receive something under the wills?

Question 52

When distributees stand in different degrees of relationship: __________.

A) distribution is made per stirpes.
B) distribution is made per capita.
C) a distribution cannot be made without the consent of the state.
D) the right of escheat applies.

Question 53

A bequest of a pearl necklace is a: __________.

A) general legacy.
B) specific legacy.
C) specific ademption.
D) residuary ademption.