Question 1

A pretermitted heir may be protected by state laws which provide that the estate be treated as if it is intestate.

Accepted Answer

State laws may provide protection for pretermitted heirs by treating the estate as if it is intestate, which means that the pretermitted heir would have a right to a share of the estate. Pretermitted heirs are typically children or spouses who were unintentionally omitted from a decedent's will. State laws may provide protection for these heirs by treating the estate as if it is intestate (without a will), which can result in the pretermitted heir receiving a share of the estate equal to what they would have received if the decedent had died without a will.

Question 2

A durable power of attorney survives the incapacity but not the death of the principal.

Accepted Answer

A durable power of attorney continues even after the principal becomes incapacitated, but it becomes invalid upon the principal's death. A durable power of attorney allows the agent to continue providing the necessary services for the incapacitated principal even if they are unable to make decisions for themselves. However, the power of attorney ends upon the death of the principal.

Question 3

Testator's child predeceased him, but anti-lapse statutes may allow the child's share to pass to his next of kin rather than lapse.

Accepted Answer

Anti-lapse statutes generally provide that if a beneficiary dies before the testator, but is closely related to the testator, their share will pass to their descendants or next of kin instead of lapsing. Anti-lapse statutes provide that if a beneficiary dies before the testator, but is closely related to the testator, the gift will not lapse but will pass to the beneficiary's next of kin.

Question 4

A codicil directs end-of-life procedures and can be revoked as long as the person is capable of doing so.

Accepted Answer

A codicil is an amendment to a will, not a directive for end-of-life procedures. Documents that direct end-of-life procedures include living wills or advance healthcare directives, not codicils.

Question 5

Estate assets escheat to the state if the decedent has no surviving spouse or children.

Accepted Answer

The answer of Estate assets escheat to the state if...

Question 6

Which of the following statements about trusts is true?&#10;A)A trust is created by a trustee and appoints a settlor to administer the trust.&#10;B)A Marital Deduction Trust is utilized to disinherit a surviving spouse.&#10;C)The Rule against Perpetuities requires that an interest must vest, if at all, within 21 years (plus the period of gestation) after the life of a person or persons living at the time of the creation of a trust.&#10;D)A court may find a resulting trust for the benefit of a charity.

Accepted Answer

The Rule against Perpetuities is a common law rule that limits the duration of trusts and other property interests. It requires that an interest must vest, if at all, within a certain period of time after the creation of the trust, usually within 21 years plus the period of gestation. Options A, B, and D are incorrect as they contain incorrect information. The statement that is true about trusts is that the Rule against Perpetuities requires that an interest must vest, if at all, within 21 years (plus the period of gestation) after the life of a person or persons living at the time of the creation of a trust. The other statements are incorrect. A trust is created by a settlor and administered by a trustee, and a Marital Deduction Trust is not used to disinherit a surviving spouse. Additionally, a resulting trust is typically created when property is not properly transferred to a trust or when a trust terminates, and a court may find a resulting trust for the benefit of the settlor or his/her heirs, not a charity.

Question 7

The testator may name himself the trustee of a testamentary trust.

Accepted Answer

The answer of The testator may name himself the trustee...

Question 8

Before qualifying an individual for public assistance for long-term care, Medicaid will look back for five years to see if assets were transferred.

Accepted Answer

Medicaid has a 5-year look-back period to see if the applicant transferred assets in order to qualify for public assistance for long-term care. This is to prevent people from giving away their assets to family members or friends in order to qualify for Medicaid. Medicaid has a 5-year lookback period in which they review an applicant's financial transactions to determine if any assets were transferred or given away in an attempt to qualify for long-term care assistance.

Question 9

Which portion of a will is signed by the witnesses rather than the testator?&#10;A)Exordium clause&#10;B)Testimonium clause&#10;C)Residuary clause&#10;D)Attestation clause

Accepted Answer

The Attestation clause is the portion of a will that is signed by the witnesses rather than the testator. It usually begins with a statement that the testator signed the will in the presence of the witnesses and ends with the witnesses signing their names and providing their addresses. This clause is critical in proving the validity of the will in court. The Attestation clause is the portion of a will that is signed by witnesses and attests to the fact that the testator signed the will in their presence and was of sound mind and free from undue influence. The Exordium clause is the introductory sentence or statement of the will, the Testimonium clause identifies the testator and declares the will to be their last will and testament, and the Residuary clause distributes any remaining assets after specific bequests are made.

Question 10

A will that has been amended is known as a holographic will.

Accepted Answer

A holographic will is actually a will that is entirely handwritten and signed by the testator, but has not been witnessed. It is not a will that has been amended. A holographic will is a handwritten will that has not been amended or witnessed. If a handwritten will has been amended, it is called a codicil.

Question 11

A person who is the decedent's next of kin would have standing to contest a will on the grounds of undue influence because if the will is invalid the estate would pass to him.

Accepted Answer

The answer of A person who is the decedent's next...

Question 12

A holographic will is&#10;A)an amendment to a will&#10;B)a handwritten will without witnesses&#10;C)an oral will&#10;D)one which disinherits a child

Accepted Answer

The answer of A holographic will is&#10;A)an amendment to a...

Question 13

Most state statutes provide for surviving adult children to elect a share of the estate set out by law, often equal to a life share in one third of the estate.

Accepted Answer

The answer of Most state statutes provide for surviving adult...

Question 14

Changes can be made although tax avoidance and Medicaid eligibility may require an irrevocable trust.

Accepted Answer

The answer of Changes can be made although tax avoidance...

Question 15

A testamentary trust takes effect upon death; an inter vivos trust takes effect during the settlor's lifetime.&#10;Mutiple Choice.

Accepted Answer

The answer of A testamentary trust takes effect upon death;...

Question 16

Which document gives authority to an agent to act on behalf of an incompetent principal, but is not effective until that incapacity occurs?&#10;A)letter of instruction&#10;B)health care proxy&#10;C)springing power of attorney&#10;D)living will

Accepted Answer

The answer of Which document gives authority to an agent...

Question 17

What kind of trust is created to puts assets out of reach of creditors of a beneficiary?&#10;A)A QTIP trust&#10;B)A special needs trust&#10;C)A spendthrift trust&#10;D)A charitable trust

Accepted Answer

The answer of What kind of trust is created to...

Question 18

Inter vivos trusts are created during the the settlor's lifetime to take effect upon the settlor's death.

Accepted Answer

The answer of Inter vivos trusts are created during the...

Question 19

A person must have testamentary capacity at the time a will is submitted to probate.

Accepted Answer

The answer of A person must have testamentary capacity at...

Deck 8: Probate and Estate Planning