Deck 36: Estates and Trusts

Question 1

Life insurance proceeds are usually controlled by:

A) testamentary capacity.
B) the provisions of a will.
C) the insured's designation of beneficiaries.
D) the right of survivorship.

Answer 1

C
Explanation: Life insurance proceeds are usually controlled by the insured's designation of beneficiaries, not by any provision of a will. Wills do not control property that goes to others through other planning devices (such as life insurance policies) or by operation of law (such as by right of survivorship).

Question 2

A person could move in and out of periods of lucidity and still have testamentary capacity if she executed her will during a lucid period.

Answer 2

True

Question 3

A durable power of attorney terminates upon the incapacity of the principal.

Answer 3

False

Question 4

The rights of beneficiaries are superior to the rights of creditors under a will.

Question 5

While on his deathbed,Miguel's grandfather,Julio,revoked all his prior wills and wrote out a new will in his own handwriting,leaving everything to the local animal shelter in trust for his dog,Fido.Julio signed the will and mailed it to the animal shelter before he died.Miguel wants to challenge the new will.Which of the following statements is true?

A) Julio did not have the legal right to revoke his prior will without notice to Miguel and the other beneficiaries.
B) If Julio lacked the mental capacity to understand his actions, the new will is invalid.
C) Wills made on the deathbed cannot be lawfully executed, and Julio should have made the will before.
D) The will would be treated as valid only if Miguel had approved of the changes before Julio's death.

Question 6

A will proved by an affidavit sworn to and signed by the testator and the witnesses,at the time the will was executed,is called a self-proving affidavit.

Question 7

The same formalities are required for the creation of a valid codicil as for the creation of a valid will.

Question 8

A trustee owes a duty of loyalty to the beneficiaries.

Question 9

Intestacy statutes are designed to reflect the presumed intent of the deceased.

Question 10

Testamentary capacity refers to the:

A) legal capacity to make a valid will.
B) limit on how much property can be inherited by a given individual.
C) ability to give gifts to the testator's issues or descendants.
D) lack of awareness of the value of the property by the testator.

Question 11

A constructive trust is created by operation of law to avoid fraud,injustice,or unjust enrichment.

Question 12

A person who inherits property under a will takes the property free of all outstanding claims against the property.

Question 13

A charitable trust is not valid if no definitely ascertainable beneficiary is named and or if it is to continue for an indefinite or unlimited period.

Question 14

A joint will can never be revoked.

Question 15

Since a will can direct only property that is owned by the testator at the time of his death,a specific bequest of property that the testator has disposed of before his death is ineffective.This is called _____.

A) residuary
B) will devise
C) per stirpes
D) ademption

Question 16

If a person who is entitled to a share of the decedent's estate survives the decedent but dies before receiving her share,her share in the decedent's estate becomes part of her own estate.

Question 17

A person may amend his or her valid will by merely striking out objectionable provisions and inserting new provisions.

Question 18

A nuncupative will is a will that is written and signed in the testator's handwriting.

Question 19

Rasool and Kelly are married and have three children.Rasool and Kelly own their home together as tenants in the entirety.If Rasool dies intestate,under the laws of most states,who owns the home?

A) Kelly owns one-half and the children each own one-sixth share of the home.
B) Kelly and each of the children own one-fourth share of the home.
C) Each of the children owns one-third of the home.
D) Kelly owns the home by right of survivorship.

Question 20

Federal inheritance taxes are imposed on a person who receives a statutory share from an estate.

Question 21

Under the Patient Self-Determination Act,health care providers must:

A) provide oral information to adults receiving medical care about their rights to medical treatment.
B) document in the patient's medical record whether the patient has executed an advance directive.
C) ensure compliance with federal laws concerning codicils.
D) contact the patient's attorney for consenting or withholding consent to surgery.

Question 22

A nuncupative will:

A) is an oral will that is valid only under limited circumstances.
B) is valid only to transfer real property.
C) must be signed by the testator.
D) is valid only when made by soldiers or sailors.

Question 23

Which of the following is a formality usually required by state law for the creation of a valid will?

A) The will must be witnessed and signed by at least two persons who stand to inherit under the will.
B) Notice of the making of the will must be published in the newspaper.
C) The will must be signed by the testator or by someone else at the testator's direction.
D) The witnesses should declare, after the signing, that the instrument is the testator's will.

Question 24

Which of the following is an example of advance directives?

A) Intestacy
B) Codicil
C) Escheat
D) Living will

Question 25

If a person wants to make a change to their will,the person can do so by:

A) appearing in court.
B) executing a codicil.
C) posting a legal notice of the amendment.
D) striking out objectionable provisions in an existing will.

Question 26

At common law,which of the following is true of the right of a widow on a life estate?

A) The widow gets a one-third interest in fee simple, only in the real property owned by the testator during their marriage.
B) The widow has the right to a life estate in two-thirds of the lands owned by her husband at the time of his death.
C) The widow has the right to a life estate in half of the lands owned by her husband during their marriage.
D) The widow gets a one-third interest in fee simple in the real and personal property owned by her husband at the time of his death.

Question 27

A codicil is a(n):

A) amendment to a will.
B) automatic revocation of a will.
C) written document that lists future health care decisions for incapacitated individuals.
D) creditor's claim against the estate.

Question 28

Alma was suffering from a terminal disease.Because she distrusted attorneys,she wrote a statement in her own handwriting,labeling it "My Last Will and Testament." The statement contained a provision specifying that Alma wanted all of her property to go to her church upon her death.She signed the statement and stored it in her jewelry box,and she told her friend Willa of its location.When Alma died,Willa produced Alma's statement.Willa is now attempting to have the statement admitted to probate as Alma's will.Alma's grown children claim that Alma died intestate and that they should inherit her property.In this scenario,_____.

A) Alma's will is void and Willa will inherit her property
B) the church will inherit Alma's property if Alma's state recognizes holographic wills
C) Alma's children and the church will split Alma's property because Alma's will is nuncupative
D) the will may be declared void and the property will go to the state

Question 29

What makes holographic wills suspect?

A) They are not properly witnessed.
B) They are not written and signed in the testator's handwriting.
C) They are typed by the testator and signed by him or her.
D) They are oral wills.

Question 30

In terms of intestacy statutes,adopted children will:

A) inherit from their biological parents.
B) inherit from their adopted parents.
C) inherit from their adopted parents but a share lesser than the adopted parents' biological children.
D) not be able to inherit anything.

Question 31

Under the Uniform Simultaneous Death Act,if a husband and wife die under circumstances that make it difficult or impossible to determine who died first,_____.

A) the husband's property will go to his relatives and the wife's property to her relatives
B) the husband's property will automatically be distributed among his siblings
C) the wife's property will revert to the state
D) the entire property will automatically be distributed among the husband's relatives

Question 32

The execution of a will:

A) must strictly meet all the formalities required by state law, or it is void.
B) does not have to be in writing to be used to pass on property in normal circumstances.
C) must be published to be legal if the will is made orally.
D) requires that the will be witnessed by two or three interested witnesses.

Question 33

Under the doctrine of cy pres,when the settler has not specifically provided for a substitute beneficiary,the:

A) trust will automatically fail.
B) court will direct the application of the property to some charitable purpose that falls within the settlor's general charitable intention.
C) court will direct that the property be handed over to the government for administrative purposes.
D) original beneficiaries can use the property for a charitable purpose.

Question 34

When a person dies intestate,the property the person owns:

A) will be distributed to the people designated as the intestate's heirs.
B) will be considered public property and will be at the government's disposal.
C) escheats to the state.
D) will go to the biological children, not the adopted children.

Question 35

Which of the following is true of a joint will?

A) Whether a joint will is revocable depends only on the language of the will.
B) The mere fact that a joint will has been executed creates the presumption of a contract not to revoke the will.
C) Underlying a joint will is an agreement on a common plan.
D) A testator who has made a joint will cannot change the will later under any circumstances.

Question 36

Benny is the sole beneficiary of Paul's trust.In this trust,Benny can:

A) can also serve as the sole trustee.
B) cannot serve as the sole trustee.
C) cannot serve as a trustee or testator.
D) can serve as sole trustee during the trustor's lifetime.

Question 37

In the states that recognize holographic wills,such wills will be valid if:

A) they do not evidence testamentary intent.
B) they are in the handwriting of the testator.
C) the material portions in the will are typed.
D) they are typed and evidence testamentary intent.

Question 38

Domicile refers to a person's:

A) permanent home.
B) native town.
C) state, where he probates his will.
D) a person's necessity to make a particular state, home.

Question 39

Children who are born or adopted after a will has been executed are called:

A) presumptive heirs.
B) pretermitted children.
C) illegitimate children.
D) nuncupative heirs.

Question 40

Who among the following is responsible for supervision of administering a person's will and settling their estate?

A) An arbitrator
B) The attorney general
C) A Probate court
D) A Family court

Question 41

Abe deposits money in First Bank,in trust for his daughter,Esther.At Abe's death,if he has not revoked this trust,then the money in the account will:

A) belong to Esther.
B) be transferred to a charitable organization.
C) belong to the bank.
D) belong to the state and will be used for the benefit of the society.

Question 42

Define a constructive trust and the duty it imposes on the constructive trustee.

Question 43

Describe the responsibilities of a personal representative in the administration of an estate.

Question 44

Explain durable power of attorney for health care.

Question 45

Miriam established a trust by placing substantial funds in a trust account for the benefit of her son,Robert.Miriam appointed her brother,Fred,as trustee for the trust.In the trust document,she did not expressly define Fred's powers as trustee,or his duties.Under these circumstances,Fred _____.

A) must use a reasonable degree of skill, judgment, and care in the exercise of his duties
B) does not owe any fiduciary duty to the beneficiary
C) has the right to commingle his property with the property he holds in trust
D) is obligated to turn over the money to Robert at the earliest

Question 46

Which of the following is one of the requirements for forming an express trust?

A) The settlor need not necessarily attain the age required by state law for the creation of valid wills and contracts.
B) The trust cannot be created for a reason that is contrary to public policy.
C) The settler must name a trustee for the trust and a substitute trustee in the event the named trustee refuses to act.
D) The beneficiaries cannot be members of a specific class, such as "my children."

Question 47

Spendthrift clauses:

A) restrict the voluntary or involuntary transfer of a beneficiary's interest in a trust.
B) prevent creditors who have furnished necessaries from compelling payment.
C) enable a person to put their own property beyond the claims of their own creditors.
D) prevent divorced spouses from claiming alimony.

Question 48

What are the conditions under which holographic wills are recognized as valid?

Question 49

Name the basic formalities required by most states in the execution of a will.

Question 50

Which of the following creates a revocable living trust?

A) Doctrine of cy pres
B) Express trust
C) Spendthrift trust
D) Totten trust