Question 1

A photocopy of a will or a will written in pencil would not be valid for probate.

Accepted Answer

The validity of a will for probate purposes depends on the laws of the jurisdiction in which it is being probated. Some jurisdictions may accept a photocopy of a will or a will written in pencil if certain conditions are met, such as evidence of the decedent's intent and signatures of witnesses.

Question 2

A trust for the establishment and maintenance of a museum would be a charitable trust.

Accepted Answer

A trust for the establishment and maintenance of a museum would be considered a charitable trust as museums serve educational and cultural purposes, which are generally considered charitable purposes. The trust would need to follow the legal requirements for charitable trusts, such as having a charitable purpose, being for the public benefit, and not benefiting any individual or private organization.

Question 3

A will entirely in the handwriting of the testator is called what type of will?

Accepted Answer

A holographic will is one that is entirely written, dated, and signed in the handwriting of the testator.

Question 4

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

Accepted Answer

The executor or administrator of an estate does occupy a fiduciary relationship with regard to the estate, as they have a legal obligation to act in the best interests of the estate and its beneficiaries.

Question 5

A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted.

Accepted Answer

A stepchild is not considered a legal heir under intestacy laws unless they have been legally adopted by the stepparent.

Question 6

Once a trust is validly created, it is revocable.

Accepted Answer

Once a trust is validly created, it is not revocable unless the trust document specifically grants the grantor the power to revoke or amend the trust.

Question 7

A totten trust involves a bank account opened by the settlor of the trust.

Accepted Answer

The totten trust, also known as a payable-on-death (POD) account, is a type of informal trust that can be set up by opening a bank account in which the account owner designates a beneficiary to receive the account's balance upon their death. The settlor of the trust is the account owner who opens the account.

Question 8

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.

Accepted Answer

In order for a court to issue a formal decree allowing the will, witnesses' signatures must be proven. This is typically done through a process called witness testimony or an affidavit confirming the witnesses' signatures.

Question 9

As long as a decedent's wishes are clear, the formalities of a will need not be strictly met in order for the will to be valid.

Accepted Answer

This statement is false. In most jurisdictions, there are specific formalities that must be met in order for a will to be considered valid, including the requirement that the will be in writing, signed by the testator (the person making the will), and witnessed by at least two witnesses who are not named beneficiaries in the will. Failure to meet these formalities can result in the will being declared invalid.

Question 10

Rayshawn served as a witness to Samuel's will, but died before Samuel. When Samuel's will is probated, proof of Rayshawn's handwriting is necessary unless there are enough other witnesses to meet the statutory requirements without Rayshawn.

Accepted Answer

If a witness to a will dies before the testator, their handwriting may need to be proven during probate unless there are enough other witnesses to satisfy legal requirements.

Question 11

Of the following elements, which one is NOT required to create an enforceable trust?

Accepted Answer

Consideration is not required to create an enforceable trust. The creation of a trust requires a legal capacity, specific property, and at least one beneficiary. Consideration refers to something of value that is given in exchange for a promise, and is typically required to form a contract. However, a trust is not a contract and does not require consideration.

Question 12

Divorce or marriage will result in a revocation of a will.

Accepted Answer

Divorce or marriage does not automatically revoke a will, but it can significantly alter the effects of the will. For example, in many jurisdictions, divorce may nullify provisions in favor of a former spouse, but the will itself remains valid. Marriage might also not revoke a will, but laws often protect the new spouse from being entirely disinherited. The specifics can vary by jurisdiction.

Question 13

If a person dies intestate, his property will be:

Accepted Answer

If a person dies intestate (without a will), his property will be distributed according to the laws of the state in which he lived. This means that the state will determine who the heirs are and how the property will be divided among them. In some cases, the state may take possession of the property if there are no heirs or if the heirs cannot be located. Therefore, the property will be distributed as prescribed by the state.

Question 14

Taxes imposed at death include:

Accepted Answer

All of the options listed are taxes that may be imposed at the time of death. The estate may have to pay income tax on any income received while the estate is being administered. The federal government may impose an estate tax on the transfer of property at death. Additionally, some states may have an inheritance tax imposed on the privilege of an heir or beneficiary to receive the property.

Question 15

An express trust is a trust:

Accepted Answer

An express trust is created by voluntary action, typically through a written document or verbal declaration. It is not established by law through the courts, and it must have some form of clear communication of the trust's terms and beneficiaries. An oral statement alone is typically not sufficient to create a trust, although it may serve as evidence of the trust's creation in certain circumstances. Therefore, the correct answer is B.

Question 16

The owner of legal title to the property in a trust is the:

Accepted Answer

The trustee is the owner of legal title to the property in a trust. The settlor (or grantor) creates the trust and transfers the property into it, while the beneficiary is the party who benefits from the trust. However, legal ownership and control of the property is held by the trustee.

Question 17

A totten trust may also be referred to as a savings account trust.

Accepted Answer

A totten trust, also known as a payable-on-death or POD trust, is a type of savings account trust in which the account owner designates one or more beneficiaries who will receive the funds upon the owner's death.

Question 18

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff. Even if the check is made out in the name of the attorney, it will belong to the client as a:

Accepted Answer

The check belongs to the client because it is payment for the settlement of a lawsuit brought by the client. Therefore, the attorney holds the funds in trust for the client, and a resulting trust arises.

Question 19

A completely handwritten will is valid only if witnessed.

Accepted Answer

A completely handwritten will, known as a holographic will, is considered valid in some jurisdictions without the need for witnesses, as long as it is written, dated, and signed entirely in the handwriting of the person making the will (testator).

Question 20

Renunciation is a statutory right of a surviving spouse to give up her statutory share in the estate.

Accepted Answer

The answer of Renunciation is a statutory right of a...

Quiz 50: Trusts and Wills