Question 1

An express trust is a trust:

Accepted Answer

An express trust is a trust that is established by voluntary action, represented by a written document, oral statements, or the conduct of the settlor. It is not established by law through the court, so option A is incorrect. Option D is incorrect because option A is incorrect. Therefore, the best choice is E, mentioning both voluntary actions and representation through a document, statements or conduct.

Question 2

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 3

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

Accepted Answer

The trustee holds the legal title to the property in a trust, meaning they have the formal ownership and responsibility to manage the property according to the trust's terms for the benefit of the beneficiaries.

Question 4

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

Accepted Answer

The executor or administrator is appointed to manage the assets and debts of the estate and has a fiduciary duty to act in the best interest of the beneficiaries and creditors.

Question 5

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

A resulting trust is created when one person transfers property to another person, but it is clear from the circumstances that the transfer was not intended to make a gift. In this case, the defendant's check was intended to settle the lawsuit and compensate the plaintiff, not to make a gift to the attorney. Therefore, the check belongs to the client as a resulting trust.

Question 6

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

Accepted Answer

A trust that is established for a charitable purpose, such as the establishment and maintenance of a museum, is considered a charitable trust. Charitable trusts are intended to benefit the public or a specific group of people and are eligible for tax-exempt status.

Question 7

Taxes imposed at death include:

Accepted Answer

Taxes imposed at death include all three options: income tax on income received during estate administration, federal estate tax on property transfer, and state inheritance tax on the privilege of an heir or beneficiary to receive the property.

Question 8

If a person dies intestate,his property will be:

Accepted Answer

When a person dies intestate, meaning without a will, the distribution of their property will be governed by state laws. Each state has specific laws regarding how a person's estate will be distributed without a will. In general, the property will be distributed to the closest living relatives, such as children, spouse or parents, in a predetermined order. Therefore, the best choice is D, which states that the property will be distributed as prescribed by the state.

Question 9

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...

Question 10

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

Accepted Answer

A totten trust, also known as a payable-on-death (POD) account, is a bank account opened by the settlor of the trust with the intention of designating a beneficiary to receive the funds in the account upon the settlor's death.

Question 11

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

Accepted Answer

The court may require witnesses to provide testimony and/or sign a sworn affidavit confirming their signatures on the will in order to validate it.

Question 12

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

Accepted Answer

A will entirely in the handwriting of the testator is called a holographic will.

Question 13

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

The formalities of a will, such as proper execution and witnessing, must be followed in order for a will to be valid even if the decedent's wishes are clear. Failure to meet the formalities can result in the will being declared invalid in court.

Question 14

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

According to the scenario given, Rayshawn was a witness to Samuel's will but died before him. In such a case, proof of Rayshawn's handwriting is necessary for probating Samuel's will unless there are enough other witnesses to meet the statutory requirements without Rayshawn.

Question 15

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

Accepted Answer

Consideration is not required to create a trust. A trust can be created simply by the intention of the settlor (creator of the trust), the trust property, and the designation of a beneficiary. Legal capacity is necessary for the settlor to create a trust, specific property must be designated to be held in trust, and there must be a beneficiary designated to receive the benefits of the trust.

Question 16

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

Accepted Answer

Intestacy statutes typically only include biological or legally adopted children as inheritors, not stepchildren.

Question 17

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 18

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 19

Once a trust is validly created,it is revocable.

Accepted Answer

The answer of Once a trust is validly created,it is...

Question 20

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

Accepted Answer

A totten trust is a type of bank account that designates a beneficiary to receive the funds upon the account holder's death. It is also commonly called a savings account trust.

Quiz 50: Trusts and Wills