Question 1

Amy does not create a will before she dies.Amy dies with no heirs.Her property

Accepted Answer

When a person dies without a will and without any living heirs, their property (known as the "estate") escheats, meaning it goes to the state government. This is because there is no one to inherit the property, so the state takes ownership.

Question 2

Gus dies intestate.The debts of the estate are paid by

Accepted Answer

When someone dies intestate, meaning without a will, their assets and debts are distributed according to state law. The debts of the estate must be paid first, before any assets are distributed to heirs. Therefore, the correct option is B, which states that Gus's estate will pay the debts before distributing any assets.

Question 3

Eve dies intestate,survived by her grandson Boyd and her sister Grace. Boyd and Grace are Eve's

Accepted Answer

Lineal heirs are those who are directly descended from the deceased, such as children, grandchildren, great-grandchildren, etc. In this case, Boyd is Eve's grandson and therefore a lineal heir, while Grace is her sister and not a lineal heir.

Question 4

Kit has two children,Lea (the eldest) and Merl,both of whom prede?cease Kit.Lea is survived by a son,Nat,and Merl by two daughters,Opal and Pearl.On Kit's death,if the estate is distributed per capita

Accepted Answer

If the estate is distributed per capita, Lea, Merl, and Kit would each be considered a separate share of the estate. Lea's share would go entirely to her son Nat. Merl's share would be split equally between her two daughters, Opal and Pearl. Therefore, there would be three shares: Nat would receive one share, and Opal and Pearl would each receive half a share. This means each grandchild would receive one-third of the estate.

Question 5

Adam has two children,Bob (the eldest) and Carol,both of whom prede?cease Adam.Bob is survived by a daughter,Dina,and Carol by two sons,Ed and Fred.On Adam's death,if the estate is distributed per stirpes

Accepted Answer

The distribution per stirpes means that each branch of the family receives an equal share, and the share that would have gone to Bob and Carol is divided equally among their children. Bob's daughter, Dina, will receive one-half of the estate, and Carol's sons, Ed and Fred, will each receive one-fourth of the estate. Therefore, Dina will receive more than her cousins.

Question 6

Aron owns a certificate of deposit with Beth,his sister,and an apartment building with Carl,his brother,in both cases as a joint tenant.Aron,a partner with Debra in Aron & Debra Accountants,obtains a life insur?ance policy with Debra as the designated beneficiary.Aron writes a will that gives particular items of personal property,as well as specific amounts of cash,to his children and his friends.The will leaves the resi?due of the estate to Eve,Aaron's favorite cousin.Carl dies.Aron,on his deathbed,makes a gift to the United Way.Will the certificate of deposit,the apartment building,the proceeds from the life insurance policy,and the gift to the United Way become part of Aron's estate and be distributed under the will? If not,how will these items be distributed and to whom?

Accepted Answer

The answer of Aron owns a certificate of deposit with...

Question 7

Lee's will provides for a distribution of Lee's property.Who does these things,and what are the steps involved?

Accepted Answer

The answer of Lee's will provides for a distribution of...

Question 8

Don executes a will leaving half of his farm to his spouse Eva and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Eva divorce,but Don dies before changing his will.In these circumstances

Accepted Answer

In many jurisdictions, a divorce revokes any gifts to a former spouse in a will, so Eva would not inherit under the will. Therefore, Frank and Greg would inherit the entire estate in equal shares.

Question 9

Ann and Burt are partners in Delta Associates.Burt takes ad?vantage of a partnership opportunity for personal gain that causes Delta's business to suffer.A court orders Burt to hold the profits in trust for the partnership.This is

Accepted Answer

This is a case of constructive trust, as Burt is ordered to hold the profits in trust for the partnership due to his breach of fiduciary duty towards Delta Associates.

Question 10

Clayton dies without a will.The distribution of Clayton's property,including his farm near Lincoln,Nebraska,is prescribed by

Accepted Answer

When a person dies without a will, their property is distributed according to the state intestacy laws. Therefore, choice C is the correct answer. A court-appointed executor may be involved in the process, but they would follow the state intestacy laws. Federal probate statutes deal with issues related to federal estate taxes, which may be applied in certain situations, but do not govern the distribution of property. The degree of consanguinity between Clayton and his next of kin may be relevant in determining who inherits, but the actual distribution would still be based on the state intestacy laws.

Question 11

Edie holds title to Floyd's property under circumstances that,al?though nothing is express,indicate this is apparently only for Floyd's benefit.This is

Accepted Answer

This scenario describes a resulting trust, which is created by operation of law when a person holds legal title to property under circumstances that indicate it is not intended for their own benefit. This can arise in situations where it was intended for the property to be held in trust for someone else, but no formal trust agreement was established.

Question 12

Mason creates a trust for his son,Newt,the beneficiary,to come into existence on Mason's death.This is

Accepted Answer

A trust that comes into existence only upon the death of the creator is a testamentary trust. A living trust, on the other hand, is created during the lifetime of the creator. A constructive trust and a resulting trust are types of implied trusts that arise by operation of law under specific circumstances.

Quiz 40: Wills and Trusts