Question 1

Cliff dies without a will. His survivors include his spouse Dana and his two children, Efrem and Fay. Under applicable laws, Dana will probably receive

Accepted Answer

When someone dies without a will, they are said to have died intestate. The laws of intestacy in most states provide that the surviving spouse is entitled to a portion of the estate, although the amount varies depending on the state. In this case, since Cliff is survived by his spouse and two children, Dana will likely receive one-third of his estate, with the remaining two-thirds being divided equally between Efrem and Fay.

Question 2

Benny dies without a will, with no surviving spouse or child. Benny's survivors in?clude his granddaughter Callie, his nephew Duncan, and his cousin Earl. In most states, his estate would pass to

Accepted Answer

In most states, when an individual dies without a will or any surviving spouse or child, the estate would be passed down to the closest surviving relative(s) such as grandchildren, nieces/nephews, or cousins. In this scenario, Callie is Benny's only grandchild and therefore the closest surviving relative, making her the rightful heir to his estate.

Question 3

Dieter's will provides for a distribution of his assets on his death. Who will "distribute" Dieter's property, and what are the steps involved?

Accepted Answer

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

Question 4

Patty, who is divorced, owns a house. She has no reasonable expectation of benefit from the life of Quinn, her ex-spouse, but she applies for insur?ance on his life anyway. She also obtains a fire insurance policy on the house, which she later sells. Five years later, Quinn dies and the house is destroyed in a fire. Can Patty obtain payment on either the death of Quinn or the loss of the house? Explain.

Accepted Answer

The answer of Patty, who is divorced, owns a house....

Question 5

Sherman dies without a will, survived by his granddaughter Roxy and Roxy's brother Pio. Roxy and Pio are Sherman's

Accepted Answer

Roxy and Pio are lineal descendants of Sherman as they are his grandchildren.

Question 6

Dyan executes her will to give "to my nephew Esau my stock in Fargo, Inc." Later, Dyan writes separately, with the same formalities required for a will, to leave the stock to her niece Ginny and cash to Esau. This writing

Accepted Answer

The later written document revokes the gift of the stock to Esau in the original will, meaning that he no longer inherits it. It is possible that Esau may still inherit other items listed in the will or any other later written documents.

Question 7

Juli types onto a computer what she intends to be "My Will" and prints it out. Juli has capacity. "My Will" is

Accepted Answer

The answer of Juli types onto a computer what she...

Question 8

Lani is asked to serve as a witness to Mona's will. To qualify, Lani must be

Accepted Answer

The answer of Lani is asked to serve as a...

Question 9

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that

Accepted Answer

One advantage of a living trust is that the assets can be transferred directly to the beneficiaries without going through probate, which can be time-consuming and expensive. This can save the heirs a significant amount of time and money in the process of receiving their inheritance.

Question 10

Ratzo is asked to be a witness to Sade's will. Before attesting to the will,

Accepted Answer

Ratzo does not have to read the will or be informed of its contents before attesting to the will. As a witness, Ratzo's only responsibility is to confirm that Sade willingly and knowingly made the will and signed it in their presence.

Question 11

Amelia executes a separate written instrument to amend her prior will. This separate document is

Accepted Answer

A codicil is a separate written instrument that amends, modifies, or revokes a previously executed will. It is a legal document that must comply with the formalities required for a will, such as being in writing and signed by the testator and witnesses. A holographic will is a handwritten will made entirely by the testator without witnesses. A living will is a document that expresses a person's wishes regarding medical treatment if they are unable to make those decisions themselves. A nuncupative will is an oral will made before witnesses during a person's last illness, and it is only valid in limited circumstances.

Question 12

Mason creates a trust to prevent his son, Newt, the beneficiary, from assign?ing his rights to future payments of income from the trust. This is

Accepted Answer

A spendthrift trust is created to protect the beneficiary's interest from creditors. The beneficiary cannot assign their rights to future payments and the trustee has control over the distribution of funds to ensure the beneficiary's financial well-being.

Quiz 44: Insurance, Wills, and Trusts