Question 1

A trust created and operational during the lifetime of the settler is called a(n)______________trust and if it can be dissolved is called _____________and if it cannot be it is called _______________.

Accepted Answer

The answer of A trust created and operational during the...

Question 2

A failure to provide for a child can partially revoke a will.The protected child who challenges the distribution is a(n).

Accepted Answer

The answer of A failure to provide for a child...

Question 3

State laws that regulate how property shall be distributed when a resident of the state dies without leaving a will are called laws.

Accepted Answer

The answer of State laws that regulate how property shall...

Question 4

Fred wishes to donate money to several charities through his will but in unsure how much each should receive.So Fred donates a fixed sum of money,identifies the charities and names and empowers his good friend Wilkins McCawber to determine the amount each charity is to receive.Wilkins has received a(n).

Accepted Answer

The answer of Fred wishes to donate money to several...

Question 5

Cecil was working on his tractor,he mistakenly put it in reverse and was pinned by the tractor.Fearful that he might not live through this experience,he used his jack knife (pocket knife)to etch in the fender of the tractor this message."In case I die in this mess,I leave all to the wife.If Cecil dies his wife through a proceeding will try to prove the tractor fender is a

Accepted Answer

The answer of Cecil was working on his tractor,he mistakenly...

Question 6

The person who creates a trust is called a(n)

Accepted Answer

The person who creates a trust is called a settlor or trustor. The beneficiary is the person or entity for whom the trust is created, the trustee is the person or entity responsible for managing and distributing the trust assets, and an executor or administrator is responsible for managing the estate of a deceased person.

Question 7

If you create a will,

Accepted Answer

Creating a will does not avoid probate, as the will must be probated in order for its instructions to be carried out. A will is not necessarily irrevocable once created, as it can be amended or revoked by the creator at any time before their death. While a will can help with estate planning, it does not necessarily reduce or eliminate estate taxes. Therefore, none of the given choices are correct.

Question 8

The person subject to a guardianship is called a(n).The person in charge of
the ward's personal and financial affairs is called the .

Accepted Answer

The answer of The person subject to a guardianship is...

Question 9

Among the advantages of writing a will is

Accepted Answer

Writing a will allows the testator to specify how their property will be distributed after their death, ensuring that their wishes are carried out. It does not necessarily avoid death taxes, eliminate the need for a personal representative, or prevent probate, but it can simplify the process and potentially reduce costs associated with these.

Question 10

Which of the following is to be eliminated in the year 2010?

Accepted Answer

Federal estate taxes were not completely eliminated but were significantly reduced in 2010 and have remained at that reduced level since then. Probate, state inheritance taxes, and state income taxes were not eliminated in 2010.

Question 11

A living will is sometimes called a(n)

Accepted Answer

A living will is also known as a directive to physicians. It is a legal document that specifies a person's preferences regarding medical treatment in case they become incapacitated and cannot express their wishes. This document is used to guide health care providers and family members in making decisions about the person's medical care.

Question 12

Legal duties of an executor include all of the following except

Accepted Answer

While extending sympathy and comforting the bereaved may be a kind and socially appropriate gesture, it is not a legal duty of an executor. The other options listed are legal duties of an executor, including notifying heirs and beneficiaries, paying debts and safekeeping income of the estate, and preparing a final accounting report for court review.

Question 13

Probate has some advantages over procedures that avoid probate.Which of the following is an advantage of probate?

Accepted Answer

Probate provides an effective method of settling outstanding claims against the deceased person's estate. During probate, creditors are given a chance to file claims against the estate, and those claims must be paid before the remaining assets can be distributed to the heirs. This ensures that all debts and obligations are settled before distribution, giving peace of mind to the heirs.

Question 14

Those legally entitled to your estate if you leave no will are called .

Accepted Answer

The answer of Those legally entitled to your estate if...

Question 15

To celebrate their 25th wedding anniversary,Juan and Maria Fuentes created a trust transferring more than $250,000 worth of real property to Capitol Trust Company for the benefit of the River City University scholarship program.They did not retain any right to a return of the property.They created a(n)

Accepted Answer

Juan and Maria created an irrevocable trust, meaning they cannot change their minds and take the property back. Additionally, it was created during their lifetime and not through a will, making it an inter-vivos trust.

Question 16

Usual costs of a testamentary trust include

Accepted Answer

The usual costs of a testamentary trust include will preparation fees, future trustee's fees, and future probate fees. These costs can vary depending on the complexity of the trust and the assets involved.

Question 17

Mary Banks died without leaving a will.Surviving her were her parents Carl and Sheila,her husband Willie,and her minor children,Tabatha and Kaillie.Regarding the distribution of her estate,

Accepted Answer

When a person dies without leaving a will, the distribution of their property is governed by the law of intestate succession in their state. This means that the property will be distributed according to a set of rules that prioritize certain relatives, such as spouses and children. Therefore, choice C is the correct answer. Choices A, B and D are incorrect because they provide inaccurate information about the distribution of property in the absence of a will.

Question 18

A(n)may be created to provide for a minor whose parents are dead.

Accepted Answer

The answer of A(n)may be created to provide for a...

Question 19

An effective estate plan should include

Accepted Answer

An effective estate plan should include a will and a letter of last instructions. This ensures that the planner's assets are distributed according to their wishes, and that their loved ones have instructions for any other matters such as funeral arrangements or the handling of personal items. Choices A, B, and D are not necessary components of an estate plan.

Question 20

When an elderly person is senile and/or physically unable to handle his/her own finances and other affairs,a close relative,such as a son or daughter,may petition a court to

Accepted Answer

The best choice is to declare a conservatorship with the elderly person as conservatee. This allows a court to appoint a responsible person, such as a family member or professional fiduciary, to manage the elderly person's finances, medical decisions, and other affairs on his/her behalf. This ensures that the elderly person's needs are taken care of and protected, while also providing legal oversight and accountability for the appointed conservator. The other choices are not appropriate for these situations.

Quiz 14: Wills, Trusts, and Probate Laws Appendices Glossary Indexes

A trust created and operational during the lifetime of the settler is called a(n)________trust and if it can be dissolved is called _and if it cannot be it is called _________.