Question 1

Per capita means each heir gets an equal share of an estate.

Accepted Answer

A) True 
 B)False  True

Question 2

The Uniform Anatomical Gift Act (UAGA)allows an individual to indicate her desire to be a donor:

Accepted Answer

A)  by signing an organ donor card in the presence of two witnesses 
B)  by including this wish in a will 
C)  by using an iPhone app called "DonateLives." 
D)  all of the above are ways to indicate a desire to be an organ donor. 
A)  by signing an organ donor card in the presence of two witnesses 
B)  by including this wish in a will 
C)  by using an iPhone app called "DonateLives." 
D)  all of the above are ways to indicate a desire to be an organ donor. D

Question 3

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Accepted Answer

A) True 
 B)False  True

Question 4

Myron had two children,Cheryl and Pete,who predeceased him.Cheryl had three children and Pete had one child.Myron died testate.Which of the following is true?

Accepted Answer

A)  If Myron's will indicates that the issue are to inherit per stirpes,Pete's child will receive one half of Myron's estate. 
B)  If Myron's will indicates that the issue are to inherit per stirpes,Pete's child will receive one fourth of Myron's estate. 
C)  If Myron's will indicates that the issue are to inherit per capita,Pete's child will receive one half of Myron's estate. 
D)  If Myron's will indicates the issue are to inherit per capita,each of Cheryl's children will receive one sixth of Myron's estate. 
A)  If Myron's will indicates that the issue are to inherit per stirpes,Pete's child will receive one half of Myron's estate. 
B)  If Myron's will indicates that the issue are to inherit per stirpes,Pete's child will receive one fourth of Myron's estate. 
C)  If Myron's will indicates that the issue are to inherit per capita,Pete's child will receive one half of Myron's estate. 
D)  If Myron's will indicates the issue are to inherit per capita,each of Cheryl's children will receive one sixth of Myron's estate.

Question 5

In order to travel extensively and not worry about handling her affairs,Lee transfers most of her assets into a trust,with her bank serving as trustee.She has created:

Accepted Answer

A)  a travel trust. 
B)  a testamentary trust. 
C)  a constructive trust. 
D)  an inter vivos trust. 
A)  a travel trust. 
B)  a testamentary trust. 
C)  a constructive trust. 
D)  an inter vivos trust.

Question 6

Probate refers to the process of carrying out the terms of a will.

Accepted Answer

A) True 
 B)False

Question 7

Mountain Ridge Bank has been named trustee for a $100,000 trust Fred and Martha Betts established for "the living children of the grantors." List the requirements for establishing a trust.Identify the primary obligation of the trustee and discuss the fiduciary duty of the trustee.

Accepted Answer

There are four requirements for establis

Question 8

A major advantage of an Asset Protection Trust is:

Accepted Answer

A)  It is shielded from creditors that arise after the trust is established 
B)  Its proceeds are tax-free. 
C)  Its value cannot decline due to stock market fluctuations. 
D)  It has a guaranteed rate of return. 
A)  It is shielded from creditors that arise after the trust is established 
B)  Its proceeds are tax-free. 
C)  Its value cannot decline due to stock market fluctuations. 
D)  It has a guaranteed rate of return.

Question 9

Which of the following does not act as a revocation of a will?

Accepted Answer

A)  Destruction of the will by a house fire. 
B)  The testator's putting an X through it. 
C)  Physically destroying the will by intentionally shredding it. 
D)  Signing a new will that expressly revokes prior wills. 
A)  Destruction of the will by a house fire. 
B)  The testator's putting an X through it. 
C)  Physically destroying the will by intentionally shredding it. 
D)  Signing a new will that expressly revokes prior wills.

Question 10

Dr.Gavornne advises his very ill patients to prepare a living will.The purpose of a living will is:

Accepted Answer

A)  to make a disposition of property. 
B)  to express a desire not to have extreme medical treatment that would prolong their lives. 
C)  to transfer life insurance. 
D)  to consent to organ donation. 
A)  to make a disposition of property. 
B)  to express a desire not to have extreme medical treatment that would prolong their lives. 
C)  to transfer life insurance. 
D)  to consent to organ donation.

Question 11

Parents may not disinherit their minor children without good reason.

Accepted Answer

A) True 
 B)False

Question 12

A handwritten will is called a:

Accepted Answer

A)  holographic will. 
B)  living will. 
C)  probated will. 
D)  nuncupative will. 
A)  holographic will. 
B)  living will. 
C)  probated will. 
D)  nuncupative will.

Question 13

Through which of the following procedures can a person inherit?

Accepted Answer

A)  Will 
B)  Trust 
C)  Intestacy 
D)  All of the above. 
A)  Will 
B)  Trust 
C)  Intestacy 
D)  All of the above.

Question 14

Which statement is not true of trusts?

Accepted Answer

A)  Legal and beneficial ownership reside in the same entity 
B)  There are four parties involved: the grantor,the settlor,the donor and the beneficiary 
C)  A grantor can create a trust after her own death. 
D)  Trust documents are filed with the county court and are public documents. 
A)  Legal and beneficial ownership reside in the same entity 
B)  There are four parties involved: the grantor,the settlor,the donor and the beneficiary 
C)  A grantor can create a trust after her own death. 
D)  Trust documents are filed with the county court and are public documents.

Question 15

The only function of a will is to dispose of a person's property upon death.

Accepted Answer

A) True 
 B)False

Question 16

The percentage of people dying without a will is approximately:

Accepted Answer

A)  5%. 
B)  25%. 
C)  60%. 
D)  90%. 
A)  5%. 
B)  25%. 
C)  60%. 
D)  90%.

Question 17

Under the 2008 amendment to the UPC,a notarized will does not require any witnesses,but only four states have passed this amendment.

Accepted Answer

A) True 
 B)False

Question 18

Singleton,an eighty-year-old widower,remarried.The next day,he made a will leaving everything to his son,Joey.A week after his marriage,Singleton died.How will his estate be handled?

Accepted Answer

In a community property state,a spouse i

Question 19

The Uniform Probate Code has been adopted in all states.

Accepted Answer

A) True 
 B)False

Question 20

A trust that goes into effect during the grantor's lifetime is called:

Accepted Answer

A)  a testamentary trust 
B)  an anos durente trust 
C)  an irrevocable trust 
D)  an inter vivos trust 
A)  a testamentary trust 
B)  an anos durente trust 
C)  an irrevocable trust 
D)  an inter vivos trust

Exam 31: Estate Planning

Per capita means each heir gets an equal share of an estate.

The Uniform Anatomical Gift Act (UAGA)allows an individual to indicate her desire to be a donor:

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Myron had two children,Cheryl and Pete,who predeceased him.Cheryl had three children and Pete had one child.Myron died testate.Which of the following is true?

In order to travel extensively and not worry about handling her affairs,Lee transfers most of her assets into a trust,with her bank serving as trustee.She has created:

Probate refers to the process of carrying out the terms of a will.

Mountain Ridge Bank has been named trustee for a $100,000 trust Fred and Martha Betts established for "the living children of the grantors." List the requirements for establishing a trust.Identify the primary obligation of the trustee and discuss the fiduciary duty of the trustee.

A major advantage of an Asset Protection Trust is:

Which of the following does not act as a revocation of a will?

Dr.Gavornne advises his very ill patients to prepare a living will.The purpose of a living will is:

Parents may not disinherit their minor children without good reason.

A handwritten will is called a:

Through which of the following procedures can a person inherit?

Which statement is not true of trusts?

The only function of a will is to dispose of a person's property upon death.

The percentage of people dying without a will is approximately:

Under the 2008 amendment to the UPC,a notarized will does not require any witnesses,but only four states have passed this amendment.

Singleton,an eighty-year-old widower,remarried.The next day,he made a will leaving everything to his son,Joey.A week after his marriage,Singleton died.How will his estate be handled?

The Uniform Probate Code has been adopted in all states.

A trust that goes into effect during the grantor's lifetime is called:

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