Exam 52: Wills and Trusts

A person may revoke a will by physically destroying it.

[Family Trust] Jasmine had made lots of money in the stock market. She was getting older and was concerned about the integrity of her children and grandchildren who seemed unwilling to work. She decided that she would place the majority of her money in a trust and instruct that it be distributed only to family members who were gainfully employed or attending school on a full-time basis throughout the next twenty years. The remainder of the trust at that time was to be given to a local animal shelter. She also told her lawyer, Bao, that although she was in good health and mind at the present time, she would like a document drawn up giving her daughter Erica the power to make decisions for her, including financial decisions, should her health deteriorate to the point that she could not handle her own affairs. -What type of trust did Jasmine set up to encourage her family members to go to school or work?

What is the term for a person, such as Mark, who writes a will?

Which of the following refers to a person's right to place limits on other people's efforts to prolong her or his life.

A witness to a will is said to ________ the will by acknowledging the testator's signature.

When someone dies, a[n] ________ chosen by the testator collects the testator's property, pays debts and taxes, and makes sure the remainder of the will is distributed.

A ________ is a will that two or more testators execute in which they leave property to each other as long as the survivor agrees that when he or she dies, the remaining property will be distributed according to a plan created by all testators.

[Bruiser] Samuel, a ninety-year-old wild bronco rider in the rodeo, had a will leaving all his possessions to a girlfriend, Winona, age twenty-two. During a rodeo, Samuel was placed on a particularly wild bronco named "Bruiser." During the ride, Crabby the clown yelled out to Samuel that Winona had suggested that particular horse. Samuel was annoyed about that because he was having trouble controlling Bruiser. Nevertheless, Samuel prevailed and collected the prize. Samuel was so excited that he had a heart attack. Just before he died, he yelled out, "Winona, you had me put on that crazy horse, and I'm revoking my will. I'm dying, and I'm leaving everything to my other girlfriend, Keisha." A number of witnesses heard his statement; and Crabby, who had always liked Keisha more than Winona, promptly wrote down Samuel's statement. Winona knew nothing about Keisha and was very upset. She told Keisha that Keisha could have nothing because Samuel's written will was still in effect. She also told Keisha that Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything. Samuel's daughter, Laura, age 65, also entered the discussion stating that Winona had unfairly coerced Samuel into writing a will leaving her everything. -Which of the following is a true statement regarding Winona's claim that Keisha was entitled to nothing because Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything?

Wills are ambulatory, which means what?

Melanie was helping take care of her dying grandmother. She persuaded her grandmother to change her will to leave everything to Melanie because she had spent so much time and effort taking care of her. If he grandmother changes her will based on Melanie's persuading her to do so, this is an example of ________.

Fraud occurs when a testator relies on ________ when making a will?

Which of the following is a false statement regarding trusts?

The term ________ covers a variety of legal instruments a person can use to express his or her wishes about efforts to prolong life.

[Will Formalities] Mark decided he wanted a will. Mark contacted Anthony, a reputable attorney with an expertise in estate planning. In their initial meeting, Mark described the property he owned and how he wished it to be distributed upon his death. Mark also specified his funeral arrangements. Anthony drew up the will and provided Mark with a draft. Mark made some minor revisions, which Anthony incorporated. Mark and Anthony went over the will one last time, in the presence of Anthony's administrative assistants, Stacy and Jason. Mark was satisfied with the will and signed it. Two years later, Mark wanted to revise his will to add his new wife, Karen. The document named Karen as the primary beneficiary instead of Mark's brother, John. Mark handwrote these provisions on a thin cutting board and labeled it "codicil," signed it, and attached it to his will. Mark unexpectedly dies and Karen and John dispute who should receive the majority of Mark's assets. -Which of the following statements is true regarding the codicil Mark drafted?

An implied trust is also called a[n] ________ trust.

Codicils are an entirely new will.

A testator must have ________, which means that the person must be old enough to write a will (age 18 in most states) and be of sound mind.

In order to determine death, surgeons in the U.S. use a heart-lung standard rather than a brain-death standard.

What does the term trust corpus refer to?

Belgina decided to destroy her will and burned it in a campfire. When she destroyed it, this is also known as ________ the will.