Question 1

Which of the following may invalidate a will?

Accepted Answer

A)  Duress. 
B)  Undue influence. 
C)  Fraud. 
D)  All of these may invalidate a will. 
A)  Duress. 
B)  Undue influence. 
C)  Fraud. 
D)  All of these may invalidate a will. D

Question 2

The characteristics of a spendthrift trust include which of the following?

Accepted Answer

A)  Spendthrift provisions are not valid in most states. 
B)  Trust creditors can never seize income from a spendthrift trust. 
C)  A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income. 
D)  All of these. 
A)  Spendthrift provisions are not valid in most states. 
B)  Trust creditors can never seize income from a spendthrift trust. 
C)  A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income. 
D)  All of these. C

Question 3

A trust for the dissemination of a particular political doctrine cannot be a charitable trust.

Accepted Answer

A) True 
 B)False  False

Question 4

An express trust is a trust:

Accepted Answer

A)  established by law through the courts when the parties' conduct warrant the creation of a trust. 
B)  established by voluntary action and evidenced by a written document or oral statement. 
C)  created only by an oral statement. 
D)  created only by a written expression. 
A)  established by law through the courts when the parties' conduct warrant the creation of a trust. 
B)  established by voluntary action and evidenced by a written document or oral statement. 
C)  created only by an oral statement. 
D)  created only by a written expression.

Question 5

Clarence is the trustee of a trust. With $75,000 of his own money, Clarence purchases a parcel of real estate. Two months later, he sells the parcel to the trust for $150,000 and pockets the profit. Discuss the situation in terms of the duties and powers of the trustee.

Accepted Answer

Clarence has breached his fiduciary duty

Question 6

A person's written statement that he is leaving property "to Margaret in full confidence and with hope she will take care of Tina" is too indefinite to create a trust.

Accepted Answer

A) True 
 B)False

Question 7

If a will was burned in an electrical fire that destroyed the testator's home, it will be presumed to be revoked.

Accepted Answer

A) True 
 B)False

Question 8

In 2016, Boyd created a trust that would become effective on his death. In the trust instrument, Boyd specified that all of the income from his stocks and bonds be used for the benefit of St. John's Hospital and indicated that his brother Chad should administer the trust. 
a. What kind of trust is this? 
b. What is Boyd with relationship to the trust? 
c. What is the corpus of the trust? 
d. What is Chad with relationship to the trust?

Accepted Answer

a. This is a testamentary char

Question 9

All of the following may, in general, revoke a will by operation of law EXCEPT:

Accepted Answer

A)  subsequent marriage. 
B)  subsequent divorce. 
C)  birth of a child. 
D)  all of these will revoke a will by operation of law. 
A)  subsequent marriage. 
B)  subsequent divorce. 
C)  birth of a child. 
D)  all of these will revoke a will by operation of law.

Question 10

Almost all jurisdictions require that:

Accepted Answer

A)  express trusts of real property be in writing. 
B)  trusts have at least four witnesses. 
C)  an inter vivos trust have at least two trustees. 
D)  a charitable trust have at least two trustees. 
A)  express trusts of real property be in writing. 
B)  trusts have at least four witnesses. 
C)  an inter vivos trust have at least two trustees. 
D)  a charitable trust have at least two trustees.

Question 11

The duties of a trustee are:

Accepted Answer

A)  to carry out the purposes of the trust. 
B)  to act with prudence and care in the administration of the trust. 
C)  to exercise a high degree of loyalty toward the beneficiary. 
D)  All of these. 
A)  to carry out the purposes of the trust. 
B)  to act with prudence and care in the administration of the trust. 
C)  to exercise a high degree of loyalty toward the beneficiary. 
D)  All of these.

Question 12

Constructive trusts are generally found where the creator clearly intended a trust to be formed.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements about wills is correct?

Accepted Answer

A)  A will must be written on one piece of paper. 
B)  Another writing may be incorporated by reference into a will. 
C)  The testator must sign his or her full name. 
D)  The testator cannot have any "help" in signing a will. 
A)  A will must be written on one piece of paper. 
B)  Another writing may be incorporated by reference into a will. 
C)  The testator must sign his or her full name. 
D)  The testator cannot have any "help" in signing a will.

Question 14

The owner of legal title to the property in a trust is the:

Accepted Answer

A)  grantor. 
B)  settlor. 
C)  beneficiary. 
D)  trustee. 
A)  grantor. 
B)  settlor. 
C)  beneficiary. 
D)  trustee.

Question 15

If a person dies intestate, his property will be:

Accepted Answer

A)  given to his beneficiaries. 
B)  passed to his children. 
C)  kept by the state. 
D)  distributed as prescribed by the state. 
A)  given to his beneficiaries. 
B)  passed to his children. 
C)  kept by the state. 
D)  distributed as prescribed by the state.

Question 16

A totten trust is irrevocable, even by the creator.

Accepted Answer

A) True 
 B)False

Question 17

Dan, a widower, dies intestate. He leaves two surviving children, Joe and Carrie, and two grandchildren who are children of his deceased daughter, Debra. If Joe and Carrie each take one-third of his estate and the grandchildren each take one-sixth of the estate, this is described legally by the statement that:

Accepted Answer

A)  lineal descendants of predeceased children take property per stirpes . 
B)  lineal descendants take the property per capita . 
C)  collateral heirs take the property per stirpes . 
D)  lineal descendants and collateral heirs take the property per capita . 
A)  lineal descendants of predeceased children take property per stirpes . 
B)  lineal descendants take the property per capita . 
C)  collateral heirs take the property per stirpes . 
D)  lineal descendants and collateral heirs take the property per capita .

Question 18

A totten trust may also be referred to as a savings account trust.

Accepted Answer

A) True 
 B)False

Question 19

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

Accepted Answer

A) True 
 B)False

Question 20

A trust for the establishment and maintenance of a museum would be a charitable trust.

Accepted Answer

A) True 
 B)False

Exam 50: Trusts and Wills

Which of the following may invalidate a will?

The characteristics of a spendthrift trust include which of the following?

A trust for the dissemination of a particular political doctrine cannot be a charitable trust.

An express trust is a trust:

Clarence is the trustee of a trust. With $75,000 of his own money, Clarence purchases a parcel of real estate. Two months later, he sells the parcel to the trust for $150,000 and pockets the profit. Discuss the situation in terms of the duties and powers of the trustee.

A person's written statement that he is leaving property "to Margaret in full confidence and with hope she will take care of Tina" is too indefinite to create a trust.

If a will was burned in an electrical fire that destroyed the testator's home, it will be presumed to be revoked.

All of the following may, in general, revoke a will by operation of law EXCEPT:

Almost all jurisdictions require that:

The duties of a trustee are:

Constructive trusts are generally found where the creator clearly intended a trust to be formed.

Which of the following statements about wills is correct?

The owner of legal title to the property in a trust is the:

If a person dies intestate, his property will be:

A totten trust is irrevocable, even by the creator.

A totten trust may also be referred to as a savings account trust.

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

A trust for the establishment and maintenance of a museum would be a charitable trust.

Introduction to Law

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Civil Dispute Resolution

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Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

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Third Parties to Contracts

Performance Breach and Discharge

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Product Liability Warranties and Strict Liability

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Transfer and Holder in Due Course

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Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

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Formation and Internal Relations of General Partnerships

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Nature and Formation of Corporations

Financial Structure of Corporations

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Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

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Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

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