Question 1

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  False

Question 2

A trust is presumed to be irrevocable unless the grantor reserves the power of revocation.

Accepted Answer

A) True 
 B)False  True

Question 3

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  False

Question 4

Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself.

Accepted Answer

A) True 
 B)False

Question 5

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff. Even if the check is made out in the name of the attorney, it will belong to the client as a:

Accepted Answer

A)  resulting trust. 
B)  constructive trust. 
C)  totten trust. 
D)  spendthrift trust. 
A)  resulting trust. 
B)  constructive trust. 
C)  totten trust. 
D)  spendthrift trust.

Question 6

Which of the following will be acceptable as a witness to a will?

Accepted Answer

A)  The testator's spouse. 
B)  The administrator of the estate. 
C)  The beneficiary of a testamentary trust. 
D)  The spouse of a beneficiary. 
A)  The testator's spouse. 
B)  The administrator of the estate. 
C)  The beneficiary of a testamentary trust. 
D)  The spouse of a beneficiary.

Question 7

An express trust may be found if the intent of the grantor to create a trust is unmistakable.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Each trust has which of the following?

Accepted Answer

A)  Executor. 
B)  Corpus. 
C)  Testator. 
D)  All of these. 
A)  Executor. 
B)  Corpus. 
C)  Testator. 
D)  All of these.

Question 10

A minor's declaration of trust is voidable.

Accepted Answer

A) True 
 B)False

Question 11

A totten trust is revocable by the creator.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

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 15

Darrell executed a will fifteen years ago. Now he has changed his mind about how he wants his estate distributed and who he wants to appoint as executor. Discuss how Darrell may revoke his will.

Accepted Answer

A will is revocable by the testator, alt

Question 16

A trustee has a duty to make proper allocation of benefits and burdens between income beneficiaries and remaindermen. Which of the following statements is true concerning this allocation?

Accepted Answer

A)  Current expenses are chargeable to the remaindermen. 
B)  Extraordinary expenses are chargeable to the remaindermen. 
C)  Money paid for the use of trust property is chargeable to the remaindermen. 
D)  Any profit from the use of trust property is allocated to the remaindermen. 
A)  Current expenses are chargeable to the remaindermen. 
B)  Extraordinary expenses are chargeable to the remaindermen. 
C)  Money paid for the use of trust property is chargeable to the remaindermen. 
D)  Any profit from the use of trust property is allocated to the remaindermen.

Question 17

In 2000, 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 18

A totten trust involves a bank account opened by the settlor of the trust.

Accepted Answer

A) True 
 B)False

Question 19

A trust will fail for lack of:

Accepted Answer

A)  consideration. 
B)  a trustee. 
C)  definite and specific property forming the trust corpus. 
D)  All of these. 
A)  consideration. 
B)  a trustee. 
C)  definite and specific property forming the trust corpus. 
D)  All of these.

Question 20

A witness to a will who is "interested" will be disinherited or disqualified.

Accepted Answer

A) True 
 B)False

Exam 50: Trusts and Wills

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

A trust is presumed to be irrevocable unless the grantor reserves the power of revocation.

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.

Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself.

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff. Even if the check is made out in the name of the attorney, it will belong to the client as a:

Which of the following will be acceptable as a witness to a will?

An express trust may be found if the intent of the grantor to create a trust is unmistakable.

Almost all jurisdictions require that:

Each trust has which of the following?

A minor's declaration of trust is voidable.

A totten trust is revocable by the creator.

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

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

If a person dies intestate, his property will be:

Darrell executed a will fifteen years ago. Now he has changed his mind about how he wants his estate distributed and who he wants to appoint as executor. Discuss how Darrell may revoke his will.

A trustee has a duty to make proper allocation of benefits and burdens between income beneficiaries and remaindermen. Which of the following statements is true concerning this allocation?

A totten trust involves a bank account opened by the settlor of the trust.

A trust will fail for lack of:

A witness to a will who is "interested" will be disinherited or disqualified.

Introduction to Law

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