Exam 51: Wills and Trusts

A Totten trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.

The testator's signature must appear on the will.

Lieko wants to put some money in trust for her daughter Mari, but she does not want to lose full control over the funds in case she may need them in the future. One trust suited to Lieko's needs is

A testator may revoke a will by intentionally tearing it.

The property of a decedent escheats to his or her designated heirs.

Dalmira dies without a will. A court appoints Estee to handle the probate of Dalmira's estate. Dalmira's closest blood relative is Farnham. The administrator of the estate is

A gift of real estate by will is generally called a bequest.

According to the terms of Diego's will, specific gifts are made, and taxes and other es?tate expenses and debts are paid. The assets of Diego's estate that remain are most likely to be distributed

A will can serve no other purpose besides the distribution of property.

A power of attorney is usually limited to a specific context, such as negotiating a deal with a buyer.

Ingrid is the trustee of a trust in which Jens has a life estate and Karin has the remainder interest. The trust property is a farm. The farm is leased to Lars, who pays the rent to the trust. Property taxes are paid annually on the farm. Long-term improvements are occasionally made and paid for. A section of the farm's land is sold to Margo, one of the farm's neigh?bors. How are the payments for taxes and improvements classified (ordi?nary or extraordinary)? How are the receipts of rent and the pro?ceeds from the land sale classified? To whom are these costs and benefits allocated?

Finnegan dies without a will, with no surviving spouse or child. Finnegan's survivors in?clude his grandson Gallagher, his niece Hailey, and his cousin Innis. In most states, his estate would pass to

Rica is asked to be a witness to Sade's will. Before attesting to the will,

Demetri's will provides for a distribution of his assets-including cash, jewelry, household goods, bank accounts, investments, a home, a vacation condominium, and other personal and real property-on his death. Who "distributes" this property, and what are the steps involved?

Jade signs an advance health directive that states what medical treatment may be used after a serious accident or illness. She indicates that she wants certain lifesaving procedures to be undertaken unless the treatment will not result in a reasonable quality of life. This is

Gary dies without a will. His survivors include his spouse Helen and his two children, Irene and John. Under applicable laws, of Gary's estate, Helen will probably receive

Raphaelle employs a variety of will substitutes to transfer her assets, which consist principally of cash and investments in mutual funds, outside the probate process. In this situation, the most important consideration is to

Mason creates a trust to prevent his son, Newt, the beneficiary, from assign?ing his rights to future payments of income from the trust. This is

Hamid makes a will leaving a specific sum of money to each surviving rela?tive. The assets of Hamid's estate are not enough to make all of the gifts in full. This situation requires

A valid will is one that represents the maker's intention to transfer and distribute his or her property.