Question 1

A trust that a grantor executes orally in contemplation of imme?diate death is a testamentary trust.

Accepted Answer

A) True 
 B)False  False

Question 2

Aaron owns a certificate of deposit with Beth,his sister,and an apart?ment building with Carl,his brother,in both cases as a joint tenant.Aaron,a partner with Debra in Aaron & Debra Accountants,obtains a life insurance policy with Debra as the designated beneficiary.Aaron writes a will that gives particular items of personal property,as well as specific amounts of cash,to his children and his friends.The will leaves the residue of the estate to Eve,Aaron's favorite cousin.Carl dies.Aaron,on his own deathbed,makes a gift to the United Way.Will the certificate of deposit,the apartment building,the proceeds from the life insurance policy,and the gift to the United Way become part of Aaron's estate and be distributed under the will? If not,how will these items be distributed and to whom?

Accepted Answer

Of the items listed in the question,only the apartment build?ing will become part of Aaron's estate and be distributed in accor?dance with his will.When property is owned in joint tenancy,each joint tenant has a right of survivorship,which means that if a joint tenant dies,the survivor becomes the sole owner of the property.Because Aaron owned the apartment building in joint tenancy with his brother,and the brother predeceased him,Aaron became the sole owner.As such,Aaron could transfer the property in any way he wished.The apartment build?ing passes under the will,because,unlike the other items in this ques?tion,no other disposition for it was made.The interest in the certificate of deposit,which Aaron and his sister Beth held as joint tenants,passes to Beth,who survives Aaron.The gift that Aaron made to the United Way on his deathbed is effective and thus would not become part of Aaron's estate.The proceeds of the life insurance policy would pass to Debra,the benefi?ciary,without becoming part of the estate.
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NAT: AACSB Reflective AICPA Decision Modeling

Question 3

A divorce necessarily revokes an entire will.

Accepted Answer

A) True 
 B)False  False

Question 4

Before dying from injuries suffered in a fall from a horse,Inez tells her cousin Juana that on her death,Lysander is to be given possession of Inez's Rancho Mirage.In most states,this oral "will" would be

Accepted Answer

A) not permitted. 
B) permitted. 
C) solid. 
D) valid. 
A) not permitted. 
B) permitted. 
C) solid. 
D) valid.

Question 5

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

Accepted Answer

A) Ratzo does not have to read the will or be informed of its contents. 
B) Ratzo must read the will and recite its contents. 
C) Sade must orally tell Ratzo of the will's contents. 
D) Sade's attorney must read the will aloud to Ratzo. 
A) Ratzo does not have to read the will or be informed of its contents. 
B) Ratzo must read the will and recite its contents. 
C) Sade must orally tell Ratzo of the will's contents. 
D) Sade's attorney must read the will aloud to Ratzo.

Question 6

A nuncupative will is a will that is completely in the handwriting of the testator.

Accepted Answer

A) True 
 B)False

Question 7

Brick executes a will,telling the witnesses that the document they are about to sign is his "last will and testament." After Brick's death,the will is ad?mitted for probate.Cecily,his lawyer,reads the will to his heirs.The pub?lication of the will is

Accepted Answer

A) Brick's declaration to the witnesses. 
B) Brick's execution of the will. 
C) Cecily's reading of the will to Brick's heirs. 
D) the admission of the will for probate. 
A) Brick's declaration to the witnesses. 
B) Brick's execution of the will. 
C) Cecily's reading of the will to Brick's heirs. 
D) the admission of the will for probate.

Question 8

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Elsie divorce,but Don dies before changing his will.Under the Uniform Probate Code

Accepted Answer

A) Elsie receives half of the farm,and Frank and Greg share the rest. 
B) Elsie receives half of the farm,and Frank,Greg,and Hal share the rest. 
C) Frank and Greg receive the entire estate in equal shares. 
D) the state inherits the entire estate. 
A) Elsie receives half of the farm,and Frank and Greg share the rest. 
B) Elsie receives half of the farm,and Frank,Greg,and Hal share the rest. 
C) Frank and Greg receive the entire estate in equal shares. 
D) the state inherits the entire estate.

Question 9

Skyler dies after having made a valid will.Skyler has died

Accepted Answer

A) in escheat. 
B) in probate. 
C) intestate. 
D) testate. 
A) in escheat. 
B) in probate. 
C) intestate. 
D) testate.

Question 10

Travis's will states,"I give to my brother Ubi my gold pocket watch." This is

Accepted Answer

A) a general legacy. 
B) a residuary. 
C) a specific bequest. 
D) a specific devise. 
A) a general legacy. 
B) a residuary. 
C) a specific bequest. 
D) a specific devise.

Question 11

Grey has two children,Ham (the eldest)and Ivy,both of whom prede?cease Grey.Ham is survived by a daughter,Jess,and Ivy by two sons,Kato and Lars.On Grey's death,if the estate is distributed per stirpes

Accepted Answer

A) each grandchild receives one-third of the estate. 
B) Jess receives one-half of the estate,and Kato and Lars each receive one-fourth. 
C) Jess receives the entire estate. 
D) the grandchildren receive nothing. 
A) each grandchild receives one-third of the estate. 
B) Jess receives one-half of the estate,and Kato and Lars each receive one-fourth. 
C) Jess receives the entire estate. 
D) the grandchildren receive nothing.

Question 12

In a spendthrift trust,a beneficiary can transfer his or her right to the trust's principal if the transfer is "thrifty."

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) by codicil. 
B) holographically. 
C) per capita. 
D) through a residuary clause. 
A) by codicil. 
B) holographically. 
C) per capita. 
D) through a residuary clause.

Question 14

The trustee is the person for whose benefit a trust is held.

Accepted Answer

A) True 
 B)False

Question 15

A gift of real estate other than by will is called a devise.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) a charitable trust. 
B) a constructive trust. 
C) a spendthrift trust. 
D) an illegal trust. 
A) a charitable trust. 
B) a constructive trust. 
C) a spendthrift trust. 
D) an illegal trust.

Question 17

To "publish" a will means to release it to the media.

Accepted Answer

A) True 
 B)False

Question 18

One who dies after having made a valid will is said to have died testate.

Accepted Answer

A) True 
 B)False

Question 19

A married person who makes a will generally cannot avoid leaving a certain portion of the estate to the surviving spouse.

Accepted Answer

A) True 
 B)False

Question 20

Dotty creates a trust by her will for the benefit of Eppie and her family to come into existence on Dotty's death.This is

Accepted Answer

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

Exam 52: A: Wills and Trusts

A trust that a grantor executes orally in contemplation of imme?diate death is a testamentary trust.

A divorce necessarily revokes an entire will.

Before dying from injuries suffered in a fall from a horse,Inez tells her cousin Juana that on her death,Lysander is to be given possession of Inez's Rancho Mirage.In most states,this oral "will" would be

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

A nuncupative will is a will that is completely in the handwriting of the testator.

Brick executes a will,telling the witnesses that the document they are about to sign is his "last will and testament." After Brick's death,the will is ad?mitted for probate.Cecily,his lawyer,reads the will to his heirs.The pub?lication of the will is

Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons,Frank and Greg,in equal shares.The will disinherits a third son,Hal.Don and Elsie divorce,but Don dies before changing his will.Under the Uniform Probate Code

Skyler dies after having made a valid will.Skyler has died

Travis's will states,"I give to my brother Ubi my gold pocket watch." This is

Grey has two children,Ham (the eldest)and Ivy,both of whom prede?cease Grey.Ham is survived by a daughter,Jess,and Ivy by two sons,Kato and Lars.On Grey's death,if the estate is distributed per stirpes

In a spendthrift trust,a beneficiary can transfer his or her right to the trust's principal if the transfer is "thrifty."

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

The trustee is the person for whose benefit a trust is held.

A gift of real estate other than by will is called a devise.

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

To "publish" a will means to release it to the media.

One who dies after having made a valid will is said to have died testate.

A married person who makes a will generally cannot avoid leaving a certain portion of the estate to the surviving spouse.

Dotty creates a trust by her will for the benefit of Eppie and her family to come into existence on Dotty's death.This is

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course