Deck 33: Wills, Intestacy, and Estate Planning

Question 1

The proceeds of a life insurance policy payable to a spouse cannot be disposed of by will.

Answer 1

True

Question 2

In a testamentary trust, property is placed in trust during the grantor's lifetime.

Answer 2

False

Question 3

The person making a will is called the

A) testator/testatrix.
B) administratrix.
C) executor.
D) intestate.

Answer 3

A

Question 4

At least two witnesses are required for a will to be valid.

Question 5

Gifts made to charitable and educational institutions are tax-free.

Question 6

A gift of specific real property made in a will is known as a

A) residuary gift.
B) codicil.
C) legacy.
D) devise.

Question 7

An unwitnessed, handwritten will is invalid.

Question 8

The maker of a will has the right to change it at any time.

Question 9

A gift in a will of 100 shares of IBM stock would be an example of a

A) specific legacy.
B) general devise.
C) general legacy.
D) demonstrative legacy.

Question 10

Only the federal government imposes a tax on the estate of a person who dies.

Question 11

If a person dies without making a will and has no living relatives, that person's estate becomes the property of the state.

Question 12

To be valid, a gift must be made in writing.

Question 13

A person who dies without a will is said to have died

A) per stirpes.
B) per capita.
C) testate.
D) intestate.

Question 14

Debts and estate taxes must be paid before a beneficiary can receive anything under the terms of a will.

Question 15

A disposition of a car in a will is called a

A) device.
B) sale.
C) devise.
D) legacy.

Question 16

A witness to a will must be present when the will is signed or the will is invalid.

Question 17

A witness must know that he or she is signing a will and must be familiar with the will's contents.

Question 18

A minor cannot be a witness to a will.

Question 19

As a rule, a will made by a mentally ill person is valid.

Question 20

The sole purpose of an estate plan is to dispose of a person's property upon that person's death.

Question 21

A will executed under duress is

A) invalid.
B) voidable.
C) valid if the will benefits another person.
D) valid.

Question 22

An oral will is also known as a(n) ____________________ will.

Question 23

An oral will made during the maker's final illness that disposes of the maker's personal property is

A) unenforceable.
B) a holographic will.
C) a nuncupative will.
D) none of these.

Question 24

The final step in administering an estate is called ____________________.

Question 25

In most states, the number of witnesses required for a will to be valid is

A) one.
B) three.
C) four.
D) none.

Question 26

A court-appointed person who manages the estate of a person who died without making a will is called a(n)

A) legatee.
B) administrator/administratrix.
C) devisee.
D) residuary legatee.

Question 27

The process of establishing the validity of a will is called

A) execution.
B) administration.
C) probate.
D) testacy.

Question 28

A will written in one's handwriting is called a

A) non compos mentis will.
B) nuncupative will.
C) soldier's will.
D) holographic will.

Question 29

A person who dies without leaving a valid will is said to have died ____________________.

Question 30

Of the following actions, the one not required to make a will valid is

A) signing the will.
B) witnessing the will.
C) reading the will to a witness.
D) including an attestation clause.

Question 31

A statement by witnesses declaring that they saw the signing of a will is known as a(n)

A) attestation clause.
B) codicil clause.
C) probate clause.
D) witness clause.

Question 32

A person named in a will to carry out the deceased's wishes is a(n)

A) conservator.
B) executor.
C) receiver.
D) administrator.

Question 33

A person who inherits property according to the terms of a will is a(n) ____________________.

Question 34

A person who shares in the estate of an intestate is called a(n)

A) heir.
B) executor.
C) beneficiary.
D) residuary.

Question 35

A trust not set up during the trustor's lifetime is called a(n)

A) testamentary trust.
B) life insurance trust.
C) inter vivos trust.
D) standby trust.

Question 36

By law, the only person a maker must provide for in a will is a(n)

A) minor child.
B) spouse.
C) aged parent.
D) grandchild.

Question 37

Of the following, the only method that will not effectively revoke a will is

A) tearing up the will.
B) writing a new will.
C) executing a codicil.
D) writing a letter of revocation.

Question 38

A valid gift requires a

A) delivery of the gift.
B)
B) an intention to make it.
C) recording the gift in a public office.
D) both a and

Question 39

An estate tax is imposed on the deceased's

A) real property.
B) personal property.
C) net estate.
D) property in trust.

Question 40

One who receives benefits from a trust is called a(n) ____________________.

Question 41

Burns, a married man, died leaving a will in which he left his entire estate to his two children and three nephews. Is his wife entitled to a share in the estate?

Question 42

Larkin folded her will in such a way that the witnesses could not see her signature. Larkin told the witnesses that she had already signed the will. The witnesses then signed the will. Is this will valid?

Question 43

A(n) ____________________ may elect to receive a statutory share of an estate if not left a minimum amount in a will.

Question 44

If a person dies without making a will, the ____________________ determines how the deceased's property is distributed.

Question 45

Simpson left an estate valued at $600,000. In his will, he left half of his estate to his wife and the other half to charity. Is there any estate tax payable on Simpson's estate?

Question 46

After getting married, Rosen made a will in which he left all of his property to his wife. Within the next five years, Rosen and his wife had two children. Ten years after making the will, Rosen died. Who inherits Rosen's estate?

Question 47

Gruber opened a bank account in trust for his daughter. A month later, he changed his mind and decided to revoke the trust. Can he do this?

Question 48

The person named to administer the estate of a person making a will is called a(n) ____________________.

Question 49

____________________ is the process of establishing the validity of a will.

Question 50

An amendment to a will is called a(n) ____________________.