Deck 52: Wills and Trusts

Question 1

Codicils are an entirely new will.

Answer 1

False

Question 2

When determining whether a person has testamentary capacity, a court must only determine whether the person was of sound mind.

Answer 2

False

Question 3

What is the rationale behind the principle that a witness does not have to sign or witness the testator sign a holographic will?

A) When the entire will is in the testator's handwriting, it lessens the chance of fraud or forgery.
B) It is unnecessary and inconvenient to involve other parties if the will is created by the testator.
C) The testator had ample time to consider the consequences of creating the will.
D) The writing is better evidence of the testator's state of mind.
E) Witnesses are required to sign and witness the testator signing a holographic will.

Answer 3

A

Question 4

A will is a legal document that outlines how a person wants his or her property distributed upon death.

Question 5

The amount a surviving spouse inherits when a spouse dies intestate is determined by state law, which varies from state to state.

Question 6

Usually, express trusts are written and are called trust instruments or agreements.

Question 7

A personal representative of an estate makes sure that gifts of real and personal property go to the correct beneficiaries, persons who inherit under the will.

Question 8

Individuals can sue against a will for fraud or undue influence.

Question 9

Dominic's state does not allow a testamentary disposition to a pet; therefore, Dominic should consider placing funds for his pet in a trust, which would be allowed.

Question 10

What was the result in Mattison v. Social Security Commissioner, the case in the text involving the issue of whether twins conceived after the death of the father via artificial insemination using his sperm could inherit as children under state intestacy law thereby becoming entitled to social security survivors' benefits?

A) That because the twins were conceived and born after the father's death, they did not survive him as heirs legally and were not entitled to any succession rights.
B) That because the mother had permission from the father to use the sperm after his death, the twins were considered legal heirs and were entitled to succession rights.
C) That regardless of whether or not the mother had permission from the father to use the sperm after his death, the twins were considered legal heirs and were entitled to succession rights.
D) That because the twins were conceived within 30 days of the decedent's death, they were considered legal heirs and entitled to succession rights.
E) That because the mother was alive and the twins were conceived and born after the father's death, they did not survive him as heirs legally and were not entitled to any succession rights; otherwise, had the mother been deceased, the twins would have been entitled to succession rights in regard to the father as well as the mother.

Question 11

Wills are governed primarily by federal law.

Question 12

A person may revoke a will by physically destroying it.

Question 13

A will written on a napkin will satisfy the writing requirement for a valid will.

Question 14

In order to determine death, surgeons in the U.S. use a heart-lung standard rather than a brain-death standard.

Question 15

The process by which an individual decides what to do with his or her real and personal property during and after life is known as ________.

A) Life planning
B) Estate planning
C) Probate succession
D) Allocation planning
E) Asset allocation

Question 16

A living will is a document by which a person expresses his or her wishes regarding medical treatment desired if an accident or illness prevents him or her from participating in medical decisions.

Question 17

Glenda is in the hospital and is about to pass away. She calls the nurse in and verbally tells her that she wants all of her property to go to her granddaughter Cecilla. This type of will is

A) a holographic will
B) an illegal will
C) a verbal will
D) a stated will
E) an oral will

Question 18

A settlor is not allowed to revoke a trust unless he or she reserves a right to revoke the trust.

Question 19

What was the result in the Case Opener, the case involving whether a bank account and cash not specifically referenced in the will passed to the sole beneficiary named in a will or through intestate succession when the will did not contain a residuary clause?

A) That the land passed to the sole beneficiary named in the will because it was apparent that the deceased meant for him to receive her entire estate.
B) That the estate was partially intestate and that the bank account and land at issue passed through intestate succession.
C) That the land passed to the state because the disposition of it was unclear.
D) That the land would have passed through intestate succession if the decedent had any issue, meaning children or grandchildren; but that because she had no children or grandchildren, the land and bank account passed to the sole beneficiary of the will.
E) That the value of the land and bank account would be split on a 50/50 basis between the sole beneficiary named in the will and the relatives who would inherit through intestate succession.

Question 20

The Uniform Anatomical Gifts Act (UAGA) provides that any individual age 21 or older may give all or any part of his or her body to a donee on death so long as the closest surviving next-of-kin does not object.

Question 21

If Dawna leaves her niece a set of antique dishes in her will, this gift is known as a(n)

A) behest
B) gifted
C) devise
D) bequeath
E) endowment

Question 22

When someone dies, a[n] ________ chosen by the testator collects the testator's property, pays debts and taxes, and makes sure the remainder of the will is distributed.

A) Inheritance devisor
B) Inheritance regulator
C) Trustee
D) Personal representative
E) Personal devisee

Question 23

Property of a decedent that is not part of a probate estate is ________ property.

A) Exempt
B) Nonbequeathable
C) Nondevisable
D) Nonprobate
E) Divisible

Question 24

Wills are ambulatory which means

A) That a court must approve them.
B) That they are made on the deathbed of a patient.
C) That once made, the will cannot be changed.
D) That in order to be valid they must be on file in a courthouse.
E) That testators can change their wills.

Question 25

Norman left his farm and the surrounding orchard to his grandson in his will. This is known as a(n)

A) endowment
B) grant
C) bequest
D) devise
E) property grant

Question 26

________ statutes are state laws that outline how a person's property will be distributed if he or she dies without a will.

A) Testate
B) Testacy
C) Intestacy
D) Will
E) Probate

Question 27

Belgina decided to destroy her will and burned it in a campfire. When she destroyed it, this is also known as ________ the will.

A) revoking
B) destroying
C) burning
D) terminating
E) Liquidating

Question 28

________ is a uniform law proposed by the National Conference of Commissioners on Uniform State Laws that provides guidance in the area of estate planning?

A) The Uniform Probate Code
B) The National Will Act
C) The Uniform Will Act
D) The Federal Probate and Will Act
E) The National Probate Code

Question 29

Melanie was helping take care of her dying grandmother. She persuaded her grandmother to change her will to leave everything to Melanie because she had spent so much time and effort taking care of her. If he grandmother changes her will based on Melanie's persuading her to do so, this is an example of ________.

A) undue influence
B) fraud
C) persuasion
D) duress
E) illegal intent

Question 30

A ________ is a will that two or more testators execute in which they leave property to each other as long as the survivor agrees that when he or she dies, the remaining property will be distributed according to a plan created by all testators.

A) A planned will
B) An estate will
C) A mutual will
D) A co-will
E) A presumptive will

Question 31

Jolie is concerned about her health so she writes and signs a will and puts it in her drawer. This type of will is considered to be a(n) ________ will.

A) invalid
B) holographic
C) illegal
D) improper
E) presumptive

Question 32

Probate is the process of what?

A) Reading a will
B) Distributing bank assets
C) Reading a trust
D) settling an estate
E) changing property into someone's name

Question 33

A witness to a will is said to ________ the will by acknowledging the testator's signature.

A) approve
B) acknowledge
C) admit to
D) attest to
E) evaluate

Question 34

Distribution per capita means distributing an estate ________.

A) by class or representation
B) by individual
C) by will and not trust
D) by trust not will
E) by state statutory language

Question 35

Which of the following allows a person to transfer property to another person with the property to be used for the benefit of a third person?

A) Probate
B) Trust
C) Command
D) Executor
E) Allocation

Question 36

Which of the following would have an interest in a will?

A) A potential beneficiary
B) A court
C) The state
D) The government
E) The IRS

Question 37

Distribution per stirpes means distributing an estate

A) by class or representation
B) by individual
C) by will and not a trust
D) by trust not by a will
E) by state statutory language

Question 38

Fraud occurs when a testator relies on ________ when making a will?

A) undue influence
B) false statements
C) negligent statements
D) reckless statements
E) misinformation

Question 39

Regarding a party that cannot be a witness to a will, which of the following statements is correct?

A) A beneficiary may not be a witness to a will.
B) A spouse may not be a witness to a will.
C) An adult child may not be a witness to a will.
D) An adult child may be a witness to a will, but no other relative may be a witness to a will.
E) A spouse may be a witness to a will, but no other relative may be a witness to a will.

Question 40

When it is said that a person dies ________, it means that he or she died without a will.

A) Testate
B) Testacy
C) Intestate
D) Unwilled
E) Unprobated

Question 41

Kiki, planning ahead, executed a ________ which allows Barthem to act as her agent for purposes of making medical decisions if she can no longer make those decisions herself.

A) durable power of attorney
B) medical care proxy
C) medical decision contract
D) agent proxy
E) living health proxy

Question 42

An implied trust is also called a[n] ________ trust.

A) Untrue
B) Involuntary
C) Reviewed
D) Judicial
E) Trustless

Question 43

[Bruiser] Samuel, a ninety-year-old wild bronco rider in the rodeo, had a will leaving all his possessions to a girlfriend, Winona, age twenty-two. During a rodeo, Samuel was placed on a particularly wild bronco named "Bruiser." During the ride, Crabby the clown yelled out to Samuel that Winona had suggested that particular horse. Samuel was annoyed about that because he was having trouble controlling Bruiser. Nevertheless, Samuel prevailed and collected the prize. Samuel was so excited that he had a heart attack. Just before he died, he yelled out, "Winona, you had me put on that crazy horse, and I'm revoking my will. I'm dying, and I'm leaving everything to my other girlfriend, Keisha." A number of witnesses heard his statement; and Crabby, who had always liked Keisha more than Winona, promptly wrote down Samuel's statement. Winona knew nothing about Keisha and was very upset. She told Keisha that Keisha could have nothing because Samuel's written will was still in effect. She also told Keisha that Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything. Samuel's daughter, Laura, age 65, also entered the discussion stating that Winona had unfairly coerced Samuel into writing a will leaving her everything.
What was the effect of Samuel's statement that Keisha should take everything, assuming he was of sound mind?

A) Because a will must be in writing, his statement has no effect.
B) Because a will is not usually required to be in writing, his statement was effective to revoke any prior will.
C) His statement was ineffective to revoke his prior will only because he was angry when he made it.
D) His statement was ineffective to revoke his prior will only because he believed he was dying at the time he made it.
E) His statement would likely be upheld as an oral will because he made the statement during his last illness in front of witnesses who later wrote down his wishes.

Question 44

The term ________ covers a variety of legal instruments a person can use to express his or her wishes about efforts to prolong life.

A) Medical directives
B) Prolonging directives
C) Advance instructions
D) Advance directives
E) Actual prohibitions

Question 45

How many states, if any, have adopted the Uniform Anatomical Gifts Act?

A) It has been adopted by every state in the U.S.
B) It has been adopted by 40 states in the U.S.
C) It has been adopted by half the states in the U.S.
D) It has been adopted by 13 states in the U.S.
E) At this point, it has not been adopted by any state in the U.S.

Question 46

Signatories to ________ agree to accept wills of other signatories for probate, as to matters of form, if such wills are executed with the provisions of the convention.

A) The Convention on Uniform Wills
B) The Convention Providing for a Uniform Law on the Form of an International Will
C) The Convention on Uniform Wills and Trusts
D) The Convention Approving Uniformity on the Form of International Wills and Trusts
E) The Convention for Recognition of Foreign Wills

Question 47

A trust created while the settlor is alive or by will is known as a(n) ________.

A) Actual
B) Express
C) Implied
D) Resulting
E) Congruent

Question 48

A(n) ________ trust is created by a court to hold property in trust for its rightful owner.

A) Real
B) Constructive
C) Resulting
D) Validating
E) Actual

Question 49

Which of the following is a false statement regarding trusts?

A) A settlor may revoke a trust at any time.
B) Settlors may create trusts to prevent individuals from getting access to certain assets.
C) Trusts may be set up to make "awards" to family members who make significant contributions in certain fields, such as education, science, law, or medicine.
D) A trust document may state that the trust will terminate when an event happens, such as when the remainderman reaches a certain age.
E) A court can place assets of a partnership in a constructive trust if it discovers that one partner is engaging in fraudulent or unconscionable conduct that might negatively affect the interests of another partner.

Question 50

A[n] ________ trust is created by a court when an express trust fails and the court can imply a trust from certain behavior.

A) Real
B) Constructive
C) Resulting
D) Validating
E) Actual

Question 51

Which of the following is a false statement regarding the trust system in India?

A) There are legal constructs, similar to trusts, allowing families to pass wealth from generation to generation.
B) Civil law governs the trust system in India.
C) The family waqf resembles a trust, although the beneficiary of a family waqf must have a religious, pious, or charitable purpose.
D) Waqfs and trusts have some similarities.
E) Some legal scholars have suggested that the religious roots of the waqf have made this construct less flexible and responsive to change over time than the trust, with its secular roots.

Question 52

[Family Trust] Jasmine had made lots of money in the stock market. She was getting older and was concerned about the integrity of her children and grandchildren who seemed unwilling to work. She decided that she would place the majority of her money in a trust and instruct that it be distributed only to family members who were gainfully employed or attending school on a full-time basis throughout the next twenty years. The remainder of the trust at that time was to be given to a local animal shelter. She also told her lawyer, Bao, that although she was in good health and mind at the present time, she would like a document drawn up giving her daughter Erica the power to make decisions for her, including financial decisions, should her health deteriorate to the point that she could not handle her own affairs.
What is the appropriate term for a person or entity that receives a portion of the trust corpus when a trust is terminated?

A) Terminator
B) Ender
C) Receiver
D) Transferor
E) Remainderman

Question 53

If an agent is in possession of a document that allow them to make health care decisions on behalf of a principal, this document is known as a(n) ________.

A) living will
B) health care proxy
C) principal/agent proxy
D) medical agent proxy
E) living health care proxy

Question 54

[Bruiser] Samuel, a ninety-year-old wild bronco rider in the rodeo, had a will leaving all his possessions to a girlfriend, Winona, age twenty-two. During a rodeo, Samuel was placed on a particularly wild bronco named "Bruiser." During the ride, Crabby the clown yelled out to Samuel that Winona had suggested that particular horse. Samuel was annoyed about that because he was having trouble controlling Bruiser. Nevertheless, Samuel prevailed and collected the prize. Samuel was so excited that he had a heart attack. Just before he died, he yelled out, "Winona, you had me put on that crazy horse, and I'm revoking my will. I'm dying, and I'm leaving everything to my other girlfriend, Keisha." A number of witnesses heard his statement; and Crabby, who had always liked Keisha more than Winona, promptly wrote down Samuel's statement. Winona knew nothing about Keisha and was very upset. She told Keisha that Keisha could have nothing because Samuel's written will was still in effect. She also told Keisha that Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything. Samuel's daughter, Laura, age 65, also entered the discussion stating that Winona had unfairly coerced Samuel into writing a will leaving her everything.
Which of the following is a true statement regarding Laura's claim that Winona unfairly coerced Samuel into naming her as a beneficiary in the written will and that the written will is ineffective?

A) The written will is ineffective if Samuel wrote it under circumstances by which Winona took advantage of his weak physical or emotional condition to persuade him to write the will leaving her everything.
B) The written will is ineffective only if a witness is available who will testify that Samuel admitted that he would never have left all his possessions to Winona if he were not dependent on her for his wellbeing.
C) There is a presumption of undue influence based upon the age difference between Winona and Samuel.
D) Winona is legally entitled to a presumption of no undue influence because she was Samuel's girlfriend at the time the will was written.
E) Winona is legally entitled to a presumption of no undue influence only if she can establish through the testimony of a disinterested witness that Samuel had asked her to marry him.

Question 55

[Bruiser] Samuel, a ninety-year-old wild bronco rider in the rodeo, had a will leaving all his possessions to a girlfriend, Winona, age twenty-two. During a rodeo, Samuel was placed on a particularly wild bronco named "Bruiser." During the ride, Crabby the clown yelled out to Samuel that Winona had suggested that particular horse. Samuel was annoyed about that because he was having trouble controlling Bruiser. Nevertheless, Samuel prevailed and collected the prize. Samuel was so excited that he had a heart attack. Just before he died, he yelled out, "Winona, you had me put on that crazy horse, and I'm revoking my will. I'm dying, and I'm leaving everything to my other girlfriend, Keisha." A number of witnesses heard his statement; and Crabby, who had always liked Keisha more than Winona, promptly wrote down Samuel's statement. Winona knew nothing about Keisha and was very upset. She told Keisha that Keisha could have nothing because Samuel's written will was still in effect. She also told Keisha that Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything. Samuel's daughter, Laura, age 65, also entered the discussion stating that Winona had unfairly coerced Samuel into writing a will leaving her everything.
Which of the following is a true statement regarding Winona's claim that Keisha was entitled to nothing because Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything?

A) Whether he was suffering from a mental illness is irrelevant because for other reasons, his statement granting Keisha any possessions is invalid.
B) Winona is correct if Samuel had undergone any treatment for any form of mental illness within the last year.
C) Winona is correct if Samuel had undergone any treatment for any form of mental illness within the last six months.
D) Winona is incorrect because the existence of mental illness is irrelevant to a person's capacity to make a will.
E) Winona is correct if it can be established that Samuel had a serious enough mental illness that he was not of sound mind and lacked capacity to make a will.

Question 56

[Family Trust] Jasmine had made lots of money in the stock market. She was getting older and was concerned about the integrity of her children and grandchildren who seemed unwilling to work. She decided that she would place the majority of her money in a trust and instruct that it be distributed only to family members who were gainfully employed or attending school on a full-time basis throughout the next twenty years. The remainder of the trust at that time was to be given to a local animal shelter. She also told her lawyer, Bao, that although she was in good health and mind at the present time, she would like a document drawn up giving her daughter Erica the power to make decisions for her, including financial decisions, should her health deteriorate to the point that she could not handle her own affairs.
What was the document that Jasmine wanted, giving Erica the power to handle her affairs should she become unable to do so herself?

A) Power of attorney
B) Durable power of attorney
C) Disciplined trust
D) Acknowledged power of conveyance
E) Undisciplined trust authority

Question 57

Regarding a trust, which of the following is a false statement?

A) Interest may be generated by a trust.
B) Income may be paid to a person identified as an income beneficiary.
C) A person entitled to income must be the person entitled to the trust corpus.
D) A trust may be created to protect a pet.
E) A trust may be created for tax reasons.

Question 58

Which of the following is not a requirement of a witness to a will?

A) The witness must see the testator sign the will.
B) The witness must be of sound mind.
C) The witness must ascertain whether the testator is of sound mind.
D) The witness cannot be a beneficiary.
E) The witness must sign the will.

Question 59

A ________ is a person who creates a trust.

A) Benefactor
B) Trustor
C) Trustee
D) Settlor
E) Settlee

Question 60

A(n) ________ trust is a trust created by a court rather than a settlor.

A) Implied
B) Untrue
C) Limited
D) Reduced
E) Protection

Question 61

A testator must have ________, which means that the person must be old enough to write a will (age 18 in most states) and be of sound mind.

A) financial stability
B) testamentary capacity
C) been properly counseled
D) sufficient evidence
E) proper education

Question 62

Which of the following is not an example of nonprobate property?

A) Life insurance with the named beneficiary as the estate
B) Life insurance with named beneficiaries
C) Pension plan distributions
D) Property held in trust for the benefit of another
E) Jointly held property

Question 63

[Secretary Visits] Kara wrote a will leaving half of her assets to her husband, Troy, and half to her adult daughter from a previous marriage, Madison. Kara, however, found out that Troy had been spending a lot of time with his secretary, Lucy. Angrily, Kara typed on a new piece of paper that she stapled to her will, "You skunk, Troy, you take nothing. Madison gets it all." She then signed her name. Kara then took the will to her best friend, Adriana, who signed as a witness verifying that Kara meant for Troy to take nothing. Kara was struck by lightning a few days later and died. Troy told Madison that the revision to the will meant nothing because, for one thing, it was not prepared by a lawyer.
Regarding Troy's statement that the revision to the will meant nothing, which of the following statements is true?

A) Regardless of whether or not the change was made by a lawyer, it was ineffective because in order to revise a will, the initial will must be revoked and a completely new will written.
B) The revision to the will was ineffective because it was not done by a lawyer.
C) The revision to the will was ineffective, not because it was done by Kara, but because it improperly expressed personal opinion of an individual which by law must be absent from a will.
D) Assuming other requirements are met, the change to the will is not objectionable on the basis that it was done by Kara or on the basis that it expressed a personal opinion regarding Troy.
E) The change to the will is not objectionable so long as Madison can prove by a preponderance of the evidence that Troy was indeed having an affair with Lucy.

Question 64

Wills are ambulatory, which means what?

A) They can never be changed.
B) To be valid they must be filed at a county court.
C) They can be changed.
D) Property must be distributed to family.
E) The only way to change the will is through a reservation of rights to change the will.

Question 65

Who is the recipient of the interest or appreciation generated by a trust?

A) Trustee
B) Legatee
C) Income beneficiary
D) Beneficiary
E) Remainderman

Question 66

When someone dies, a(n) ________ chosen by the testator collects the testator's property, pays debts and taxes, and makes sure the remainder of the estate is distributed.

A) personal representative
B) beneficiary
C) administrative assistant
D) testatrix
E) attorney

Question 67

[Will Formalities] Mark decided he wanted a will. Mark contacted Anthony, a reputable attorney with an expertise in estate planning. In their initial meeting, Mark described the property he owned and how he wished it to be distributed upon his death. Mark also specified his funeral arrangements. Anthony drew up the will and provided Mark with a draft. Mark made some minor revisions, which Anthony incorporated. Mark and Anthony went over the will one last time, in the presence of Anthony's administrative assistants, Stacy and Jason. Mark was satisfied with the will and signed it. Two years later, Mark wanted to revise his will to add his new wife, Karen. The document named Karen as the primary beneficiary instead of Mark's brother, John. Mark handwrote these provisions on a thin cutting board and labeled it "codicil," signed it, and attached it to his will. Mark unexpectedly dies and Karen and John dispute who should receive the majority of Mark's assets.
Which of the following statements is true regarding the will Anthony drafted?

A) It fails to meet the requirements of a valid will because Anthony did not ask for a doctor's evaluation to determine if Mark was of sound mind.
B) It fails to meet the requirement of attestation by witnesses.
C) It meets all of the requirements for a valid will.
D) It fails to meet the writing requirement.
E) It fails to meet the signature requirement.

Question 68

Which type of trust is designed to take effect on the completion of a specified behavior?

A) Constructive
B) Family incentive
C) Implied
D) Involuntary
E) Living

Question 69

How effective is Adriana's signature in this situation?

A) It is not an effective attestation because she did not witness Kara sign the will.
B) It is effective.
C) It is effective only if Adriana had seen Kara's signature before and could identify the signature as Kara's.
D) It is effective only because a change to a will is involved which has less stringent requirements for the signature of a witness than that required for an original will.
E) It is ineffective only because Kara's attempted change is ineffective.

Question 70

[Secretary Visits] Kara wrote a will leaving half of her assets to her husband, Troy, and half to her adult daughter from a previous marriage, Madison. Kara, however, found out that Troy had been spending a lot of time with his secretary, Lucy. Angrily, Kara typed on a new piece of paper that she stapled to her will, "You skunk, Troy, you take nothing. Madison gets it all." She then signed her name. Kara then took the will to her best friend, Adriana, who signed as a witness verifying that Kara meant for Troy to take nothing. Kara was struck by lightning a few days later and died. Troy told Madison that the revision to the will meant nothing because, for one thing, it was not prepared by a lawyer.
What document is executed to change a will?

A) A testament
B) A documentary revision
C) A codicil
D) A revision
E) There is no document that changes or adds to a will because to revise a will, the initial will must be revoked and a completely new will written.

Question 71

Which of the following refers to a person's right to place limits on other people's efforts to prolong her or his life.

A) Right to die
B) Advance directives
C) Durable power of attorney
D) Power of attorney
E) Health care proxy

Question 72

Testators must go through the same procedures to make a(n) ________ as those followed in making the original will.

A) endowment
B) valid codicil
C) bequest
D) donation

Question 73

Bolton lived with his dying grandmother until her final days. When her will is read, everything is left to Bolton, cutting out all the other grandchildren and children. What basis might the children and grandchildren challenge the will on?

A) Undue influence
B) Fraud
C) Victimization
D) Criminal intent
E) The will was not attested by any witnesses

Question 74

Which of the following statements is false regarding the International Institute for the Unification of Private law?

A) It is an independent intergovernmental organization
B) It prepares uniform laws
C) It strives to promote harmony in private law
D) It will not accept wills in conformance with the Convention Providing for a Uniform Law on the Form of an International will.
E) It strives to promote unity in private law

Question 75

What does the term trust corpus refer to?

A) The property that needs to be added to a trust to make it complete
B) A will that is irrevocable
C) Assets from a will that cannot be distributed
D) The property held in trust
E) The burial plot of the testator

Question 76

What is the term for a person who holds property and uses it for the benefit of a third person?

A) Trustor
B) Trustee
C) Settlor
D) Beneficiary
E) Remainderman

Question 77

Carson decides upon his death that he wants to donate his body to science and leaves this wish in his will. This is known as a(n) ________

A) advance directives
B) body disposition directive
C) distribution of body donation
D) anatomical gift
E) donor gift

Question 78

Which of the following is not one of the reasons suggested by the text as to why people create trusts?

A) Protect another person.
B) Protect an animal.
C) Hide assets from creditors.
D) Prevent individuals from gaining access to certain assets.
E) Avoid paying taxes.

Question 79

[Family Trust] Jasmine had made lots of money in the stock market. She was getting older and was concerned about the integrity of her children and grandchildren who seemed unwilling to work. She decided that she would place the majority of her money in a trust and instruct that it be distributed only to family members who were gainfully employed or attending school on a full-time basis throughout the next twenty years. The remainder of the trust at that time was to be given to a local animal shelter. She also told her lawyer, Bao, that although she was in good health and mind at the present time, she would like a document drawn up giving her daughter Erica the power to make decisions for her, including financial decisions, should her health deteriorate to the point that she could not handle her own affairs.
What type of trust did Jasmine set up to encourage her family members to go to school or work?

A) This type of trust would be identified as an illegal trust because it would not be enforced.
B) Relative review
C) Relative pushing
D) Family encouragement
E) Family incentive

Question 80

Genue moved to the United States from Greece. He lived in the states for many years before finally passing away without a will in Michigan. How will his property be distributed?

A) By the Michigan state laws.
B) By the laws of Greece since that is originally where he is from.
C) International law will determine the property distribution.
D) By federal laws.
E) Genue's property will be distributed according to how his family wants it to be distributed.