Deck 30: Estate Planning

Question 1

Myron had two children, Cheryl and Pete, who predeceased him. Cheryl had three children and Pete had one child. Myron had a will. Which of the following is true?

A)If Myron's will indicates that the issue are to inherit per stirpes , Pete's child will receive one half of Myron's estate.
B)If Myron's will indicates that the issue are to inherit per stirpes , Pete's child will receive one fourth of Myron's estate.
C)If Myron's will indicates that the issue are to inherit per capita , Pete's child will receive one half of Myron's estate.
D)If Myron's will indicates the issue are to inherit per capita , each of Cheryl's children will receive one sixth of Myron's estate.

Answer 1

A

Question 2

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Answer 2

True

Question 3

Which of the following is NOT required to create a valid trust?

A)legal age and sound mind of the grantor
B)witnesses
C)a beneficiary(ies)
D)property transferred to the trust

Answer 3

B

Question 4

An executor who is related to the testator is not entitled to compensation.

Question 5

In order to travel extensively and not worry about handling her affairs, Lee transfers most of her assets into a trust, with her bank serving as trustee. She has created a(n)________ trust.

A)travel
B)testamentary
C)constructive
D)inter vivos

Question 6

The only function of a will is to dispose of a person's property upon death.

Question 7

Legal requirements for a will depend on state law, but generally include all but which of the following?

A)a writing
B)signatures of at least three witnesses
C)the testator's signature
D)witnesses who will not inherit under the will

Question 8

Which of the following does NOT act as a revocation of a will?

A)creating a codicil
B)the testator putting an X through it
C)physically destroying the will by intentionally shredding it
D)signing a new will that expressly revokes prior wills

Question 9

Experts estimate that more than _______ percent of the population will not be capable of making their own medical decisions at the end of their lives.

A)25
B)50
C)75
D)90

Question 10

How many witnesses are required for a nuncupative will to be valid?

A)one
B)two
C)five
D)seven

Question 11

Parents may not disinherit their minor children without good reason.

Question 12

Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a will, the court may not enforce the will.

Question 13

Property of a person who dies without a will is distributed according to intestacy laws.

Question 14

A child who is left nothing under the parent's will is called a

A)beneficiary.
B)decedent.
C)pretermitted child.
D)settlor.

Question 15

A later will revokes a prior will only if that revocation is clearly stated.

Question 16

The Uniform Probate Code has been adopted in all states.

Question 17

Which is true of an inter vivos trust?

A)It is created by a will.
B)The grantor cannot serve as trustee.
C)It is established while the grantor is still alive.
D)Such a trust is not revocable.

Question 18

Jacob has been quite ill. When three of his neighbors come to visit one day, he tells them that he is dying and that he wants them to witness his oral will. In some states, he can validly dispose of his personal property by his witnessed, oral statements.

Question 19

Per capita means each heir gets an equal share of an estate.

Question 20

In estate planning, a person's direct descendants are called

A)issue.
B)testators.
C)heirs.
D)grantors.

Question 21

Identify four ways a trust can be terminated.

Question 22

The major disadvantage of a trust is

A)expense.
B)lack of privacy.
C)an often lengthy probate process.
D)lack of control.

Question 23

Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a living will is to

A)make a disposition of property.
B)express a desire not to have extreme medical treatment that would prolong their lives.
C)transfer life insurance.
D)consent to organ donation.

Question 24

Which of the following is true about wills?

A)A will can be amended to change specific terms by execution of a codicil.
B)The testatrix cannot disinherit her minor children without stating a reason in the will.
C)If the will meets the legal technicalities, the surviving spouse cannot override it.
D)Once a will is written, it cannot be changed.

Question 25

Discuss the differences between a will and a trust.

Question 26

Under the Uniform Anatomical Gift Act,

A)an individual may indicate the desire to be an organ donor by putting a provision in his will. The provision will take effect after probate of the will.
B)the willingness to be an organ donor may be indicated by signing an organ donation card in the presence of one disinterested witness.
C)family members of a decedent have no right to make a gift of the decedent's organs if the decedent did not make an affirmative indication of the desire to be a donor during her lifetime.
D)an effective donation may be made by an individual in a will or on a witnessed organ-donation card or by family members after the person's death as long as the person did not indicate a desire not to be a donor.