Deck 40: Wills and Trusts

Question 1

A new will must specifically revoke a prior will or the original will stays in effect and controls if there is any conflict between the two wills.

Answer 1

False

Question 2

A testator can revoke a will by having someone else tear it up in the testator's presence.

Answer 2

True

Question 3

In most states, the testator's marriage after the execution of a will may affect the distribution of the estate.

Answer 3

True

Question 4

For a valid will, the testator's intention with respect to the transfer and distribution of his or her property is not relevant.

Question 5

For a valid will, a testator does not have to know the nature and extent of his or her property.

Question 6

Any interested party can revoke an executed will at any time.

Question 7

A formal, nonholographic will need not normally be witnessed.

Question 8

The formalities of a will are intended to help prevent fraud.

Question 9

In most states, the birth of a child after the execution of a will may affect the distribution of the estate.

Question 10

A divorce occurring after a will has been written does not revoke dispositions of property made under the will to the former spouse.

Question 11

Intestacy laws determine the distribution of the property of one who dies without a will.

Question 12

After someone dies, all of the real and personal that he or she owns will be transferred to others.

Question 13

Testators are required to give their estates to blood relatives.

Question 14

A will must be in writing.

Question 15

A specific devise does not single out any particular item of property to be transferred by will but simply specifies a sum of cash.

Question 16

Statutes of descent and distribution regulate how property is distributed when a person dies with a will.

Question 17

Modifications to a will after death are allowed.

Question 18

A person who makes a will is known as a probate.

Question 19

A testator is a person who challenges, or tests, a will.

Question 20

For a will to be valid, the testator's signature must appear in it.

Question 21

A trust is an arrangement to administer property for the benefit of another.

Question 22

Under the per stirpes method of distribution, all heirs in a certain class are guaranteed equal inheritance.

Question 23

Faye executes a will in which Gail is appointed to execute the will.  After Faye dies, Gail lacks the capacity to serve, and a court appoints Holly to handle the probate of Faye's estate.  In this situation, Gail is the

A) decedent.
B) executor.
C) administrator.
D) beneficiary.

Question 24

In an irrevocable living trust, legal title to the trust property passes to the beneficiary.

Question 25

Glenn makes a will. A court appoints Herman to administer the estate. Among Glenn's heirs is his daughter Ilsa. The testator is

A) none of the choices.
B) Ilsa.
C) Herman.
D) Glenn.

Question 26

Under the per capita method of distribution, an heir takes the share that his or her deceased parent would have been entitled to inherit.

Question 27

Under intestacy laws, stepchildren are considered kin.

Question 28

Paul makes a gift of real estate in his will to Orly. This gift is

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

Question 29

With a resulting trust, assets held in the trust can pass to the heirs after going through probate.

Question 30

Under intestacy laws, the debts of the decedent are transferred to his or her heirs for payment.

Question 31

Under intestacy laws, if no heirs exist, then the property of the estate reverts to the state.

Question 32

Francisco dies without a will. A court appoints Gillian to handle the probate of the estate. The decedent is

A) Francisco's heir.
B) Francisco.
C) Gillian.
D) the court.

Question 33

On Bob's death, all of his property can be transferred through

A) a will.
B) state laws prescribing the distribution of property among heirs.
C) a trust.
D) any of the choices.

Question 34

To be legally effective, a trust must be express.

Question 35

A testamentary trust is created by a will and comes into existence on the settlor's death.

Question 36

A constructive trust is imposed by a court to promote fairness.

Question 37

An express trust is created or declared in definite terms.

Question 38

Under intestacy laws, most of an intestate's assets pass to the decedent's parents.

Question 39

At the grantor's death, assets held in a living trust revert to the decedent's estate.

Question 40

Under intestacy laws, a surviving spouse receives the decedent's entire estate if there are no children or grandchildren surviving.

Question 41

In her will, Delia makes a gift of $10,000 to Esteban. This gift is

A) a trust.
B) a devise.
C) a legacy.
D) residuary.

Question 42

Les executes a will in which he leaves everything to his spouse, Mindy, and in which he appoints Norma to administer the estate. The will must be signed by

A) Les only.
B) Les and Mindy only.
C) Les, Mindy, and Norma.
D) a probate judge.

Question 43

Finn does not execute a will before he dies, with no surviving spouse or child. His survivors include his grandson Gage and his niece Hailey. In most states, his estate would pass to

A) Gage only.
B) Hailey only.
C) Gage and Hailey in equal measure.
D) the state.

Question 44

Grover does not execute a will before he dies. His survivors include his spouse Helene and their two children, Irene and John. With respect to Grover's estate, under the usual intestacy laws, Helene will probably receive

A) everything.
B) nothing.
C) one-half.
D) one-third.

Question 45

Mace is asked to serve as a witness to Niles's will. To qualify, Mace must be

A) a U.S. citizen.
B) all of the choices.
C) at least eighteen years old.
D) mentally competent.

Question 46

Jason does not execute a will before he dies. With respect his estate, the assets are distributed first to

A) pay the debts of the decedent.
B) support the surviving spouse and children.
C) benefit the collateral heirs.
D) satisfy gifts to the lineal heirs.

Question 47

Ruth executes a will naming her nephew Stan as sole beneficiary. One year later, Ruth executes another will, naming her niece Tammy as sole beneficiary, but does not state that she is revoking the previous will. On Ruth's death

A) Stan and Tammy will share the estate in equal shares.
B) Stan will be the sole heir.
C) Tammy will be the sole heir.
D) the estate will pass as if there were no will.

Question 48

Carl dies without a will, survived by his granddaughter Dora and her brother Elton. The grandchildren are Carl's

A) collateral heirs.
B) decedents.
C) trustees.
D) lineal heirs.

Question 49

Kent's will states, "I leave my blue sports car to Lorena." This is

A) a specific legacy.
B) a specific devise.
C) a specific trust.
D) a specific residuary.

Question 50

The grandchildren, brothers, and sisters of a decedent are known as his or her

A) collateral heirs.
B) lineal heirs.
C) adoptive heirs.
D) per stirpes or per capita heirs.

Question 51

Molly is not married and has no children. She executes a will, disposing of her estate to her sister Nina. Later, Molly marries Owen. They have no children. Molly does not execute a new will before she dies. With respect to Molly's estate, in most states Owen is entitled to

A) everything.
B) nothing.
C) one-half.
D) one-third.

Question 52

For Vern's will to be valid, he must be mentally competent at the time of

A) death.
B) the acquisition of the property to be distributed under the will.
C) the making of the will.
D) the probate of the will.

Question 53

Emmett has two children, Frank and Gene, both of whom predecease Emmett. Frank is survived by his daughter Heidi. Gene is survived by his sons Ike and Jake. On Emmett's death, if the distribution of his estate is per stirpes , Heidi will receive

A) everything.
B) nothing.
C) one-half.
D) one-third.

Question 54

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

A) a codicil.
B) a type of trust.
C) a revocation.
D) a residuary clause.

Question 55

Sally handwrites her will on a sheet of blank paper. This will is

A) invalid.
B) holographic.
C) honorific.
D) homogeneous.

Question 56

Eve, Fran, and Gina want to execute wills. Eve is fifteen years old, Fran is seventeen, and Gina is nineteen. In most states, those with the capacity to execute a will are

A) Eve, Fran, and Gina.
B) Fran and Gina only.
C) Gina only.
D) Eve and Gina only.

Question 57

Leona executes a separate written instrument to revoke her prior will. This separate document is

A) a residuary clause.
B) a codicil.
C) a specific bequest.
D) a type of trust.

Question 58

Patty executes a will, leaving her estate to her spouse Quentin. They have a daughter Rita. Later, Patty and Quentin divorce. Patty does not execute a new will before she dies. With respect to Patty's estate, Quentin is entitled to

A) everything.
B) nothing.
C) one-half.
D) one-third.

Question 59

Maria does not execute a will before she dies. The distribution of her estate is regulated by

A) the comprehension of the natural objects of her bounty.
B) the decisions of a trustee appointed by a probate court.
C) statutes of descent and distribution.
D) the terms of a different decedent's will disposing of a similar estate.

Question 60

Tom writes out his will on a sheet of hospital stationary before going into emergency surgery. This is

A) undue influence.
B) a holographic will.
C) a testamentary trust.
D) fraud.

Question 61

Reese owns Sierra Ranch. Creating a trust for the benefit of Reese's children requires a designated or identified

A) beneficiary.
B) executor.
C) administrator.
D) collateral heir.

Question 62

Karen dies with a will. Her husband predeceased her. They had three children, all of whom sadly died before Karen. Logan left behind 2 children, Pete and Rona. Maria had one child, Sam. Nell had 2 children, Tess and Uriah. Describe who inherits how much of Karen's estate if she gives it to her heirs per stirpes . Who inherits (and how much) if Karen gives it per capita ?

Question 63

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

A) a constructive trust.
B) a living trust.
C) a resulting trust.
D) a testamentary trust.

Question 64

Serena decides to create a trust for the benefit of her children. She deeds her property to the trust but retains the power to amend, alter, or revoke the trust. She also serves as the trustee and receives income earned by the property. This is

A) not a trust.
B) a revocable living trust.
C) an irrevocable living trust.
D) a constructive trust.

Question 65

Kit has two children, Lea and Merl, both of whom predecease Kit. Lea is survived by her son Nat. Merl is survived by her daughters Opal and Pearl. On Kit's death, if the distribution of the estate is per capita, Pearl will receive

A) everything.
B) nothing.
C) one-half.
D) one-third.

Question 66

The conduct of Edie and Floyd indicate an intention to create a trust. The circumstances raise an inference that Edie is holding legal title to property for Floyd's benefit. This is

A) not a trust.
B) a living trust.
C) a resulting trust.
D) a constructive trust.

Question 67

Idina executes a deed conveying ownership of her home to a trust for the benefit of her son Jim. The trust designates Idina as the trustee. When she dies, the house will pass without going through probate to

A) Jim.
B) the decedent's estate.
C) Idina's grandchildren.
D) the state.

Question 68

Gwen and Hunt are partners in Investment Associates. Hunt takes advantage of a partnership opportunity for personal gain that causes the firm's business to suffer. A court orders Hunt to hold the profits in trust for the partnership. This is

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

Question 69

Under intestacy laws, if a decedent has no heirs, then the property of his or her estate

A) passes to a person designated by a probate court.
B) reverts to the state.
C) devolves to a preselected charity.
D) is held in trust for future beneficiaries.

Question 70

Geoff opens an account for $250,000 at Home Federal Bank. The account provides that the funds are held in trust for Harriet, Geoff's daughter. This is

A) a constructive trust.
B) a living trust.
C) a resulting trust.
D) a testamentary trust.

Question 71

Flem owns shares of stock in Gas & Oil Inc. To create a trust with the stock for the benefit of his spouse Hanna, Flem must convey the shares to

A) a grantor.
B) a settlor.
C) a trustee.
D) a court.

Question 72

Aron owns several shares of stock with Beth, his sister, and an apartment building with Carl, his brother, in both cases as owners with rights of survivorship. Aron is a partner with Debra in Aron & Debra Accountants, and obtains a life insurance policy with Debra as the designated beneficiary. Aron 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, Aron's favorite cousin. After Aron writes his will, Carl dies but Aron does not revise his will. Aron, on his deathbed, makes a gift to the United Way. Will the stock, the apartment building, the proceeds from the life insurance policy, and the gift to the United Way become part of Aron's estate and be distributed under the will? If not, how will these items be distributed and to whom?