Deck 39: Wills and Trusts

Question 1

A legacy is a gift of personal property by will. 

Answer 1

True

Question 2

An "X" can qualify as a signature on a will.

Answer 2

True

Question 3

A holographic will is a will expressed in 3D. 

Answer 3

False

Question 4

A gift of real estate by will is a bequest. 

Question 5

A decedent is a person who has died. 

Question 6

A will can be an informal document and need not follow state requirements. 

Question 7

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

Question 8

A will is required to be in writing only if real property is being transferred. 

Question 9

A testator is a decedent who dies without a will. 

Question 10

A lapsed legacy will occur if the testator predeceases the gift. 

Question 11

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

Question 12

A will must normally be attested to by two or three witnesses. 

Question 13

A reference in a will to a written memorandum that is not in the will renders the will invalid. 

Question 14

The testator's signature must appear on the will. 

Question 15

To probate a will means to release it to the media. 

Question 16

In most states,a person must be twenty-one years of age to execute a valid will. 

Question 17

A valid will is one that represents the maker's intention to transfer and distribute his or her property. 

Question 18

The recipient of a legacy is a devisee. 

Question 19

To "publish" a will means to record it in the appropriate county office. 

Question 20

In an abatement,the legatees receive increased benefits. 

Question 21

A trust created by a will to come into existence on the settlor's death is an irrevocable living trust. 

Question 22

A will can be partially revoked. 

Question 23

The trustee is the person who creates a trust.

Question 24

According to the terms of Ramona's will,specific gifts are made,and taxes and other estate expenses and debts are paid.The assets of Ramona's estate that remain are​ 

A) ​the bequest. 
B) ​the devise. 
C) ​the legacy. 
D) ​the residuary.

Question 25

A resulting trust arises from the conduct of the parties. 

Question 26

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

Question 27

A living trust is created by a grantor during his or her lifetime. 

Question 28

Once executed,a will cannot be revoked. 

Question 29

Shea makes a will.As a person who makes a will,Shea is​ 

A) ​an administrator. 
B) ​an executor. 
C) ​a beneficiary. 
D) ​a testator.

Question 30

A trust that a grantor executes orally in contemplation of immediate death is a testamentary trust. 

Question 31

A divorce does not necessarily revoke an entire will.

Question 32

Per capita is a method of dividing an intestate share of an estate. 

Question 33

A codicil is a clause in a will affirming an administrator's testamentary capacity. 

Question 34

Raleigh dies without a will.A court appoints Seth to handle the probate of Raleigh's estate.The administrator of the estate is​ 

A) ​Raleigh's closest blood relative. 
B) ​Raleigh. 
C) ​Seth. 
D) ​the court.

Question 35

Undue influence can occur when a named beneficiary is in a position to influence the making of a will. 

Question 36

When a person dies without a valid will,and no heirs exist,the state will assume ownership of the property. 

Question 37

A testator may revoke a will by intentionally tearing it. 

Question 38

Ross makes out a will in which Steve is appointed to administer the will.After Ross dies,Steve cannot administer the will,and a court appoints Terry to handle the probate of Ross's estate.In this situation,the executor is​ 

A) ​Ross. 
B) ​Steve. 
C) ​Terry. 
D) ​the court.

Question 39

The assets in Doug's estate,including the value of his home on Elm Street and its contents,are insufficient to pay in full all of the gifts provided for in his will.His heirs will receive​ 

A) ​full payment in order of seniority until the assets are exhausted. 
B) ​nothing-the assets will descend to the state. 
C) ​reduced benefits. 
D) ​the option of distributing the assets according to their wishes.

Question 40

The debts of a decedent must be satisfied out of his or her estate. 

Question 41

Giovanni opens an account for $250,000 at Home Federal Bank.The account pro-vides that its funds,which represent most of Giovanni's assets,are held in trust for Harriet,the nurse who cares for Giovanni during the last years of his life.Less than a year later,Giovanni dies,and Harriet withdraws the funds.These facts indicate​ 

A) ​a will substitute. 
B) ​a holographic will. 
C) ​per stirpes distribution. 
D) ​undue influence.

Question 42

Kendall executes a separate written instrument to amend her prior will.This separate document is​ 

A) ​a bequest. 
B) ​a codicil. 
C) ​a devise. 
D) ​a holographic will.

Question 43

Meryl's daughter Nixie dies before Meryl,leaving Nixie's son Orman.On Meryl's death,it is learned that her will gives "to my daughter Nixie my farm near Pratt,Kansas." Most likely,the gift of the farm will​ 

A) ​abate. 
B) ​not lapse. 
C) ​lapse in full. 
D) ​lapse in part.

Question 44

Regina handwrites her entire will on a legal pad.Regina's will is 

A) ​invalid. 
B) ​a holographic will. 
C) ​a nonholographic will. 
D) ​residuary.

Question 45

Jill handwrites what she intends to be her will on a blank sheet of paper in ink.If Jill has capacity,this "will" is valid​ 

A) ​under no circumstances. 
B) ​if Jill signs it, without more. 
C) ​if Jill signs it and at least three witnesses sign it. 
D) ​if Jill signs it, at least three witnesses sign it, and it is filed in the appropriate state or county office.

Question 46

Paxton makes a gift of real estate in his will to Orinda.This gift is​ 

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

Question 47

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

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

Question 48

Ruth executes a will in 2012 naming her nephew Stan as sole beneficiary.In 2014,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 49

Martin's will states,"I leave my gold pocket watch to Laurie." Laurie dies before Martin.This creates​ 

A) ​an abatement. 
B) ​a general devise. 
C) ​a lapsed legacy. 
D) ​a residuary legacy.

Question 50

Kim is asked to serve as a witness to Lian's will.To qualify,Kim must be​ 

A) ​a collateral heir. 
B) ​a lineal descendant. 
C) ​at least eighteen years old. 
D) ​mentally competent.

Question 51

In his will,Bryson makes a gift of $12,000 to Curtis.This is​ 

A) ​a general bequest. 
B) ​a general devise. 
C) ​a specific bequest. 
D) ​a specific devise.

Question 52

Lani is asked to serve as a witness to Mona's will.To qualify,Lani must be​ 

A) ​a collateral heir. 
B) ​a lineal descendant. 
C) ​eighteen years of age or older. 
D) ​mentally competent.

Question 53

In his will,Jason leaves $10,000 to each of his three children.However,after Jason dies and all his debts are paid,there is only $9,000 left in his estate.Each child will receive​ 

A) ​$10,000. 
B) ​$3,000. 
C) ​$1,000. 
D) ​$500.

Question 54

Graham's will leaves $100,000 to his two children,Harry and Ida.When Graham dies,he only has $80,000 to honor his bequests.Harry and Ida each receive $40,000.This is 

A) ​a constructive trust. 
B) ​an abatement. 
C) ​a violation of the law. 
D) ​a devise.

Question 55

For Melinda's will to be valid,she 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 56

Jackie's will states,"I leave my red sports car to Angela." This is​ 

A) ​a specific legacy. 
B) ​a devise. 
C) ​an execution. 
D) ​a general legacy.

Question 57

Tom executes a will in which he leaves everything to his spouse,Victoria,and in which he appoints Warren to administer his estate.This must be signed by​ 

A) ​Tom only. 
B) ​Tom and Victoria only. 
C) ​Tom, Victoria, and Warren. 
D) ​a probate judge.

Question 58

Jaime is fifteen years old,Leo is eighteen years old and Bev is twenty-one years old.Phil is looking for witnesses for his will.Of the three persons mentioned,the witnesses can include​ 

A) ​only Jaime. 
B) ​only Jaime and Leo. 
C) ​only Leo and Bev. 
D) ​Jaime, Leo, and Bev.

Question 59

The owners of Designer Software,Inc.,want to execute wills.Eve is fifteen years old,Fran is seventeen,and Gail is nineteen.In most states,those with the capacity to execute a will are​ 

A) ​all of the owners of Designer Software. 
B) ​Fran and Gail only. 
C) ​Gail only. 
D) ​none of the owners of Designer Software.

Question 60

Before dying from injuries suffered in an accident,Lynda tells her cousin Marina that on her death,Natalia is to be given possession of Lynda's farm.In most states,this oral "will" would be​ 

A) ​not permitted. 
B) ​permitted but not probated. 
C) ​valid only because its witness is not its beneficiary. 
D) ​valid only because it does not involve a transfer of personal property.

Question 61

Gary dies without a will.His survivors include his spouse Helen and his two children,Irene and John.Under applicable laws,of Gary's estate,Helen will probably receive​ 

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

Question 62

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 63

Kit has two children,Lea (the eldest)and Merl,both of whom predecease Kit.Lea is survived by a son,Nat,and Merl by two daughters,Opal and Pearl.On Kit's death,if the estate is distributed per capita​ 

A) ​Nat will receive one-half of the estate, and Opal and Pearl will each receive one-fourth. 
B) ​Nat will receive the entire estate. 
C) ​the grandchildren will each receive one-third of the estate. 
D) ​the grandchildren will not receive anything.

Question 64

Maya dies without a will.The distribution of Maya's estate is prescribed by​ 

A) ​Maya's closest relatives. 
B) ​durable powers of attorney. 
C) ​intestacy laws. 
D) ​will substitutes.

Question 65

Gus dies intestate.The debts of the estate are paid by Gus's​ 

A) ​estate, after its assets are distributed. 
B) ​estate, before its assets are distributed. 
C) ​heirs, after the estate's assets are distributed. 
D) ​heirs, before the estate's assets are distributed.

Question 66

Finnegan dies without a will,with no surviving spouse or child.Finnegan's survivors include his grandson Gallagher,his niece Hailey,and his cousin Innis.In most states,his estate would pass to 

A) ​Gallagher. 
B) ​Hailey. 
C) ​Innis. 
D) ​the state.

Question 67

Lee's will provides for a distribution of Lee's property.Who does these things,and what are the steps involved?​

Question 68

Ann and Burt are partners in Delta Associates.Burt takes ad-vantage of a partnership opportunity for personal gain that causes Delta's business to suffer.A court orders Burt 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

Aron owns a certificate of deposit with Beth,his sister,and an apartment building with Carl,his brother,in both cases as a joint tenant.Aron,a partner with Debra in Aron & Debra Accountants,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,Aaron's favorite cousin.Carl dies.Aron,on his 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 Aron's estate and be distributed under the will? If not,how will these items be distributed and to whom?​

Question 70

Adam has two children,Bob (the eldest)and Carol,both of whom predecease Adam.Bob is survived by a daughter,Dina,and Carol by two sons,Ed and Fred.On Adam's death,if the estate is distributed per stirpes​ 

A) ​Dina will receive the entire estate. 
B) ​Dina will receive one-half of the estate, and Ed and Fred will each receive one-fourth. 
C) ​each grandchild will receive one-third of the estate. 
D) ​the grandchildren will not receive anything.

Question 71

Callahan dies without a will,survived by his granddaughter Doreen and her brother Egan.Doreen and Eganare Callahan's​ 

A) ​collateral heirs. 
B) ​legacy. 
C) ​trustees. 
D) ​lineal heirs.

Question 72

Edie holds title to Floyd's property under circumstances that,although nothing is express,indicate this is apparently only for Floyd's benefit.This is​ 

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