Deck 36: Estates and Trusts

Question 1

The standard for mental capacity to make a will is fairly low.

Answer 1

True

Question 2

The rights of beneficiaries are superior to the rights of creditors under a will.

Answer 2

False

Question 3

A nuncupative will is a will that is written and signed in the testator's handwriting.

Answer 3

False

Question 4

Federal inheritance taxes are imposed on a person who receives a statutory share from an estate.

Question 5

A person who inherits property under a will takes the property free of all outstanding claims against the property.

Question 6

"Testamentary capacity" refers to:

A)the legal capacity to make a valid will.
B)the limit on how much property can be inherited by a given individual.
C)the ability to give gifts to the testator's issues or descendants.
D)the lack of awareness of the value of the property by the testator.

Question 7

Under the rule against perpetuities,when a private trust is created,the beneficiary must be known at the time.

Question 8

A person may amend her valid will by merely striking out objectionable provisions and inserting new provisions.

Question 9

Life insurance proceeds are usually controlled by:

A)statutes.
B)the provisions of a will.
C)the insured's designation of beneficiaries.
D)the right of survivorship.

Question 10

While on his deathbed,Larry's grandfather revoked all his prior wills and wrote out a new will in his own handwriting,leaving everything to the local animal shelter in trust for his dog,Fido.Grandfather signed the will and mailed it to the animal shelter before he died.Larry wants to challenge the new will.Which of the following statements is true?

A)Grandfather did not have the legal right to revoke his prior will without notice to Larry and the other beneficiaries.
B)If his grandfather lacked the mental capacity to understand his actions,the new will is invalid.
C)The holographic will would not be valid in any state because it was executed without the presence of witnesses.
D)The will would be treated as valid only if signed by two or more interested witnesses.

Question 11

A trustee owes a duty of loyalty to the beneficiaries.

Question 12

A durable power of attorney terminates upon the incapacity of the principal.

Question 13

Intestacy statutes are designed to reflect the presumed intent of the deceased.

Question 14

A constructive trust is created by operation of law to avoid fraud.

Question 15

A will proved by an affidavit sworn to and signed by the testator and the witnesses,at the time the will was executed,is called a self-proving affidavit.

Question 16

If a person who is entitled to a share of the decedent's estate survives the decedent but dies before receiving her share,her share in the decedent's estate becomes part of her own estate.

Question 17

Under the laws of some states,the birth of a child after the execution of a will may operate as a partial revocation of the will.

Question 18

Jim and Terry were married and had three children.Jim and Terry owned their home together as tenants in the entirety.If Jim dies intestate,under the laws of most states,who owns the home?

A)Terry owns one-half and the children each own a one-sixth share of the home.
B)Terry and each of the children own one-fourth share of the home.
C)Each of the children own one-third of the home.
D)Terry owns the home by right of survivorship.

Question 19

To have testamentary capacity,a person must:

A)not move in and out of periods of lucidity.
B)not be less than 20 years of age.
C)be in perfect mental health.
D)be of sound mind and of legal age.

Question 20

A joint will can never be revoked.

Question 21

Under the Patient Self-Determination Act,health care providers must:

A)provide oral information to adults receiving medical care about their rights to accept or refuse medical treatment.
B)document in the patient's medical record whether the patient has executed an advance directive.
C)must ensure compliance with federal laws concerning advance directives.
D)contact the patient's attorney for consenting or withholding consent to surgery.

Question 22

Who among these is responsible for administering a person's will and settling their estate?

A)An arbitrator
B)The attorney general
C)A Probate court
D)A Family court

Question 23

Which of the following is an example of advance directives?

A)Intestacy
B)Codicil
C)Escheat
D)Living will

Question 24

Children,born or adopted after a will has been executed are called:

A)presumptive heirs.
B)pretermitted children.
C)illegitimate children.
D)nuncupative heirs.

Question 25

The "execution of a will":

A)must strictly meet all the formalities required by state law,or it is void.
B)must partially meet general requirements of state law,or it is void.
C)must strictly meet all the formalities required by federal law,or it is void.
D)must partially meet the general requirements of federal law,or it is void.

Question 26

A codicil is a(n):

A)amendment to a will.
B)automatic revocation of a will.
C)trust.
D)creditor's claim against the estate.

Question 27

A will,might be recognized by the state even if it does not meet the formalities required by law,if it is a:

A)holographic will.
B)living will.
C)joint will.
D)mutual will.

Question 28

If a person wants to make a change to their will,the person can do so by:

A)appearing in court.
B)executing a codicil.
C)by posting legal notice of amendment.
D)by striking out objectionable provisions.

Question 29

In the states that recognize holographic wills,such wills will be valid:

A)if they do not evidence testamentary intent.
B)if they are in the handwriting of the testator.
C)if only the material portions in the will are typed.
D)if they are typed and evidence testamentary intent.

Question 30

When a person dies intestate,the property the person owns:

A)is distributed to the people designated as the intestate's heirs.
B)will be distributed according to the law of the state in which the person is domiciled.
C)escheats to the state.
D)will go to the biological children,not the adopted children.

Question 31

Under the doctrine of cy pres,when property is given in trust to be applied to a particular charitable purpose that becomes impossible,impracticable,or illegal to carry out and the settler has not specifically provided for a substitute beneficiary:

A)the trust will automatically fail.
B)the court will direct the application of the property to some charitable purpose that falls within the settlor's general charitable intention.
C)the court will direct that the property be directed to the state for use in a socially-responsible and "reasonably prudent" manner.
D)the original beneficiaries can use the property for a charitable purpose.

Question 32

Alma was suffering from a terminal disease.Because she distrusted attorneys,she wrote a statement in her own handwriting,labeling it "My Last Will and Testament." The statement contained a provision specifying that Alma wanted all of her property to go to her church at her death.She signed the statement,stored it in her jewelry box and she told her friend Willa of its location.When Alma died,Willa produced Alma's statement.Willa is now attempting to have the statement admitted to probate as Alma's will.Alma's grown children claim that Alma died intestate and that they should inherit her property.If Alma's state recognizes holographic wills:

A)Alma's will is void and her children will inherit.
B)the church will inherit Alma's property.
C)Alma's children and the church will split Alma's property under the doctrine of nuncupative.
D)the will can be declared void and the property can go to the state.

Question 33

A nuncupative will:

A)must be in writing.
B)is valid to transfer personal and real property.
C)must be signed by the testator.
D)is valid when made by soldiers or sailors.

Question 34

Which of the following is true of a joint will?

A)Whether a joint will is revocable depends only on the language of the will.
B)The mere fact that a joint will has been executed creates the presumption of a contract not to revoke the will.
C)Underlying a joint will is an agreement on a common plan.
D)A testator who has made a joint will cannot change the will later under any circumstances.

Question 35

Which of the following is a formality usually required by state law for the creation of a valid will?

A)The will must be witnessed and signed by at least two persons who stand to inherit under the will.
B)Notice of the making of the will must be published in the newspaper.
C)The will must be signed by the testator or by someone else at the testator's direction.
D)The testator should declare,after the signing,that the instrument is his will.

Question 36

Which of the following is true of the right of a widow on a life estate?

A)The widow gets a one-third interest in fee simple,only in the real property owned by the testator during their marriage.
B)The widow has the right to a life estate in two-third of the lands owned by her husband at the time of his death.
C)The widow has the right to a life estate in one-third of the lands owned by her husband during their marriage.
D)The widow gets a one-third interest in fee simple in the real and personal property owned by her husband at the time of his death.

Question 37

Under the Uniform Simultaneous Death Act,if a husband and wife die under circumstances that make it difficult or impossible to determine who died first:

A)the husband's property will go to his relatives and the wife's property to her relatives.
B)the property will automatically be distributed among the husband's siblings.
C)the property will revert to the state.
D)the property will automatically be distributed among the husband's relatives.

Question 38

"Domicile" refers to a person's:

A)permanent home.
B)permanent and temporary residences.
C)state,where he probates his will.
D)a person's necessity to make a particular state,home.

Question 39

Benny is the sole beneficiary of Paul's trust.In this trust,Benny can:

A)also serve as the sole trustee.
B)not serve as the sole trustee.
C)serve as both trustee and testator.
D)serve as trustee during the trustor's lifetime.

Question 40

In terms of intestacy statutes,adopted children:

A)will inherit from their biological parents.
B)will inherit from their adopted parents.
C)will inherit from their adopted parents but a share lesser than the adopted parents' biological children.
D)will not inherit anything from anyone.

Question 41

Name the basic formalities required by most states in the execution of a will.

Question 42

Miriam established a trust by placing substantial funds in a trust account for the benefit of her son,Robert.Miriam appointed her brother,Fred,as trustee for the trust.In the trust document,she did not expressly define Fred's powers as trustee,or his duties.Under these circumstances:

A)Fred must use a reasonable degree of skill,judgment,and care in the exercise of his duties.
B)Fred does not owe any fiduciary duty to the beneficiary.
C)Fred has the right to commingle his property with the property he holds in trust.
D)Fred cannot delegate ministerial duties.

Question 43

Spendthrift clauses:

A)operate to restrict the voluntary or involuntary transfer of a beneficiary's interest in a trust.
B)give the trustee discretion concerning the amount of principal or income to be paid to a beneficiary.
C)enable a person to put their own property beyond the claims of their own creditors.
D)prevent divorced spouses from claiming alimony.

Question 44

Explain durable power of attorney for health care.

Question 45

Holographic wills are valid under which conditions?

Question 46

Which of the following is one of the requirements for forming an express trust?

A)The settlor need not necessarily attain the age required by state law for the creation of valid wills and contracts.
B)The trust cannot be created for a reason that is contrary to public policy.
C)The settler must name a trustee for the trust and a substitute trustee in the event the named trustee refuses to act.
D)The beneficiaries cannot be members of a specific class,such as "my children."

Question 47

Describe the responsibilities of personal representative in the administration of an estate.

Question 48

Define a constructive trust and the duty it imposes on the constructive trustee.

Question 49

Lloyd deposits money in First Bank,in trust for his daughter,Kelly.At Lloyd's death,if he has not revoked this trust then:

A)the money in the account will belong to Kelly.
B)the money in the account will be transferred to a charitable organization.
C)the money in the account will belong to the bank.
D)the money will automatically belong to the state and will be used for the benefit of the society.

Question 50

Which of the following creates a revocable living trust?

A)Doctrine of cy pres
B)Express trust
C)Spendthrift trust
D)Totten trust