Deck 52: B: Wills and Trusts

Question 1

Most states permit a nuncupative will if it is made before witnesses.

Answer 1

False

Question 2

One who dies without a valid will creates a bequest.

Answer 2

False

Question 3

A resulting trust is a trust implied in law.

Answer 3

True

Question 4

A living trust cannot be irrevocable.

Question 5

An administrator is a personal representative appointed by a court for a dece?dent who dies without a will.

Question 6

A spendthrift trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.

Question 7

If a trust provides for its termination on the beneficiary's death,the death will end the trust.

Question 8

If no children or grandchildren survive a decedent who dies without a will,a surviving spouse succeeds to the entire estate.

Question 9

The property of a decedent escheats to his or her designated heirs.

Question 10

A will is a testamentary disposition of property.

Question 11

For a will to be valid,a testator must be of "sound mind" at the time of death.

Question 12

A testator may revoke a will by tearing it.

Question 13

The joint ownership of property is a method of accomplishing a property transfer without a will.

Question 14

A will is probated in part to establish its validity.

Question 15

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

Question 16

When there is no surviving spouse or child,the next in the order of inheritance are the grandchildren.

Question 17

A "living will" is a will drafted and executed during a decedent's life.

Question 18

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

Question 19

A codicil is a will substitute that avoids the cost of probate.

Question 20

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

Question 21

Max is married to Nina.Max executes a will,leaving certain property to Nina and other property to Opal,who is unrelated to Max and Nina.On Max's death

A)neither Nina nor Opal can renounce their shares.
B)Nina and Opal can both renounce their shares.
C)Nina can take only what the will provides but Opal can renounce her share.
D)Opal can take only what the will provides but Nina can renounce her share.

Question 22

Char's daughter Delsey dies before Char,leaving Delsey's son Egor.On Char's death,it is learned that Char's will gives "to my daughter Delsey my ranch in Mesquite County,Texas." Most likely,the gift of the ranch

A)abates.
B)will not lapse.
C)lapses in full.
D)lapses in part.

Question 23

Clayton dies without a will.The distribution of Clayton's property,including his farm near Lincoln,Nebraska,is prescribed by

A)a court-appointed executor.
B)federal probate statutes.
C)state intestacy laws.
D)Clayton's relatives.

Question 24

Eighty-year-old Clark exhibits confusion,forgetfulness,and disorienta?tion.To Clark's doctor Dave,the symptoms indicate dementia.Elsa,who has significant contact with Clark,believes that he is in a state of men?tal decline.These facts indicate

A)an urgency that Clark distribute his assets.
B)Clark's lack of capacity.
C)Dave's misdiagnosis.
D)Elsa's intent to take advantage of Clark.

Question 25

Lost in a canyon near Gila,Arizona,Hedy writes her will in crayon,on a paper bag,while Ivan states orally how he wants his estate distributed.Most states do not permit

A)an olographic will.
B)a nuncupative will.
C)a will written on a paper bag.
D)a will written in crayon.

Question 26

Benny dies without a will,with no surviving spouse or child.Benny's survivors in?clude his granddaughter Callie,his nephew Doug,and his cousin Earl.In most states,his estate would pass to

A)Callie.
B)Doug.
C)Earl.
D)the state.

Question 27

Cliff dies without a will.His survivors include his spouse Dana and his two children,Efrem and Fay.Under applicable laws,of Cliff's estate,Dana will probably receive

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

Question 28

Juli types onto a computer what she intends to be "My Will" and prints it out.Juli has capacity."My Will" is

A)invalid.
B)valid if Juli signs it.
C)valid if Juli signs it and has three witnesses sign it.
D)valid if Juli signs it,has three witnesses sign it,and files it in a cer?tain state office.

Question 29

Dyan executes her will to give "to my nephew Esau my stock in Fargo,Inc." Later,Dyan writes separately,with the same formalities required for a will,to leave the stock to her niece Ginny and cash to Esau.This writing

A)does not affect the will's gift of the stock to Esau.
B)requires a gift of the stock in equal shares to Esau and Ginny.
C)revokes the whole will,which must be redrafted.
D)revokes the will's gift of the stock to Esau.

Question 30

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

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

Question 31

For Troy'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 32

Keri's will states,"I give to my sister Liz my condominium in Malibu,California." This is

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

Question 33

Dan makes a will leaving a specific sum of money to each surviving rela?tive.The assets of Dan's estate are not enough to make all of the gifts in full.This situation requires

A)an abatement.
B)a publication.
C)a residuary.
D)a revocation.

Question 34

Lolly employs a variety of will substitutes to transfer her assets,which consist principally of cash and investments in mutual funds,outside the probate process.In this situation,the most important consideration is to

A)avoid the cost of probate.
B)ensure that the arrangements benefit the intended persons.
C)establish grounds for a court's review of the arrangements.
D)follow the same principles as apply to testamentary transfers.

Question 35

Filbert wants to put some money in trust for his son Gregor,but he does not want to lose full control over the funds in case he may need them in the future.One trust suited to Filbert's needs is

A)a charitable trust.
B)a constructive trust.
C)a spendthrift trust.
D)a Totten trust.

Question 36

Gwyn dies without a will,survived by her nephew Halsey and her aunt Ilene.Halsey and Ilene are Gwyn's

A)collateral heirs.
B)grantors.
C)testators.
D)lineal descendants.

Question 37

One summer afternoon,Eve,Faruk,and Galen decide to each draft and sign a "Last Will and Testament." Eve is fif?teen years old,Faruk is seventeen,and Galen is nineteen.In most states,those with the capacity to execute a will would be

A)Eve,Faruk,and Galen.
B)Faruk and Galen only.
C)Galen only.
D)not Eve,Faruk,or Galen.

Question 38

Gus dies without a will.Under applicable laws,the debts of his estate are paid by Gus's

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

Question 39

Philomena dies without a will.A court appoints Quigley to handle the probate of Philomena's estate.The administrator of the estate is

A)Philomena's closest blood relative.
B)Philomena.
C)Quigley.
D)the court.

Question 40

In his will,Vigor makes a gift of $10,000 to Wylie.This is

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

Question 41

Tundi's will provides for a distribution of her assets on her death.Who "distributes" this property,and what are the steps involved?

Question 42

Dharma is the trustee of a trust in which Elin has a life estate and Frank has the remainder interest.The trust property is a farm.The farm is leased to Glen,who pays the rent to the trust.Property taxes are paid annually on the farm.Long-term improvements are occasionally made and paid for.A section of the farm's land is sold to Haruo,one of the farm's neigh?bors.How are the payments for taxes and improvements classified (ordi?nary or extraordinary)? How are the receipts of rent and the pro?ceeds from the land sale classified? To whom are these costs and benefits allocated?