Question 1

Lyle and Susie had three children: Seed,Sierra,and Shasta.All three children are adults.Although Sierra and Shasta each attend college,Seed hasn't quite found himself.Seed tours with various music bands.He plays guitar,spends most of the year hiking the Cascade Mountains,and plans to live on a commune in Big Sur,California.Lyle and Susie visited their attorney to plan their estates.They wish to leave equal shares of their estates to their children,but they are concerned that Seed will not be able to handle an inheritance.What should they do with respect to Seed's share?

Accepted Answer

Lyle and Susie can establish a spendthri...

Question 2

A person who is appointed under a will to look after the property of the deceased person is known as a(n) :

Accepted Answer

A)   obligee.
B)   estate agent.
C)   legal heir.
D)   executor.E) A) and D)
F) None of the above D

Question 3

A personal representative to an estate is also known as an executor.

Accepted Answer

A) True 
 B)False

Question 4

A trust that is established and effective during the settlor's lifetime is known as a(n) _____ trust.

Accepted Answer

A)   causa mortis
B)   per capita
C)   per stirpes
D)   inter vivosE) B) and C)
F) A) and B) D

Question 5

The property held in trust is called the _____.

Accepted Answer

A)   attachment
B)   lien
C)   corpus
D)   accessionE) A) and D)
F) All of the above

Question 6

Which of the following is not an essential element in the formation of a trust?

Accepted Answer

A)   Conveyance of specific property
B)   Proper purpose
C)   Legal capacity
D)   Appointment of trusteeE) B) and C)
F) A) and D)

Question 7

A distinguishing feature between the making of an inter vivos gift and the creation of a trust is that:

Accepted Answer

A)   a gift may be made orally whereas a trust must be in a signed writing.
B)   a gift is irrevocable whereas a trust may be revoked in certain cases.
C)   in order to create a valid trust,the creator must receive some form of consideration.
D)   the beneficiary of a trust must be notified of the trust's creation.E) All of the above
F) A) and B)

Question 8

An estate is all of the property that an individual owns.

Accepted Answer

A) True 
 B)False

Question 9

At the time of interpreting the will,the judge gives preference to the statements of the beneficiaries rather than the intention of the testator.

Accepted Answer

A) True 
 B)False

Question 10

If an ambiguity or conflict arises when people read and/or interpret a will,courts will:

Accepted Answer

A)   look for evidence of the intent of the testator within the will.
B)   ask the family members or beneficiaries for their preference(s) .
C)   appoint a probate referee to decide the future of the will.
D)   declare it void or invalidate the will due to ambiguity in the will.E) All of the above
F) B) and D)

Question 11

A person can have multiple domiciles at a time.

Accepted Answer

A) True 
 B)False

Question 12

A will that is not executed with the formalities required by state law is void.

Accepted Answer

A) True 
 B)False

Question 13

If a person dies intestate,his real property will be distributed:

Accepted Answer

A)   to the state in which the property is located.
B)   to the state of the person's domicile.
C)   according to the law of the state in which the property is located.
D)   according to the law of the state of the person's domicile.E) None of the above
F) B) and D)

Question 14

Which of the following arises when there has been an incomplete disposition of trust property and the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment?

Accepted Answer

A)   Express trust
B)   Spendthrift trust
C)   Totten trust
D)   Resulting trustE) B) and C)
F) C) and D) D

Question 15

What is a gift of real property called?

Accepted Answer

A)   Residuary
B)   Estate
C)   Bequest
D)   DeviseE) C) and D)
F) None of the above

Question 16

Joe Smith has just died.Three months ago,when he knew that his death was impending,Joe established a spendthrift trust for the protection of his 16-year old son Bobby.The trust property consists mainly of $500,000 in investment securities.The trustee is Jack Purdy,a CPA.The trust agreement does not discuss the trust's termination.Answer the following questions regarding the trust.Can Jack invest trust assets differently than Joe invested them? For example,can he sell trust securities and buy others? Why or why not? Must Jack hire an investment professional to make trust investments?

Accepted Answer

Jack must use a reasonable degree of ski...

Question 17

In order to be valid,a holographic will must be typed.

Accepted Answer

A) True 
 B)False

Question 18

Under the doctrine of cy pres,the trust will not fail if the settlor indicated a general intention to devote the property to charitable purposes.

Accepted Answer

A) True 
 B)False

Question 19

A Totten trust is created when a person:

Accepted Answer

A)   deposits money in a bank for the benefit of another.
B)   directs in his will that a trust be created upon that person's death.
C)   executes the creation using a holographic will.
D)   opens a trust only for the benefit of poor people.E) All of the above
F) B) and D)

Question 20

Grandfather Summers had two children,Mary and Bill.Mary,her father's favorite,has one child,Margaret.Bill has two children,Jill and John.Mary and Bill die before Summers (in legal terms,predecease him) ,but all three grandchildren are living at the time of his death.Summers' estate has to be divided per capita.Who will get what?

Accepted Answer

A)   The spouses of Mary and Bill will inherit the estate.
B)   Mary's children will inherit the major share of the estate.
C)   All three grandchildren will get an equal share.
D)   The estate will go to a trust because Mary and Bill are dead.E) None of the above
F) A) and D)

Exam 26: Estates and Trusts

Correct Answer
verified
Lyle and Susie can establish a spendthri...
View Answer

A person who is appointed under a will to look after the property of the deceased person is known as a(n) :

Correct Answer
verified
D

A personal representative to an estate is also known as an executor.

Correct Answer
verified

A trust that is established and effective during the settlor's lifetime is known as a(n) _____ trust.

Correct Answer
verified
D

The property held in trust is called the _____.

Correct Answer
verified

Which of the following is not an essential element in the formation of a trust?

Correct Answer
verified

A distinguishing feature between the making of an inter vivos gift and the creation of a trust is that:

Correct Answer
verified

An estate is all of the property that an individual owns.

Correct Answer
verified

At the time of interpreting the will,the judge gives preference to the statements of the beneficiaries rather than the intention of the testator.

Correct Answer
verified

If an ambiguity or conflict arises when people read and/or interpret a will,courts will:

Correct Answer
verified

A person can have multiple domiciles at a time.

Correct Answer
verified

A will that is not executed with the formalities required by state law is void.

Correct Answer
verified

If a person dies intestate,his real property will be distributed:

Correct Answer
verified

Which of the following arises when there has been an incomplete disposition of trust property and the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment?

Correct Answer
verified
D

What is a gift of real property called?

Correct Answer
verified

Correct Answer
verified
Jack must use a reasonable degree of ski...
View Answer

In order to be valid,a holographic will must be typed.

Correct Answer
verified

Under the doctrine of cy pres,the trust will not fail if the settlor indicated a general intention to devote the property to charitable purposes.

Correct Answer
verified

A Totten trust is created when a person:

Correct Answer
verified

Correct Answer
verified

Exam 26: Estates and Trusts

Correct AnswerverifiedLyle and Susie can establish a spendthri...View AnswerShow Answer

A person who is appointed under a will to look after the property of the deceased person is known as a(n) :

Correct AnswerverifiedD

A personal representative to an estate is also known as an executor.

Correct AnswerverifiedShow Answer

A trust that is established and effective during the settlor's lifetime is known as a(n) _____ trust.

Correct AnswerverifiedD

The property held in trust is called the _____.

Correct AnswerverifiedShow Answer

Which of the following is not an essential element in the formation of a trust?

Correct AnswerverifiedShow Answer

A distinguishing feature between the making of an inter vivos gift and the creation of a trust is that:

Correct AnswerverifiedShow Answer

An estate is all of the property that an individual owns.

Correct AnswerverifiedShow Answer

At the time of interpreting the will,the judge gives preference to the statements of the beneficiaries rather than the intention of the testator.

Correct AnswerverifiedShow Answer

If an ambiguity or conflict arises when people read and/or interpret a will,courts will:

Correct AnswerverifiedShow Answer

A person can have multiple domiciles at a time.

Correct AnswerverifiedShow Answer

A will that is not executed with the formalities required by state law is void.

Correct AnswerverifiedShow Answer

If a person dies intestate,his real property will be distributed:

Correct AnswerverifiedShow Answer

Which of the following arises when there has been an incomplete disposition of trust property and the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment?

Correct AnswerverifiedD

What is a gift of real property called?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJack must use a reasonable degree of ski...View AnswerShow Answer

In order to be valid,a holographic will must be typed.

Correct AnswerverifiedShow Answer

Under the doctrine of cy pres,the trust will not fail if the settlor indicated a general intention to devote the property to charitable purposes.

Correct AnswerverifiedShow Answer

A Totten trust is created when a person:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Lyle and Susie can establish a spendthri...
View Answer

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D

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D

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D

Correct Answer
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Jack must use a reasonable degree of ski...
View Answer

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Correct Answer
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