Question 1

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law imposes a trust even though no express trust exists.This is known as a(n) _____ trust.

Accepted Answer

A)   implied
B)   spendthrift
C)   Totten
D)   blindE) A) and B)
F) None of the above

Question 2

The person who creates a trust is known as the beneficiary.

Accepted Answer

A) True 
 B)False

Question 3

Incorporation by reference refers to:

Accepted Answer

A)   the specification of heirs in a will without naming them,e.g. ,to my children.
B)   the necessity that witnesses to a will do not benefit from it in any way.
C)   the inclusion of extrinsic documents in a will.
D)   the requirement that a will is executed according to state law.E) C) and D)
F) A) and D)

Question 4

John died without leaving a will.He left a wife and two children.He lived in Boise,Idaho,and he owned a ski condo in Aspen,Colorado.How will John's ski condo be distributed upon his death?

Accepted Answer

A)   The law of intestate succession of Idaho will be followed,because Idaho is the state where John was domiciled at the time of his death.
B)   The law of intestate succession of Colorado will be followed,because Colorado is where John's condo is located.
C)   The federal law of intestate succession will be followed,because John's property is located in more than one state.
D)   The property will escheat to the State of Idaho.E) A) and D)
F) B) and D)

Question 5

A trust that is established in a person's will and that takes effect only upon that person's death is called a(n) :

Accepted Answer

A)   inter vivos trust.
B)   spendthrift trust.
C)   Totten trust.
D)   testamentary trust.E) None of the above
F) All of the above

Question 6

The probate process involves collecting the decedent's property,paying off debts,and distributing the remaining property to others.

Accepted Answer

A) True 
 B)False

Question 7

A testator's children would be called his issue.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of a spendthrift trust?

Accepted Answer

A)   The settlor can make himself the beneficiary.
B)   It restricts the voluntary transfer of a beneficiary's interest.
C)   Assignees can claim rights to it.
D)   Creditors can claim rights to it.E) A) and C)
F) C) and D)

Question 9

When a person procures the transfer of property by means of fraud or duress,he becomes a(n) _____ and is under an obligation to return the property to its original owner.

Accepted Answer

A)   constructive trustee
B)   implied trustee
C)   executor
D)   administratorE) A) and B)
F) A) and C)

Question 10

If the deceased had no surviving relatives,the property goes to _____.

Accepted Answer

A)   the executor
B)   a charity picked by an assigned trustee
C)   his friends
D)   the stateE) A) and B)
F) A) and C)

Question 11

In some states the birth of a child will cause a will to be revoked.

Accepted Answer

A) True 
 B)False

Question 12

Sarah is 75 years old.She has a serious illness,but she does not want to be kept alive by extraordinary medical technology.Specifically,she does not want to be kept alive by a respirator.Which of the following should Sarah use in order to make sure that her wishes are followed?

Accepted Answer

A)   A living will
B)   A codicil
C)   A joint will
D)   A nuncupative willE) B) and C)
F) B) and D)

Question 13

A will confers no present interest in the testator's property.

Accepted Answer

A) True 
 B)False

Question 14

Thomas wants to create an inter vivos trust for the benefit of his adult children.In order to create a valid inter vivos trust,he must have a level of mental capacity that is the same as that required to:

Accepted Answer

A)   make a valid contract.
B)   make a valid will.
C)   stand trial in a criminal case.
D)   testify under oath in a criminal case.E) A) and B)
F) A) and C)

Question 15

A joint will:

Accepted Answer

A)   can only have a single beneficiary.
B)   is only valid if the testators are a married couple.
C)   is a single instrument that constitutes the will of both or all of the testators.
D)   cannot be changed once it is created.E) B) and C)
F) A) and D)

Question 16

A(n) _____ is a legal relationship in which a person who has legal title to property has the duty to hold it for the use or benefit of another person.

Accepted Answer

A)   accession
B)   lien
C)   trust
D)   codicilE) None of the above
F) C) and D)

Question 17

When Rita Ryan died,she left a will naming her children,John and Dale,as the sole beneficiaries.In her will,Rita designated John as the executor of her estate and excused John from posting a bond as executor.At the time of Rita's death,she owned a parcel of land with her sister,Ann,as joint tenants with right of survivorship.With respect to Rita's interest in the land,it will pass to:

Accepted Answer

A)   John and Dale outside Rita's estate by right of survivorship.
B)   John and Dale through Rita's estate after the will is probated.
C)   Ann through Rita's estate after the will is probated.
D)   Ann outside Rita's estate by right of survivorship.E) B) and C)
F) None of the above

Question 18

A _____ is oral in nature.

Accepted Answer

A)   nuncupative will
B)   holographic will
C)   notarial will
D)   self-proved willE) C) and D)
F) A) and B)

Question 19

A Totten trust is created to avoid fraud.

Accepted Answer

A) True 
 B)False

Question 20

In intestate succession what is the term for the individuals that stand to inherit the decedent's assets?

Accepted Answer

A)   Probate
B)   Heirs
C)   Incorporation
D)   ExecutorsE) None of the above
F) B) and C)

Exam 26: Estates and Trusts

John died without leaving a will.He left a wife and two children.He lived in Boise,Idaho,and he owned a ski condo in Aspen,Colorado.How will John's ski condo be distributed upon his death?

Correct Answer
verified

When a person procures the transfer of property by means of fraud or duress,he becomes a(n) _____ and is under an obligation to return the property to its original owner.

Correct Answer
verified

In some states the birth of a child will cause a will to be revoked.

Correct Answer
verified

Which of the following is true of a spendthrift trust?

Correct Answer
verified

A will confers no present interest in the testator's property.

Correct Answer
verified

A(n) _____ is a legal relationship in which a person who has legal title to property has the duty to hold it for the use or benefit of another person.

Correct Answer
verified

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law imposes a trust even though no express trust exists.This is known as a(n) _____ trust.

Correct Answer
verified

Incorporation by reference refers to:

Correct Answer
verified

If the deceased had no surviving relatives,the property goes to _____.

Correct Answer
verified

A _____ is oral in nature.

Correct Answer
verified

Correct Answer
verified

In intestate succession what is the term for the individuals that stand to inherit the decedent's assets?

Correct Answer
verified

A testator's children would be called his issue.

Correct Answer
verified

A trust that is established in a person's will and that takes effect only upon that person's death is called a(n) :

Correct Answer
verified

Thomas wants to create an inter vivos trust for the benefit of his adult children.In order to create a valid inter vivos trust,he must have a level of mental capacity that is the same as that required to:

Correct Answer
verified

Sarah is 75 years old.She has a serious illness,but she does not want to be kept alive by extraordinary medical technology.Specifically,she does not want to be kept alive by a respirator.Which of the following should Sarah use in order to make sure that her wishes are followed?

Correct Answer
verified

The probate process involves collecting the decedent's property,paying off debts,and distributing the remaining property to others.

Correct Answer
verified

A joint will:

Correct Answer
verified

A Totten trust is created to avoid fraud.

Correct Answer
verified

The person who creates a trust is known as the beneficiary.

Correct Answer
verified

Exam 26: Estates and Trusts

John died without leaving a will.He left a wife and two children.He lived in Boise,Idaho,and he owned a ski condo in Aspen,Colorado.How will John's ski condo be distributed upon his death?

Correct AnswerverifiedShow Answer

When a person procures the transfer of property by means of fraud or duress,he becomes a(n) _____ and is under an obligation to return the property to its original owner.

Correct AnswerverifiedShow Answer

In some states the birth of a child will cause a will to be revoked.

Correct AnswerverifiedShow Answer

Which of the following is true of a spendthrift trust?

Correct AnswerverifiedShow Answer

A will confers no present interest in the testator's property.

Correct AnswerverifiedShow Answer

A(n) _____ is a legal relationship in which a person who has legal title to property has the duty to hold it for the use or benefit of another person.

Correct AnswerverifiedShow Answer

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law imposes a trust even though no express trust exists.This is known as a(n) _____ trust.

Correct AnswerverifiedShow Answer

Incorporation by reference refers to:

Correct AnswerverifiedShow Answer

If the deceased had no surviving relatives,the property goes to _____.

Correct AnswerverifiedShow Answer

A _____ is oral in nature.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In intestate succession what is the term for the individuals that stand to inherit the decedent's assets?

Correct AnswerverifiedShow Answer

A testator's children would be called his issue.

Correct AnswerverifiedShow Answer

A trust that is established in a person's will and that takes effect only upon that person's death is called a(n) :

Correct AnswerverifiedShow Answer

Thomas wants to create an inter vivos trust for the benefit of his adult children.In order to create a valid inter vivos trust,he must have a level of mental capacity that is the same as that required to:

Correct AnswerverifiedShow Answer

Sarah is 75 years old.She has a serious illness,but she does not want to be kept alive by extraordinary medical technology.Specifically,she does not want to be kept alive by a respirator.Which of the following should Sarah use in order to make sure that her wishes are followed?

Correct AnswerverifiedShow Answer

The probate process involves collecting the decedent's property,paying off debts,and distributing the remaining property to others.

Correct AnswerverifiedShow Answer

A joint will:

Correct AnswerverifiedShow Answer

A Totten trust is created to avoid fraud.

Correct AnswerverifiedShow Answer

The person who creates a trust is known as the beneficiary.

Correct AnswerverifiedShow Answer

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