Business Law CH 49

Once assets have been assembled, creditors paid, and problem areas addressed, the _______ closes the estate by distributing the remaining property to those entitled to it. (Choose all the correct answers)

- personal representative - executor

The three major benefits of trusts include: _______. (Choose three best answers)

- protect against spendthrifts - probate savings - control distributions

These are the main requirements for the formation of a valid will include: _______. (Choose all the correct answers)

- requires testamentary intent - no fraud duress or undue influence - requires testamentary capacity

There are two main types of trusts, _______ and _______. (Choose two best answers)

- revocable - irrevocable

When you die, regardless of whether you left a will, your estate will go through a process called probate that _______, ______, and _______ your property. (Choose three correct answers)

- settles - manges - distributes

The primary purposes of the Uniform Probate Code were to _______ the probate process and to _______ and modernize the various state laws governing wills, trusts, and intestacy. (Choose two correct answers)

- streamline - standardize

A trust is essentially a fiduciary relationship between three parties: _______. (Choose three correct answers)

- trustor - beneficiary - trustee

The person creating the trust is called a(n) _______. (Choose all the correct answers)

- trustor - settlor - grantor

Under the Tax Cuts and Jobs Act, estates that exceed $11.2 M are subject to a _______ estate tax at the time of death if the death occurs between 2018 and 2025.

40%

True or false: Codicils are informal documents and not subject to the same formal requirements as a will, including testamentary capacity, and witnesses.

False

_______ occurs when the decedent dies without _______ or without otherwise fully disposing of his property during his lifetime.

Intestacy, leaving a will

_______ trusts, which typically cannot be changed or revoked, can be created upon a _______ death under the terms of a will or another trust. (Choose two correct answers)

Irrevocable, trustor's

_______ trusts generally do not shelter assets from the U.S. federal estate tax. (Choose two correct answers)

Living

_______ trusts (or living trusts) are created during the _______ lifetime and generally can be changed at any time while that party is still living. (Choose two correct answers)

Revocable, trustor's

True or false: Not all property interests are subject to probate.

True

The _______ is a comprehensive model act designed to help govern inheritance and decedents estates in the United States.

Uniform Probate Code

A(n) ________ is entitled to receive part or all of the property under the terms of the trust, either now or in the future.

beneficiary

An estate can be transferred at death by either: ______ or ______. (Choose two correct answers)

by a will by intestacy law

A testator can change his will using a(n) _______ which is a separate testamentary document whose purpose is to amend an existing will.

codicil

Freedom of disposition refers to the fundamental ______ principle that says testators should be free to dispose of their property at death in any way they want.

common law

If the _______ owns property in other states, a separate, "_______" probate and personal representative may have to be opened. (Choose two correct answers)

decedent, ancillary

One of the main duties of an executor is to ________.

disburse property to the beneficiaries

One of the most important principles in the law of wills is the notion of freedom of _______.

disposition

A(n) ______ includes the real and personal property that the decedent owns or has an interest in upon his death.

estate

A will has a(n) _______ who is manages the decedent's estate.

executor

A(n) _______ is the person named by the testator in his will to carry out the instructions in the will.

executor

If the decedent has not left a will, he is referred to as dying _______.

intestate

If you die without a valid will your estate will be managed by operation of _______ law.

intestate

Generally, _______ trusts are not considered part of the taxable estate so fewer taxes may be due at death.

irrevocable

Property held by the decedent as "________" may be subject to probate, but property held as a(n) "_______," is probably not.

tenants in common, joint tenancy

If the decedent has left a will, he is referred to as a(n) ________.

testator

A(n) _______ is considered a "probate-avoidance devices" that strategically transfers intergenerational wealth.

trust

The person or company who holds the legal title to the assets in a trust is called the _____ who is generally responsible for managing and distributing the assets in accordance with the terms of the trust.

trustee

Like the UPC, the UTC is a comprehensive model act governing the creation of _______ in the United States and is used by many states as a model law.

trusts

To be valid, a will must have been duly executed through a proper ceremony and signed by _______.

two to three witnesses

A(n) ______ is a legal document in which a person, the _______ expresses his wishes as to how his estate is to be distributed at death.

will, testator

If you die intestate (_______), your estate is then distributed according to the intestate laws of the state in which you resided.

without a will