Chapter 31 Estate Planning

Parents may not disinherit their minor children without good reason.

False

The Uniform Probate Code has been adopted in all states.

False

The only function of a will is to dispose of a person's property upon death.

False

Legal requirements for a will depend on state law, but generally include all but which of the following?

Signatures of at least three witnesses

Which of the following is NOT required to create a valid trust?

witnesses

An executor who is related to the testator is not entitled to compensation.

False

Per capita means each heir gets an equal share of an estate.

True

Property of a person who dies without a will is distributed according to intestacy laws.

True

Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a will, the court may not enforce the will.

True

The percentage of people dying without a will is approximately

65%

Which of the following does NOT act as a revocation of a will?

Creating a codicil

A later will revokes a prior will only if that revocation is clearly stated.

False

Myron had two children, Cheryl and Pete, who predeceased him. Cheryl had three children and Pete had one child. Myron had a will. Which of the following is true?

If Myron's will indicates that the issue are to inherit per stirpes, Pete's child will receive one half of Myron's estate.

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

True

Jacob has been quite ill. When three of his neighbors come to visit one day, he tells them that he is dying and that he wants them to witness his oral will. In some states, he can validly dispose of his personal property by his witnessed, oral statements.

True

Lying on her hospital bed alone one night, Phyllis grabs a pen and paper. With the last of her strength, she wrote her last will and testament leaving all her worldly possessions to her next-door neighbor, Aaron. This type of will is

a holographic will

A trust created in a will is

a testamentary trust

In order to travel extensively and not worry about handling her affairs, Lee transfers most of her assets into a trust, with her bank serving as trustee. She has created ________ trust.

an inter vivos

Joel is displeased with his son's lifestyle choices and, instead of dividing his estate, Joel wants to leave all of his property to his daughter, Marie, when he dies. Joel may

disinherit his son for any reason as long as Joel indicates in the will that the son was omitted on purpose.

Which of the following property is NOT affected by a will?

life insurance