Midterm - Wills, Trusts, and Estate Admin.
For a holographic will to be valid, many states require all of the following except: a. At least two witnesses must attest to the will. b. The testator's signature must be placed in a specific part of the will. c. The testator must have a clear intent to make a will. d. The will must be entirely handwritten by the testator.
A - At least two witnesses must attest to the will.
On May 5, 2015, Damon conveys a farm to his daughters, Serena, Amber, and Inez, as joint tenants by a single deed. Each daughter receives a one-third undivided interest of the whole property, and each has an equal right to possession of the whole farm. Which of the following creates unity of title? a. The farm was conveyed to Serena, Amber, and Inez by a single deed. b. The farm was conveyed to Serena, Amber, and Inez on the same date. c. Serena, Amber, and Inez have equal rights of possession to the farm. d. Equal interest in the farm is conveyed to Serena, Amber, and Inez.
A - The farm was conveyed to Serena, Amber, and Inez by a single deed.
Which of the following is true of a tenancy in common? a. The undivided interest of the tenants may be unequal. b. The tenants may not transfer or pledge their interest as security for a loan. c. It is nonprobate property. d. It must include the four unities: time, title, interest, and possession.
A - The undivided interest of the tenants may be unequal.
Oscar Rivera owns a home, various items of personal property, and additional assets. He has a wife from whom he is estranged. Oscar also has a 12-year-old daughter who is handicapped and a 23-year-old son. The children's mother died before Oscar married his current wife. Oscar is meeting with his attorney to execute his will and to make arrangements for his funeral and burial. To ensure that his daughter is cared for in the event of his death, Oscar should appoint which of the following for her? a. both a personal guardian and a property guardian b. a property guardian only c. a conservator d. a personal guardian only
A - both a personal guardian and a property guardian
The method of dividing an intestate estate by giving an equal share to a number of persons, all of whom are related to the decedent in the same degree of relationship is:
A - per capita distribution
Which of the following is an example of nonprobate property? a. real property subject to transfer under a transfer-on-death deed or beneficiary deed b. Social Security, Railroad retirement, and Veterans' Administration benefits c. personal property owned in severalty or in a tenancy in common d. civil lawsuit for money damages
A - real property subject to transfer under a transfer-on-death deed or beneficiary deed
All of the following are forms of concurrent ownership except: a. tenancy in severalty. b. joint tenancy. c. tenancy in common. d. tenancy by the entirety.
A - tenancy in severalty
Oscar Rivera owns a home, various items of personal property, and additional assets. He has a wife from whom he is estranged. Oscar also has a 12-year-old daughter who is handicapped and a 23-year-old son. The children's mother died before Oscar married his current wife. Oscar is meeting with his attorney to execute his will and to make arrangements for his funeral and burial. The best method for Oscar to use to ensure that his funeral and burial are carried out according to his wishes is for him to:
B - include a detailed plan in a letter of instructions separate from his will.
All of the following are forms of transferring the title to property from one party to another except: a. grant. b. interest. c. conveyance. d. deed.
B - interest
What is abatement? a. the ranking of testamentary gifts into a certain order to be used for the payment of debts b. the proportional reduction of the legacies and devises in a will because of inadequate available funds from the assets of the testator's estate c. the failure to pass or distribute a gift in a will because the beneficiary or devisee dies before the testator d. an intentional act of the testator, while alive, to revoke, recall, or cancel a gift made through the will or deliver the gift or a substitute to the beneficiary
B - the proportional reduction of the legacies and devises in a will because of inadequate available funds from the assets of the testator's estate
Each joint tenant of a piece of real property has all of the following rights except: a. the right of severance. b. the right to transfer his/her interest in a will. c. the right of survivorship. d. undivided interest.
B - the right to transfer his/her interest in a will.
A person's estate plan should meet all of his/her objectives and provide all of the following except: a. a comfortable retirement income. b. the elimination of any taxes throughout the implementation of the plan. c. proper custodial care if incompetency or any serious physical or other mental health problem occurs. d. financial protection for the family.
B- he elimination of any taxes throughout the implementation of the plan.
Fiduciaries include all of the following except: a. trustees who act for beneficiaries of a trust. b. probate court judges. c. guardians who act for minors or incompetent persons. d. personal representatives who act for beneficiaries or heirs.
B- probate court judges
Joaquin owns a cabin by a lake. In a deed, he conveys the cabin "to my brother David Robertson for life, then to Marion Robertson, David's daughter." All of the following are true except: a. Joaquin does not have the right of reversion to the cabin. b. David does not have the right to sell the cabin. c. Joaquin, as the grantor, has the right to revoke the deed. d. Marion will have the right to sell the cabin.
C - Joaquin, as the grantor, has the right to revoke the deed.
Which of the following allocates the tax burden among the residuary estate and the beneficiaries of the will? a. the spouse's statutory, forced, or elective share b. an intestate succession statute c. an apportionment clause in a will d. tenancy in common
C - an apportionment clause in a will
Which of the following most specifically refers to an heir or person related to an intestate decedent in a direct line either upward in an ascending bloodline or downward in a descending bloodline? a. affinity b. kin c. lineal d. collateral
C- lineal
On May 5, 2015, Damon conveys a farm to his daughters, Serena, Amber, and Inez, as joint tenants by a single deed. Each daughter receives a one-third undivided interest of the whole property, and each has an equal right to possession of the whole farm. If Serena dies and leaves all of her real and personal property to her two children, Bob and Jonas, in her will, which of the following will happen? a. Amber and Inez will each have a one-third undivided interest in the farm, and Bob and Jonas will share a one-third interest in the farm. b. Amber, Inez, Bob, and Jonas will each have a one-fourth undivided interest in the farm. c. The farm will go into probate as part of Amber's estate. d. Amber and Inez will each have a one-half undivided interest in the farm.
D - Amber and Inez will each have a one-half undivided interest in the farm.
Keisha Johnson died intestate. Her assets include a house, a vacation condominium, an insurance policy worth $120,000, and $60,000 in savings. Keisha is survived only by three adult sons. The statute in Keisha's state equally divides the assets of an intestate among the intestate's children. Assuming that each of Keisha's sons makes a will, which of the following is true? a. If any one of them dies, his interest in the house and condominium will automatically be divided equally among his brothers. b. If any one of them dies, the laws of the state will determine who will receive his interest in the house and condominium. c. The house will go to one of the remaining brothers, and the condominium will go to the other brother. d. Each son has the right to pass on his interest in the house and condominium to any beneficiaries named in his will.
D - Each son has the right to pass on his interest in the house and condominium to any beneficiaries named in his will.
Every state has laws that set forth all of the following requirements in regard to the creation of a valid will except which of the following? a. The maker's signature must be on the will. b. The maker of the will must have testamentary capacity. c. The maker of the will must have legal capacity. d. The will must be holographic.
D - The will must be holographic
Which of the following is not real property? a. trees growing on land b. structures built on land c. fixtures d. crops cultivated for sale
D - crops cultivated for sale
Community property states recognize separate property as including all of the following except: a. property individually owned by the husband or wife prior to their marriage. b. Social Security, Railroad retirement, and Veterans' Administration benefits. c. property acquired by one spouse during the marriage by gift, will, or inheritance. d. property acquired during a marriage when one spouse earned considerably less than the other or nothing at all.
D - property acquired during a marriage when one spouse earned considerably less than the other or nothing at all.
A holographic will is an oral will spoken in the presence of witnesses and is valid only under exceptional circumstances, such as the imminent death of the person expressing his/her will.
FALSE
A homestead allowance is a statute that specifically protects a family from eviction from its home by creditors.
FALSE
A mutual will is probated twice: once on the death of each spouse.
FALSE
A tenancy or estate for years creates an interest in real property that will last for an indefinite period of time.
FALSE
A testamentary trust is not contained within a will.
FALSE
A testator can choose to disinherit a surviving spouse and surviving children.
FALSE
A title is a written, signed, and delivered legal document that transfers ownership of real property, such as land or buildings, from a grantor to a grantee.
FALSE
A transfer-on-death deed is one type of substitute for a will in which the ownership of real or personal property by two or more persons has the right of survivorship.
FALSE
A will eliminates complicated procedures, such as the problems that accompany the transfer of ownership from the decedent to the beneficiary.
FALSE
Ademption is a process that determines the order in which gifts made by the testator in the will shall be applied to the payment of the decedent-testator's debts, taxes, and expenses
FALSE
All of the real and personal property owned by a person at the time of his/her death can be transferred by will or intestate succession.
FALSE
All trusts are revocable and may be changed, amended, or canceled by the maker of the trust at any time during his her lifetime.
FALSE
An absolute or fee simple estate is one in which the owner is entitled to the entire property with unconditional power of disposition only during his/her lifetime, but the property cannot descend to his/her heirs upon his/her death intestate.
FALSE
An estate plan encompasses the creation of a person's estate and its maximum growth and conservation during his/her lifetime, but not its distribution after the person's death.
FALSE
An executor is a person appointed by a probate court to administer a decedent's estate when there is no will.
FALSE
Degree of kindred is a method of determining solely which collateral relatives or heirs will inherit from an intestate.
FALSE
Joaquin owns a cabin by a lake. In a deed, he conveys the cabin "to my brother David Robertson for life, then to Marion Robertson, David's daughter." David does not have the right during his lifetime to grant the use and possession of the cabin to anyone other than Marion
FALSE
Keisha Johnson died intestate. Her assets include a house, a vacation condominium, an insurance policy worth $120,000, and $60,000 in savings. Keisha is survived only by three adult sons. The statute in Keisha's state equally divides the assets of an intestate among the intestate's children. If one of the brothers marries and has a child, the three brothers will then each have a one-fourth interest in the house and condominium, with the child also having a one-fourth interest.
FALSE
Keisha Johnson died intestate. Her assets include a house, a vacation condominium, an insurance policy worth $120,000, and $60,000 in savings. Keisha is survived only by three adult sons. The statute in Keisha's state equally divides the assets of an intestate among the intestate's children. Keisha's sons are her beneficiaries.
FALSE
On May 5, 2015, Damon conveys a farm to his daughters, Serena, Amber, and Inez, as joint tenants by a single deed. Each daughter receives a one-third undivided interest of the whole property, and each has an equal right to possession of the whole farm. While Serena, Amber, and Inez are alive, they do not have the right to transfer their interest in the farm to any other person.
FALSE
Per capita distribution is the method of dividing an intestate estate wherein a group of heirs takes the share to which the deceased parent would have been entitled, had he/she lived.
FALSE
Personal property includes real estate.
FALSE
Persons who are entitled by statute to receive any gift from an intestate are called beneficiaries.
FALSE
The best method for a person to preplan his/her funeral and burial arrangements is to include the plans in a will or a codicil.
FALSE
The undivided interests of tenants in common must be equal; whereas, for joint tenants, the undivided interests may be equal or unequal.
FALSE
Which of the following is not a general rule of distribution under most state intestate succession statutes?
In the case of no surviving spouse and no children, brothers and sisters receive the property, followed by the parents.
A collateral is an heir or relative, not in a direct line of lineal ascent or descent, who traces a kinship relationship to an intestate decedent through a common ancestor.
TRUE
A fiduciary is a person who serves in a position of trust and controls and manages property for the benefit of others.
TRUE
A residuary clause is the most important clause in a will, because it generally distributes the bulk of the decedent's estate after the payment of debts, taxes, and costs of administration and the distribution of specific, demonstrative, and general legacies.
TRUE
A settlor is a person who creates a trust and transfers legal title of his/her property to one or more persons.
TRUE
A specific devise is a gift of real property in a will.
TRUE
A testator is a person who makes a will and/or dies with a valid will.
TRUE
Affinity refers to persons who are related by marriage.
TRUE
All wills are ambulatory, meaning that they are subject to change.
TRUE
An apportionment clause in a will allocates the tax burden among the residuary estate and the beneficiaries of the will.
TRUE
An estate is made up of all the real and personal property owned by a person while he/she is alive or all the assets owned by a decedent at the time of death.
TRUE
An inter vivos trust is a trust that is created by a person during his/her lifetime and becomes operational immediately after the trust is created.
TRUE
Escheat is the passage of an intestate's property to the state when the intestate has no surviving blood relatives or spouse.
TRUE
Fixtures are real property.
TRUE
For unit of interest to exist, each joint tenant must hold the same interest in land with respect to quantity and duration.
TRUE
In a will, a testator is permitted to specifically disinherit anyone except a surviving spouse.
TRUE
In tenancy by the entirety, neither the husband, nor wife, can mortgage, sell, or give the property to another or sever the tenancy while he/she is alive or by will or trust without the written and signed consent of the other spouse.
TRUE
Joaquin owns a cabin by a lake. In a deed, he conveys the cabin "to my brother David Robertson for life, then to Marion Robertson, David's daughter." Marion is the remainderman to the cabin.
TRUE
Joint tenancy is the ownership of real or personal property by two or more persons with the right of survivorship.
TRUE
Keisha Johnson died intestate. Her assets include a house, a vacation condominium, an insurance policy worth $120,000, and $60,000 in savings. Keisha is survived only by three adult sons. The statute in Keisha's state equally divides the assets of an intestate among the intestate's children. Each of Keisha's three sons will receive $40,000 from her life insurance policy and $20,000 from her savings.
TRUE
On May 5, 2015, Damon conveys a farm to his daughters, Serena, Amber, and Inez, as joint tenants by a single deed. Each daughter receives a one-third undivided interest of the whole property, and each has an equal right to possession of the whole farm. Even though Serena manages the farm while Amber and Inez have jobs unrelated to the farm, the profits received from the farm must be evenly divided among the three.
TRUE
On May 5, 2015, Damon conveys a farm to his daughters, Serena, Amber, and Inez, as joint tenants by a single deed. Each daughter receives a one-third undivided interest of the whole property, and each has an equal right to possession of the whole farm. The form of ownership of the farm that Serena, Amber, and Inez have in the farm is a joint tenancy.
TRUE
Oscar Rivera owns a home, various items of personal property, and additional assets. He has a wife from whom he is estranged. Oscar also has a 12-year-old daughter who is handicapped and a 23-year-old son. The children's mother died before Oscar married his current wife. Oscar is meeting with his attorney to execute his will and to make arrangements for his funeral and burial. If the trusts that Oscar establishes for his children are irrevocable, then even Oscar cannot change or revoke them during his lifetime.
TRUE
Partition is the division of real property held by joint tenants or tenants in common into distinct and separate portions so that the individual tenants may hold the property separately from the others.
TRUE
Probate courts closely scrutinize the language of wills to determine the testators' true intentions.
TRUE
State intestate succession statutes provide for the distribution of the property of an intestate decedent to those whom the decedent would probably have chosen if he/she had made a will.
TRUE
Tenancy in severalty means that one person is the sole owner of real or personal property with exclusive rights to, privileges of, and interests in the property.
TRUE
Testacy is death with a valid will.
TRUE
Under state intestate statutes, when a spouse and natural child(ren) survive the intestate, the surviving spouse generally receives a lump sum amount of the estate plus half of the remainder, and the child(ren) receive the other half--or the spouse receives one-third to one-half of the estate and the child(ren) receive the remainder.
TRUE
When a joint tenant dies, the surviving joint tenants receive the equal and undivided interest of the decedent, with nothing passing to the beneficiaries, heirs, or devisees of the decedent.
TRUE
Joaquin owns a cabin by a lake. In a deed, he conveys the cabin "to my brother David Robertson for life, then to Marion Robertson, David's daughter." By this conveyance, Marion receives:
a future fee simple estate
What is a general legacy?
a gift of a fixed amount of money from the general assets of an estate
Which of the following is appointed by a probate court to manage the estate of a decedent who dies intestate?
an administrator
A person who is entitled by statute to receive the real property of a person who has died without a will is:
an heir
Which of the following is not entitled, according to most state statutes, to receive a share of his/her deceased parent's estate?
an intentionally pretermitted child
Which is an example of real property?
apartment building
A gift of a specific monetary amount to be paid from the proceeds of the sale of a particular item of property or from some identifiable fund is:
demonstrative legacy
Which of the following is not relevant to the discussion with a client regarding real property? a. tenancy in common b. homestead c. digital assets d. joint tenancy
digital assets
Most states, except community property states, give a surviving husband or wife the statutory right to avoid being disinherited by the will of the deceased spouse through:
elective forced share
Ejectment is the termination of a vested estate by the happening or nonhappening of an event.
false
All of the following are benefits that a surviving spouse and children may receive from a decedent spouse's estate, benefits that are not determined by the decedent's will or a state intestate succession statute, except:
forced share
A person who dies without a valid will is:
intestate
Which of the following is ownership of real or personal property by two or more persons with the right of survivorship?
joint tenancy
The best and most appropriate method for a person to preplan his/her funeral and burial arrangements is to include the plans in a:
letter of instructions
A freehold estate in which a tenant holds an interest in real property during his/her own or someone else's lifetime is a:
life estate
Joaquin owns a cabin by a lake. In a deed, he conveys the cabin "to my brother David Robertson for life, then to Marion Robertson, David's daughter." By this conveyance, David receives:
life estates
Into which of the following is property sometimes transferred for the benefit of children from a prior marriage in order to avoid subjecting certain assets to the statutory intestate succession or elective share claims of a new spouse?
revocable living trust
A payment made to an author, composer, or inventor by a company that has been licensed to publish or manufacture the manuscript or invention of that author, composer, or inventor is a:
royalty
Keisha Johnson died intestate. Her assets include a house, a vacation condominium, an insurance policy worth $120,000, and $60,000 in savings. Keisha is survived only by three adult sons. The statute in Keisha's state equally divides the assets of an intestate among the intestate's children. Keisha's house and vacation condominium will go to her three sons in the form of:
tenancy in common
Oscar Rivera owns a home, various items of personal property, and additional assets. He has a wife from whom he is estranged. Oscar also has a 12-year-old daughter who is handicapped and a 23-year-old son. The children's mother died before Oscar married his current wife. Oscar is meeting with his attorney to execute his will and to make arrangements for his funeral and burial. Oscar decides to set up a trust for each of his children, a trust that will become operational after Oscar's death. These trusts are:
testamentary trust
Which of the following is created in a will and becomes operational only after the person's death?
testamentary trust
States that allow holographic wills generally require that the wills also be signed by witnesses.
true
Of the four unities required for the creation of a joint tenancy, the requirement that each joint tenant have an equal right to possess the entire property and share equally in the profits and losses derived from the property is:
unity of possession
