Legal Terminology Review Submittal Three

a. True

A QTIP gives all trust income to a surviving spouse for life, payable at least annually, with the principal passing to someone else upon the spouse's death.

c. Spendthrift

A _____ is one who spends money very unwisely and without any self-control.

a. Testamentary Trust

A ______ is a trust that is created by a will, coming into existence only on the death of the testator.

d. Spray

A ______ trust allows the trustee to use discretion to decide how much will be given to each beneficiary.

d. Resulting

A ______ trust arises when a transfer of property is made to one person, but the purchase price for the property is paid by another person.

d. Constructive

A ______ trust is imposed by a court to avoid the unjust enrichment of one party at the expense of the other when the legal title to the property was obtained by fraud.

b. False

A bond is a promise by the personal representative and the legatees to pay the amount of the bond if the representative's duties are not faithfully performed.

a. True

A charitable remainder annuity trust is a fixed amount of income given annually to a beneficiary.

a. True

A conservator is one who legally has the care and management of the property, but not the person of someone who is incompetent.

a. True

A contract for services is not governed by the UCC because it is not a sale of goods.

b. Affiliation Proceeding

A court action to determine whether a person is the father of a child born out of wedlock is called:

a. True

A credit-shelter trust provides only income for the surviving spouse for life, yet leaves the principal untouched for someone else when the surviving spouse dies.

d, Testimonium Clause

A declaration that the testator's signature is attached in testimony of the preceding part of the instrument and begins with the words "IN WITNESS WHEREOF" is called the:

b. False

A nuncupative will is limited to the disposition of real estate only.

a. General Agent

A person hired to manage a business would be an example of a(n):

d. Voluntary Administrator

A person who undertakes the informal administration of a small estate is a(n):

b. Bond

A promise by the personal representative to pay an amount of money to the probate judge if the representative's duties are not faithfully performed is called:

a. Bill of sale

A signed writing evidencing the transfer of personal property from one person to another is a:

a. A-B Trust

A type of a marital deduction trust is a(n):

a. Holographic Will

A will that is written in the handwriting of the testator is called a(n);

a. Incorporation by Reference

A will's reference to another document, such as a list of items to be given to someone, make the other document part of the will and is known as the:

d. Inheritance Tax

A(n) ____ is a tax imposed on a person who inherits from a decedent's estate.

c. Administrator Ad Litem

A(n) _____ is appointed by the court to supply a necessary party to a suit in which the estate has an interest, as when the estate is a party to a lawsuit.

b. Satisfacation

A(n) _______ takes place when the entire amount of money of a general precuniary legacy is paid to the legatee during the testator's life with intent that such payment is in lieu of the legacy.

a. True

According to the UPC, a gift of real property in a will is called a devise.

a. True

After a waiting period runs out, creditors are barred from bringing claims, and debts of the estate may be paid.

b. Revocable Living Trust

Although it has no estate or income tax benefit, the ______ relieves the cares of management of money or property, as well as other purposes, including protecting the assets in the trust form loss due to the beneficiary's negligence.

b. False

An "X" is not acceptable as a signature on a will according to the UPC.

a. True

An administrator de bonis non is appointed by the court to complete the settlement of an estate in which a previously appointed administrator has dies, has resigned or has been removed.

a. True

An estate tax is imposed on the estate of a deceased person, exempting the first $2 million of an estate from taxation, with anything over that amount being subject to a 35% tax.

b. False

An example of intangible personal property is a flat screen television.

a. True

An example of tangible property is an item of clothing.

b. False

An executor is a person appointed by the court to administer the estate of an intestate decedent.

a. True

Copyright protection begins at the moment one's creative work is fixed in a tangible medium.

c. Executor

Except in states that have adopted the Uniform Probate Code, the ______ is the personal representative of the estate and is responsible for settling the estate.

a. True

Express authority is authority that is given explicitly.

b. False

Federal trademark provides protection for 20 years and may be renewed for additional 20 year periods.

a. True

Fiduciaries are people in positions of trust, such as the executor, guardian, and trustee, who have a duty to act in the best interest of others.

c. Legal Title

Full, absolute ownership in a particular item of property is called:

b. False

Gifts made within five years of the date of death are presumed to be made in contemplation of death unless shown to the contrary.

a. Degree of Kindred

If a deceased is survived by no issue, to determine the closest relatives, each relationship is assigned a number called a:

a. True

If a minor child wants to prove that his omission from the will was unintentional, it must be done through another person called a next friend.

d. Simultaneous

If he deaths of two or more people have occurred in such a way that it is impossible to determine who dies before whom, the deaths are said to have been:

b. False

If the decedent died intestate, the executor named in the will or some other interested person petitions the court for the allowance of the will and for appointment as executor or administrator sum testament annexo of the will.

d. Conforming Goods

If the goods that are delivered to the buyer are in accordance with the obligations under the contact, they are called:

b. False

If title is to pass at a further time, the transaction is called a bill of sale.

a. True

Illegitimate children are also called nonmarital children.

b. False

In California, a procedure known as summary administration is used to settle estates that do not exceed $30,000.

b. False

In Cruzan v. Director, Missouri Department of Health (1990) the U.S. Supreme Court held that the right to refuse medical treatment is not protected by the 14th Amendment of the U.S. Constitution.

b. Totten

In a ______ trust, the depositor, while alive, can deposit and withdraw from the account. Upon the depositor's death, the account belongs to the named beneficiary.

a. True

In a requirements contract, title and risk of loss pass to the buyer when the goods are tendered at their destination, and the shipper (e.g., in Boston) assumes ownership responsibility until then.

a. True

In an irrevocable living trust, the settlor loses complete control over the trust corpus during his lifetime and cannot change the trust.

b. False

In most states, a divorce will revoke the entire will of the person who divorced

b. Patent

In order to qualify for _____ status, the invention must be new,l useful, and non-obvious to a person with ordinary skill in that particular field.

b. False

Independent contractors perform services for others and are under others' control, just as employees are under the control of employers.

a. True

Issue are all people who have descended from a common ancestor, such as children, grandchildren, and great-grandchildren.

b. False

Legacies and devices are divided into three types--specific, general, and residuary.

a. True

One way in which a gift in a will may fail is that the devisee or legatee dies before the testator.

b. Special Administrator

One who is appointed by the court to handle the affairs of an estate for a limited time only, most likely because there is a need of immediate attention, is called a(n):

d. Special Agent

One who is authorized to carry out a single transaction or to perform a specified act is called a:

d. Pay on Death

POD means:

b. Attesting Witnesses

People who witness the signing of a document are called:

a. True

Personalty is anything that is the subject of ownership other than real estate.

c. Uniform Probate Code

Sixteen states have adopted a law called the ______, attempting to standardize and modernize laws relating to the affairs of decedents.

a. Sponge

Some states impose an estate tax equal to the credit allowed for state death taxes on the federal estate tax return if it is required to be filed. It is also known as a _____ tax.

b. Slayer Statutues

State laws preventing a murderer from inheriting from the person they killed are called:

b. Puffing

Statements made by sellers that are opinions, and that attempt to put their goods in the best light possible are not warranties, but are known as:

a. True

The Latin prefix "ad" means "to" or "toward."

c. Exordium Clause

The _____ is the introductory paragraph of a will, which states that the testator revokes all previous wills and codicils made t an earlier time.

a. True

The amount of a bond is usually twice the value of the personal property of the estate.

a. True

The attestation clause recites that the will was witnessed at the request of the testator and was signed by the witnesses in the presence of the testator and of each other.

b. False

The court in New Jersey that the jurisdiction over probate proceedings is called Orphan's Court.

c. Design Patent

The curvy shape of the Coca-Cola bottle was granted a(n):

b. An Inventory

The document that lists the assets of the estate together with their appraised value is:

c. Risk of Loss

The key distinction between a sale on approval and a sale or return is that the buyer bears the ______ in a sale or return until the goods have been returned to the seller.

c. Intestate Succession

The law concerning the circumstance of dying without having made a will is called the law of:

b. Executor de son tort

The name given to a person who performs the duties of an executor without authority to do so is:

b. False

The person whom the court appoints to be the personal representative of the estate is called a guardian.

a. True

The proponent of the will has the burden of proof if a will is contested on the grounds that the testator was of unsound mind.

b. False

The term "descendants" means those who are of the bloodstream (not adopted) of a common ancestor.

a. Patent Infringment

The unauthorized making, using, or selling of a patented invention during the term of the patent is called:

a. True

Trademark protection can be lost by the mark becoming a generic term used by a large segment of the public for a long time.

a. True

Trustees do not have to be human persons.

b. Resulting

Two examples of implied trusts are constructive trusts and ______ trusts.

a. True

Under the doctrine of respondent superior, principals and employers are said to have vicarious liability.

a. True

Under the laws of many states, half-blood relatives inherit the same as whole-blood relatives.

b. False

Under the rule against perpetutities, the court allows the trust fund to be held for another purpose that meets as nearly as possible the intent of the settlor.

a. True

Usually a person cannot accept dower and, at the same time, waive the will of a deceased spouse.

b. Letters of Adiministration

When a satisfactory bond with sufficient sureties has been filed, the court issues a certificate of appointment to the personal representative called _____ in a testate estate.

a. Demonstrative

When a testator intends to make a general gift but wishes to have it satisfied out of a specific property, this is an example of a _______ legacy.

a. True

When a will is burned, torn, cancelled, or obliterated, the will is revoked.

b. Agency by Ratification

When an agent acts on behalf of a principal without authority to do so, but the principal later approves of the act, it is known as:

c. Agency

When an agent is authorized to act on behalf of and under the control of a principal, a(n) _____ exists.

b. False

When an author tells a friend what his next great novel plot is, his idea is copyrightable.

a. True

When an invention falls into the public domain, the invention may be made, used, or sold by anyone, including the original inventor.

a. True

When goods are left by a bialor with a bailee who tries to sell them, good are sold on consignment.

a. True

When personal property is a flat screen television.

a. True

When sellers, as part of a transaction, make statements of fact or promises about the goods, describe them, or show samples of them, this guarantee is known as an express warranty.

d. Collateral Relatives

When there are no living descendants or ascendants, the balance passes to the decedent's:

d. Bailment

______ occurs when someone leaves a car with an auto repair shop to be fixed, loans a lawnmower to a neighbor, or takes care of a friend's goldfish for a week.