FSE2080 Funeral Law Study Questions Lesson 1.3

Define Abatement and know when it will be applied to an estate.

A proportional reduction of (gifts) when the funds or assets of the estate are insufficient to pay them in full

List the 4 items which usually have the highest priority when paying the bills/debts of an insolvent estate.

administrative costs funeral expenses taxes medical expenses from last illness

Define personal property and give an example.

any tangible or intangible property such as personal effects, furniture, autos, jewelry, stocks, bonds, etc

By federal law, how long does a consumer have to cancel a signed pre-need contract?

any time prior to midnight of third business day after date of transaction

When does the durable power of attorney end?

automatically when you die

Differentiate between an executor and administrator.

executor- a man appointed by the will of a deceased person to carry out provisions thereof and settle the estate administrator- a man who has been appointed by the court to settle an estate

Differentiate between a guaranteed and a non-guaranteed pre-need contract. Be sure to include who assumes the risk in each case.

guaranteed- FH guarantees to purchaser that price of funeral in future will not exceed amount of paid funds non-guaranteed- FH is agreeing amounts paid on contract will be applied towards price of future funeral, purchaser or estate makes up any difference

How are adopted children treated in estate succession?

have the same rights as biological children

What is the difference between an heir and a beneficiary.

heir- one who inherits or is entitled to receive property by the laws of intestate from the estate of a deceased person beneficiary- one who received property under a legal instrument, such as a will or insurance policy.

In what ways can a will be revoked by writing?

if you make another will that states that the earlier will you made is revoked. if you add a part i.e. a paragraph or page to your current will stating that your current will is revoked

What license must a person possess to sell funeral insurance?

insurance license

Know whether a pre-need should be revocable or irrevocable in order not to be considered as part of the assets of a person who is going on to Medicaid.

irrevocable

Define what is meant by jointly liable and by severally liable.

jointly- each person signing a contract is responsible for his/her share, they each owe a portion of the contract severally- each person signing a contract is responsible for the entire contract if the others signing do not sign

Know the process for a pre-need sales agent with regards to the written and oral notification of the consumer's right to cancel.

must orally inform consumer about right to cancellationcontract must have disclosure informing that buyer may cancel any time prior to midnight of third business day

Define a nuncupative will.

oral will dictated by testator during last illness before appropriate witness to dispose of personal property and afterwards

Differentiate between a pre-arranged funeral and a pre-funded funeral.

pre-arranged- plans with no funding arrangements pre-funded- plans with funding arrangements

Define estate

real and personal property owned at time of death

Differentiate between revocable and irrevocable pre-need contracts.

revocable- may be terminated by purchaser any time prior to death, with purchaser receiving refund irrevocable- may not be cancelled

Who may witness a will?

should only choose someone as a witness who does not have a conflict of interest or potential bias

What are the four steps required of a personal representative in settling an estate?

take inventory of assets/estate file and pay decedent's and estates tax returns pay claims filed by creditors of the decedent account for the funds

Differentiate between Testate and Intestate.

testate- the condition of leaving a will of death intestate- the sate of condition of dying without having made a will.

What signatures are required on a will?

testator two witnesses or by a notary public

Give an example of how per stirpes distribution of an estate may be used.

this is per relationship, if a man dies his wife may get 50% while each of his four children would get 12.5% of the estate.

Give an example of how per capita's distribution of an estate may be used.

this means per head, everyone gets the same amount

Define a holographic will.

written in longhand, instead of being typed

Define ademption.

common law doctrine used in the law of wills to determine what happens when property bequeathed under a will is no longer in the testator's estate at the time of the testator's death

Define Codicil.

An addition or supplement altering a will.

Who may make a will?

Any person who is of SOUND MIND and who is either 18 or more years of age or an emancipated minor.

List the ways you can revoke a will.

by the act of destroying all copies of the old will or by writing a new one by operations of law by a divorcement, marriage, birth of children, or adoption a will may be amended by adding a codicil

Define Escheat.

If the sole owner of a property dies without a will or any known heirs, the state takes ownership as owner of last resort.

Define Real property.

Land and any fixture permanently fixed to the land

Is the funeral bill considered a debt of the deceased?

No

Who is primarily responsible for payment of the funeral expenses?

The estate

What acts are sufficient to revoke a will?

destroying all copies of the old will drawing a line through will provisions or erasing parts

Define devise and devisee.

devise- a gift of real estate made by a will devisee- one who inherits real estate under a will