Chapter 20: Wills, Trusts, and Estates
1. Those who die without a valid will are said to have died testate.
2. A will is a legal expression by which a person directs how his or her property is to be distributed after death.
3. Once made, a will cannot be changed or canceled.
4. Some statutory provisions allow certain relatives to override the will’s terms and receive more of the estate
than the will provided.
5. A holographic will as long as it was written entirely by the decedent’s own hand, signed by him or her, and
not witnessed is recognized in all states.
6. A codicil need not be executed with the same formalities as a will.
7. A trust created for the fulfillment of an altruistic purpose is known as a spendthrift trust.
8. A resulting trust is formed when the entity intended to receive the benefit of an express trust cannot do so.
9. The creator of a trust is known as the trustee.
10. A trust created in accordance with directions in the will of a decedent is labeled a testamentary trust.
11. The female maker of a will is properly called
A. an administratrix.
B. an executrix.
12. A court-appointed male personal representative overseeing an estate is called
C. a testator.
D. a trustee.
13. The clear intention to make a will without undue influence of others is called
A. testamentary capacity.
B. testamentary lucidity.
C. testamentary formality.
D. all of these.
15. A will only takes effect
C. upon the official recording of it.
D. upon the one-year anniversary of the death of the maker.
16. If proclaimed during the maker’s last illness or by service personnel on active duty, some states will
recognize
A. a codicil.
17. The party for whose benefit the trust is managed is the
C. donee.
D. trustee.
18. A trust created during the lifetime of the settlor is
C. a spendthrift trust.
D. a testamentary trust.
19. The trust that protects the beneficiary’s interest in the subject property from the beneficiary’s creditors is
A. a charitable trust.
B. an inter vivos trust.
20. A constructive trust is a type of
A. charitable trust.
B. express trust.
21. Because he was unable to write, just prior to his death Oscar called his son and daughter to his bedside. Both
his doctor and nurse were there when Oscar clearly told them his desires for the division of his estate after this
death. Oscar created a
A. codicil.
B. revocable will.
22. Marla has two living children, David and Al, who each have two children. Her daughter Amy was killed in
an automobile accident last year and left three surviving children. Marla wants her will to specify that her
children and grandchildren equally split her estate. Which of the following terms matches her desires?
A. per stirpes
B. per escheats
23. When Betty died, her children could find no evidence of a will. The probate court, therefore, had the power
C. executor.
D. both a and b.
24. Which of the following statements regarding the revocation of a will is not true?
C. In some states an existing will is immediately revoked if the maker marries, has a child, or adopts a child.
D. Divorce does not automatically cancel an existing will.
25. Skip has an estate valued at more than $2,000,000 and would like to transfer some of the property to his
attorney with clear instructions as to how this property is to be managed during and after his life for the benefit
of his wife and children. To do this Skip will want to create a(n)
A. living will.
B. codicil.
26. Included in Chuck’s will are provisions for the creation of a trust after his death for the benefit of his two
handicapped children. By these provisions Chuck has provided for the creation of a(n)
C. spendthrift trust.
D. resulting trust.
27. Which of the following situations would create an invalid will for Jan?
A. Jan undoubtedly wants to create a will; she understands the property involved; and she is over the age of 18.
B. Jan undoubtedly wants to create a will; she has full mental capacity; and she writes her will.
28. Which of the following is an implied trust?
29. Easy Finance Company loaned Tien $10,000 for the construction of a swimming pool in Tien’s backyard.
Although Tien had routinely made her loan payments, at the time of her death she still owed Easy Finance
$5,000. Typically how much time after Tien’s death will Easy Finance have to file a claim against Tien’s estate?
A. one year
B. ten months
30. The right of a decedent’s spouse to choose to receive one-third to one-half of the decedent’s property instead
of what the will allocated to him or her is referred to as the
A. right of elevation.
B. escheat.
31. An alternative to a “living will” is a(n) ____________________ power of attorney.
32. The maker of the will is called the ____________________.
33. A(n) ____________________ will is one that was written entirely by the decedent’s own hand and signed
by him or her.
34. If a person simply vanishes without a trace, after several years he or she can be declared dead under the
____________________ laws.
35. The ____________________ or surrogate’s court will supervise the distribution of the decedent’s assets.
36. The creator of a trust is known as the ____________________.
37. A(n) ____________________ trust protects the beneficiary’s interest in the subject property from the
beneficiary’s creditors.
38. A(n) ____________________ trust is formed when the entity intended to receive the benefit of an express
trust cannot do so.
39. Property obtained through fraud, duress, or like means is deemed to be held by the wrongdoer in
____________________ trust for the person wronged.
40. A trust created after the death of the settlor in accordance with directions in her or his will is labeled a(n)
____________________ trust.
41. Explain why many states will recognize a holographic will even without witnesses.
Basically, a holographic will, as it is written in the decedent’s own handwriting and signed by the decedent, is
42. What is the function of a spendthrift trust?