Chapter 50. Trusts and Decedents’ Estates
1. A trust can only be created by a written document, although no particular words are necessary.
a. True
b. False
2. An express trust may be found if the intent of the grantor to create a trust is unmistakable.
a. True
b. False
3. Creditors of any trust beneficiary can attach the fund or the income to pay the beneficiary’s individual debts.
a. True
b. False
4. If a person dies without a valid will and has no heirs or next of kin, her property goes to the state.
a. True
b. False
5. A totten trust is revocable by the creator.
a. True
b. False
6. Constructive trusts are generally found where the creator clearly intended a trust to be formed.
a. True
b. False
7. A trust divides legal and equitable title to property.
a. True
b. False
8. A testator with capacity and intent can create an irrevocable will.
a. True
b. False
9. The failure to appoint a trustee will destroy a trust.
a. True
b. False
10. A devise is a gift by will of personal property.
a. True
b. False
11. A beneficiary ordinarily has no right to sell his interest in trust assets before he is entitled to receive the corpus.
a. True
b. False
12. The courts may not create implied trusts.
a. True
b. False
13. If a person dies without a valid will, her property will be distributed according to state statute, even if that distribution
is contrary to the decedent’s clear intention.
a. True
b. False
14. Upon the death of a beneficiary who held more than a life estate, his interest in the trust reverts to the trustee.
a. True
b. False
15. A will is presumed to be irrevocable unless the power to revoke is expressly stated.
a. True
b. False
16. A spouse of a beneficiary and the named executor of a will are considered qualified witnesses by all courts.
a. True
b. False
17. In most states, children under a certain age cannot make valid wills.
a. True
b. False
18. Ordinarily, the attorney who drafts the will may not serve as a witness to the will.
a. True
b. False
19. If a witness dies prior to the death of the testator, his signature is not counted as a witness unless proof of his
handwriting is submitted.
a. True
b. False
20. If a will was burned in an electrical fire that destroyed the testator’s home, it will be presumed to be revoked.
a. True
b. False
21. A second will automatically revokes an earlier will if it is wholly inconsistent.
a. True
b. False
22. Taxes are imposed at death by the federal government in the form of an inheritance tax and by the state government
in the form of an estate tax.
a. True
b. False
23. Renunciation is a statutory right of a surviving spouse to give up her statutory share in the estate.
a. True
b. False
24. A completely handwritten will is valid only if witnessed.
a. True
b. False
25. Nuncupative wills are generally enforceable.
a. True
b. False
26. Codicils will not be valid if executed and attested.
a. True
b. False
27. Under most intestate succession laws, a stepchild will not inherit unless legally adopted.
a. True
b. False
28. A totten trust may also be referred to as a savings account trust.
a. True
b. False
29. If Hana pays the purchase price for property and takes title in the name of Thalia, a constructive trust is formed with
Thalia being treated as the trustee.
a. True
b. False
30. The executor or administrator occupies a fiduciary relationship with regard to the estate.
a. True
b. False
31. A trust for the establishment and maintenance of a museum would be a charitable trust.
a. True
b. False
32. The person holding legal title to the property is the settlor of the trust.
a. True
b. False
33. A totten trust involves a bank account opened by the settlor of the trust.
a. True
b. False
34. Once a trust is validly created, it is revocable.
a. True
b. False
35. A will entirely in the handwriting of the testator is called a will.
a. nuncupative
b. holographic
c. conditional
d. codicil
36. If a person dies intestate, his property will be:
a. distributed according to the clear intention of the decedent if ascertainable.
b. passed to his living children.
c. kept by the state.
d. Not necessarily any of these.
37. The holder of legal title to the property in a trust is the:
a. grantor.
b. settlor.
c. beneficiary.
d. trustee.
38. An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff. Even if
the check is made out in the name of the attorney, it will belong to the client as a:
a. resulting trust.
b. constructive trust.
c. totten trust.
d. spendthrift trust.
39. An express trust is:
a. established by law through the courts when the parties’ conduct seems to warrant the creation of a trust.
b. established by voluntary action.
c. always a written document.
d. All of these.
40. Of the following elements, which one is NOT required to create an enforceable trust?
a. Consideration
b. A settlor
c. Specific property
d. A beneficiary
41. Under the UPC, a person must be what age to make a valid will?
a. Sixteen
b. Eighteen
c. Twenty-one
d. Age does not matter as long as the person is of sound mind and has the intent to make a will.
42. Testamentary capacity refers to:
a. the age of the testator.
b. the same capacity as required to contract.
c. the mental ability to create a will.
d. the influence of others over the testator.
43. In order to be valid, a will must generally include all but which one of the following?
a. Signature of the testator
b. A written document
c. Signatures of witnesses
d. Signature of the executor
44. Which of the following will be acceptable as a witness to a will?
a. The testator’s spouse
b. The person named to be executor of the estate
c. The beneficiary of a testamentary trust
d. The spouse of a beneficiary
45. Which of the following does not terminate a trust?
a. Death of the beneficiary
b. The trustee acquires both equitable and legal title to the trust corpus
c. Occurrence of a date established in the trust instrument
d. Fulfillment of the trust purpose