Chapter 52
Wills and Trusts
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. One who dies after having made a valid will is said to have died testate.
A2. An executor is a personal representative named in a will.
A3. A gift of real estate other than by will is called a devise.
A4. A gift of personal property other than by will is called a legacy.
A5. A lapsed legacy will occur if the testator predeceases the gift.
A6. In most states, a person must be sixteen years of age to execute a valid will.
A7. To execute a valid will, a testator must remember the “natural objects of his or her
bounty.”
A8. Undue influence may be inferred when a named beneficiary is in a position to
influence the making of a will.
A9. A holographic will is an oral will.
A10. A nuncupative will is a will that is completely in the handwriting of the testator.
A11. Once executed, a will cannot be revoked.
A12. To “publish” a will means to release it to the media.
A13. A divorce necessarily revokes an entire will.
A14. A married person who makes a will generally cannot avoid leaving a certain portion of
the estate to the surviving spouse.
A15. Per capita is a method of dividing an intestate share of an estate.
A16. The trustee is the person for whose benefit a trust is held.
A17. A living trust is created or declared in explicit terms.
A18. A trust that a grantor executes orally in contemplation of immediate death is a
testamentary trust.
A19. In a spendthrift trust, a beneficiary can transfer his or her right to the trust’s principal
if the transfer is “thrifty.”
A20. If a trust does not provide for its termination, it will not terminate.
MULTIPLE CHOICE QUESTIONS
A1. Skyler dies after having made a valid will. Skyler has died
a. in escheat.
b. in probate.
c. intestate.
d. testate.
A2. Jock makes a will. As a person who makes a will, Jock is
a. an administrator.
b. an executor.
c. a settlor.
d. a testator.
A3. According to the terms of Carmen’s will, specific gifts are made, and taxes and other
estate expenses and debts are paid. The assets of Carmen’s estate that remain are
most likely to be distributed
a. by codicil.
b. holographically.
c. per capita.
d. through a residuary clause.
A4. Patsy makes a gift of real estate in her will to Quinn. This gift is
a. a bequest.
b. a devise.
c. a legacy.
d. an abatement.
A5. Travis’s will states, “I give to my brother Ubi my gold pocket watch.” This is
a. a general legacy.
b. a residuary.
c. a specific bequest.
d. a specific devise.
A6. Gigi, a twenty-year-old, wants to execute a will before she undertakes a mountain-
climbing trip on a peak in the Himalaya Mountains. In most states, the legal age for
executing a will is
a. sixteen years of age.
b. eighteen years of age.
c. twenty-one years of age.
d. twenty-five years of age.
A7. Dieter opens an account for $100,000 at East State Bank. The account provides that its
funds, which represent most of Dieter’s assets, are held in trust for Flo, the bank
employee who opens the account and who retains the card required to access it. Less
than a year later, Dieter dies, and Flo withdraws the funds. These facts indicate
a. a living trust.
b. a nuncupative will.
c. descent by election.
d. undue influence.
A8. The assets in Dong’s estate, including the value of his home on Elm Street and its
contents, are insufficient to pay in full all of the gifts provided for in his will. His heirs
will receive
a. full payment in order of seniority until the assets are exhausted.
b. nothing—the assets will descend to the state.
c. reduced benefits.
d. the option of distributing the assets according to their wishes.
A9. Before dying from injuries suffered in an auto accident, Beamer tells his relatives that
on his death, Clotilde is to have all of his possessions. Beamer has made
a. a codicil.
b. a constructive will.
c. an inter vivos will.
d. a nuncupative will.
A10. Brick executes a will, telling the witnesses that the document they are about to sign is
his “last will and testament.” After Brick’s death, the will is admitted for probate.
Cecily, his lawyer, reads the will to his heirs. The publication of the will is
a. Brick’s declaration to the witnesses.
b. Brick’s execution of the will.
c. Cecily’s reading of the will to Brick’s heirs.
d. the admission of the will for probate.
A11. Before dying from injuries suffered in a fall from a horse, Inez tells her cousin Juana
that on her death, Lysander is to be given possession of Inez’s Rancho Mirage. In most
states, this oral “will” would be
a. not permitted.
b. permitted.
c. solid.
d. valid.
A12. Ratzo is asked to be a witness to Sade’s will. Before attesting to the will,
a. Ratzo does not have to read the will or be informed of its contents.
b. Ratzo must read the will and recite its contents.
c. Sade must orally tell Ratzo of the will’s contents.
d. Sade’s attorney must read the will aloud to Ratzo.
A13. Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons,
Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Elsie
divorce, but Don dies before changing his will. Under the Uniform Probate Code
a. Elsie receives half of the farm, and Frank and Greg share the rest.
b. Elsie receives half of the farm, and Frank, Greg, and Hal share the rest.
c. Frank and Greg receive the entire estate in equal shares.
d. the state inherits the entire estate.
A14. Amelia executes a separate written instrument to amend her prior will. This separate
document is
a. a codicil.
b. a holographic will.
c. a living will.
d. a nuncupative will.
A15. Violet dies without a will. State laws that determine how the estate of Violet, or of any
decedent, will be distributed in such a circumstance are known as
a. constructive trusts.
b. durable powers of attorney.
c. statutes of descent and distribution.
d. will substitutes.
A16. Sherman dies without a will, survived by his granddaughter Roxy and Roxy’s brother
Pio. Roxy and Pio are Sherman’s
a. collateral heirs.
b. settlors.
c. trustees.
d. lineal descendants.
A17. Grey has two children, Ham (the eldest) and Ivy, both of whom predecease Grey. Ham
is survived by a daughter, Jess, and Ivy by two sons, Kato and Lars. On Grey’s death, if
the estate is distributed per stirpes
a. each grandchild receives one-third of the estate.
b. Jess receives one-half of the estate, and Kato and Lars each receive one-fourth.
c. Jess receives the entire estate.
d. the grandchildren receive nothing.
A18. Orin creates a living trust to pass his assets, including stock in Petro Oil Company and
other business investments, to his heirs. One advantage of this arrangement is that
a. income taxes do not have to be paid on trust earnings.
b. the assets are sheltered from the payment of estate taxes.
c. the assets can be transferred without going through probate.
d. the trust does not come into existence until the grantor’s death .
A19. Dotty creates a trust by her will for the benefit of Eppie and her family to come into
existence on Dotty’s death. This is
a. a constructive trust.
b. an inter vivos trust.
c. a resulting trust.
d. a testamentary trust.
A20. Mason creates a trust to prevent his son, Newt, the beneficiary, from assigning his
rights to future payments of income from the trust. This is
a. a charitable trust.
b. a constructive trust.
c. a spendthrift trust.
d. an illegal trust.
ESSAY QUESTIONS
A1. Aaron owns a certificate of deposit with Beth, his sister, and an apartment building
with Carl, his brother, in both cases as a joint tenant. Aaron, a partner with Debra in
Aaron & Debra Accountants, obtains a life insurance policy with Debra as the
designated beneficiary. Aaron writes a will that gives particular items of personal
property, as well as specific amounts of cash, to his children and his friends. The will
leaves the residue of the estate to Eve, Aaron’s favorite cousin. Carl dies. Aaron, on his
own deathbed, makes a gift to the United Way. Will the certificate of deposit, the
apartment building, the proceeds from the life insurance policy, and the gift to the
United Way become part of Aaron’s estate and be distributed under the will? If not,
how will these items be distributed and to whom?
A2. Ruby, an elderly woman, is diagnosed with lung cancer. She realizes her condition may
worsen, and that there is a chance that at some point she will become so weak the
only way she will be able to breathe is with the help of medical machinery. She does
not want to be kept alive in such a “vegetative state.” What are Ruby’s options?