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Chapter 51
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
B1. One who dies after having made a valid will is said to have died intestate.
B2. A will can serve no other purpose besides the distribution of property.
B3. An executor is a personal representative named in a will.
B4. The property of a decedent escheats to his or her designated heirs.
B5. A gift of real estate by will is generally called a bequest.
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B6. A valid will is one that represents the maker’s intention to transfer and distribute
his or her property.
B7. There is a requirement that testators give their estate to the natural heirs.
B8. There are age requirements for the witnesses who attest to a will.
B9. The testator’s signature must appear on the will.
B10. A testator may revoke a will by intentionally tearing it.
B11. A codicil is a will substitute that avoids the cost of probate.
B12. A method of accomplishing a property transfer without a will is through the joint
ownership of property.
B13. If no children or grandchildren survive a decedent who dies without a will, a
surviving spouse receives the entire estate.
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B14. When a person dies without a valid will, and no heirs exist, the state will
assume ownership of the property.
B15. A trust created by a will to come into existence on the settlor’s death is an
irrevocable living trust.
B16. A testamentary trust is created by will and comes into existence on the
grantor’s death.
B17. A Totten trust provides for a beneficiary’s transfer of his or her right to future
payments of trust funds.
B18. A resulting trust arises from the conduct of the parties.
B19. A power of attorney is usually limited to a specific context, such as negotiating
a deal with a buyer.
B20. A “living will” is a will drafted and executed during a decedent’s life.
MULTIPLE CHOICE QUESTIONS
B1. Finlay dies without a will. The distribution of Finlay’s property, including his
beachfront house near Gulf Shores, Alabama, is prescribed by
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a. a court-appointed executor.
b. federal probate statutes.
c. state intestacy laws.
d. Finlay’s relatives.
B2. Dalmira dies without a will. A court appoints Estee to handle the probate of
Dalmira’s estate. Dalmira’s closest blood relative is Farnham. The administrator
of the estate is
a. Farnham.
b. Dalmira.
c. Estee.
d. the court.
B3. Karissa’s will states, “I give to my sister Lexy my condominium in Miami,
Florida.” This is
a. a general legacy.
b. a residuary.
c. a specific bequest.
d. a specific devise.
B4. In his will, Bryson makes a gift of $12,000 to Curtis. This is
a. a general bequest.
b. a general devise.
c. a specific bequest.
d. a specific devise.
B5. According to the terms of Diego’s will, specific gifts are made, and taxes and
other estate expenses and debts are paid. The assets of Diego’s estate that
remain are most likely to be distributed
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a. by codicil.
b. holographically.
c. per capita.
d. through a residuary clause.
B6. Meryl’s daughter Nixie dies before Meryl, leaving Nixie’s son Orman. On
Meryl’s death, it is learned that her will gives “to my daughter Nixie my farm
near Pratt, Kansas.” Most likely, the gift of the farm
a. abates.
b. will not lapse.
c. lapses in full.
d. lapses in part.
B7. Genevieve, 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.
b. eighteen.
c. twenty-one.
d. any age.
B8. Hamid makes a will leaving a specific sum of money to each surviving relative.
The assets of Hamid’s estate are not enough to make all of the gifts in full. This
situation requires
a. an abatement.
b. a constructive trust.
c. a residuary.
d. a revocation.
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B9. For Melinda’s will to be valid, she must be mentally competent at the time of
a. death.
b. the acquisition of the property to be distributed under the will.
c. the making of the will.
d. the probate of the will.
B10. Lost in a canyon near Death Valley, California, Edina writes her will in crayon,
on a paper bag, while Farrow states orally how he wants his estate distributed.
Most states do not permit
a. a holographic will.
b. a nuncupative will.
c. a will written on a paper bag.
d. a will written in crayon.
B11. Kim is asked to serve as a witness to Lian’s will. To qualify, Kim must be
a. a collateral heir.
b. a lineal descendant.
c. at least eighteen years old.
d. mentally competent.
B12. Rica is asked to be a witness to Sade’s will. Before attesting to the will,
a. Rica does not have to read the will or be informed of its contents.
b. Rica must read the will and recite its contents.
c. Sade must orally tell Rica of the will’s contents.
d. Sade’s attorney must read the will aloud to Rica.
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B13. 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.
B14. Ortensia is married to Paolo. Ortensia executes a will, leaving certain property
to Paolo and other property to Quito, who is unrelated to Ortensia and Paolo.
On Ortensia’s death, the share of property given under the will can be
renounced by
a. neither Paolo nor Quito.
b. Paolo and Quito.
c. Paolo but not Quito.
d. Quito but not Paolo.
B15. Raphaelle employs a variety of will substitutes to transfer her assets, which
consist principally of cash and investments in mutual funds, outside the probate
process. In this situation, the most important consideration is to
a. avoid the cost of probate.
b. ensure that the arrangements benefit the intended persons.
c. establish grounds for a court’s review of the arrangements.
d. follow the same principles as apply to testamentary transfers.
B16. Finnegan dies without a will, with no surviving spouse or child. Finnegan’s
survivors include his grandson Gallagher, his niece Hailey, and his cousin
Innis. In most states, his estate would pass to
a. Gallagher.
b. Hailey.
c. Innis.
d. the state.
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B17. Gary dies without a will. His survivors include his spouse Helen and his two
children, Irene and John. Under applicable laws, of Gary’s estate, Helen will
probably receive
a. everything.
b. nothing.
c. one-half.
d. one-third.
B18. 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.
B19. Lieko wants to put some money in trust for her daughter Mari, but she does not
want to lose full control over the funds in case she may need them in the future.
One trust suited to Lieko’s needs is
a. a constructive trust.
b. a resulting trust.
c. a spendthrift trust.
d. a Totten trust.
B20. Jade signs an advance health directive that states what medical treatment may
be used after a serious accident or illness. She indicates that she wants certain
lifesaving procedures to be undertaken unless the treatment will not result in a
reasonable quality of life. This is
a. a durable power of attorney.
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b. a health-care power of attorney.
c. a living will.
d. a living trust.
ESSAY QUESTIONS
B1. Demetri’s will provides for a distribution of his assets—including cash, jewelry,
household goods, bank accounts, investments, a home, a vacation
condominium, and other personal and real property—on his death. Who
“distributes” this property, and what are the steps involved?
B2. Ingrid is the trustee of a trust in which Jens has a life estate and Karin has the
remainder interest. The trust property is a farm. The farm is leased to Lars, who
pays the rent to the trust. Property taxes are paid annually on the farm. Long–
term improvements are occasionally made and paid for. A section of the farm’s
land is sold to Margo, one of the farm’s neighbors. How are the payments for
taxes and improvements classified (ordinary or extraordinary)? How are the
receipts of rent and the proceeds from the land sale classified? To whom are
these costs and benefits allocated?
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