STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—1ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ
theȱsentence.ȱ
ȱAnswersȱ
ȱȱ1.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱisȱaȱpersonȱwhoȱdied.ȱȱ1.ȱ_______________ȱ
ȱȱ2.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱwillȱisȱanȱoralȱwill.ȱȱ2.ȱ_______________ȱ
ȱȱ3.ȱIfȱthereȱareȱnoȱinheritors,ȱtheȱpropertyȱofȱtheȱdeceasedȱ
ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱorȱrevertsȱtoȱtheȱstate.ȱ
ȱ3.ȱ_______________ȱ
ȱȱ4.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱisȱaȱrepresentativeȱ
whoȱtakesȱchargeȱofȱtheȱintestate’sȱproperty.ȱ
ȱ4.ȱ_______________ȱ
ȱȱ5.ȱAȱpersonȱwhoȱdiesȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱdidȱnotȱhaveȱaȱvalidȱwill.ȱȱ5.ȱ_______________ȱ
ȱȱ6.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱisȱaȱformal,ȱwritten,ȱandȱwitnessedȱ
amendmentȱtoȱaȱwill.ȱ
ȱ6.ȱ_______________ȱ
ȱȱ7.ȱTheȱmakerȱofȱaȱwillȱisȱcalledȱa(n)ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱ.ȱȱ7.ȱ_______________ȱ
ȱȱ8.ȱA(n)ȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱwillȱisȱoneȱthatȱwasȱwrittenȱentirelyȱbyȱ
theȱdecedent’sȱownȱhandȱandȱsignedȱbyȱhimȱorȱher.ȱ
ȱ8.ȱ_______________ȱ
ȱȱ9.ȱAȱtestatorȱmustȱhaveȱȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱ,ȱorȱtheȱclearȱintentionȱofȱ
ȱ9.ȱ_______________ȱ
10.ȱ ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱmeansȱtheȱmakerȱofȱaȱwillȱmustȱunderstandȱ
thatȱheȱorȱsheȱisȱmakingȱaȱwill.ȱ
10.ȱ_______________ȱ
LegalȱApplicationȱ
ȱ11.ȱKordellȱDawsonȱwasȱmountainȱclimbingȱinȱtheȱAlpsȱwhenȱheȱwasȱcaughtȱinȱaȱ
blindingȱsnowstorm.ȱKordellȱslippedȱoffȱofȱanȱicyȱledgeȱandȱbrokeȱbothȱofȱhisȱ
legs.ȱHeȱfearedȱthatȱheȱwouldȱfreezeȱtoȱdeathȱbeforeȱanyoneȱcouldȱfindȱhim.ȱHeȱ
wroteȱaȱbriefȱwillȱonȱaȱslipȱofȱpaper,ȱsignedȱit,ȱandȱplacedȱitȱinȱhisȱbackpack.ȱ
WhatȱtypeȱofȱwillȱdidȱKordellȱcreate?ȱIsȱKordell’sȱwillȱvalid?ȱExplainȱyourȱanȬ
swer.ȱ
Chapter 20 Wills, Trusts, and Estates 4-67
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—1ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱAȱfewȱdaysȱafterȱRoseȱDobsonȱdied,ȱRose’sȱeldestȱdaughterȱfoundȱaȱhandwrittenȱ
willȱinȱaȱfamilyȱBibleȱinȱRose’sȱhome.ȱAlsoȱwrittenȱonȱtheȱwillȱwereȱnotesȱmadeȱ
byȱDavidȱClift,ȱaȱtrustȱofficerȱatȱherȱbank.ȱMr.ȱCliftȱtestifiedȱthatȱheȱcouldȱnotȱ
effectȱunderȱtheȱlaw,ȱitȱmustȱbeȱentirelyȱinȱtheȱhandwritingȱofȱtheȱdeceased.ȱTheȱ
naturalȱchildrenȱclaimedȱthatȱtheȱnotationsȱmadeȱwereȱimmaterialȱandȱthatȱtheȱ
willȱshouldȱbeȱgivenȱitsȱlegalȱeffect.ȱShouldȱtheȱwillȱbeȱadmittedȱtoȱprobate?ȱExȬ
ȱ
ȱ
2.ȱFrankȱPasieka,ȱtheȱdeceased,ȱwhoȱresidedȱinȱTonika,ȱIllinois,ȱhadȱtwoȱrelativesȱ
whoȱwereȱalsoȱnamedȱFrankȱPasieka:ȱoneȱaȱcousinȱlivingȱinȱChicagoȱandȱoneȱaȱ
nephewȱlivingȱinȱPeoria.ȱTheȱdeceased’sȱwillȱleftȱtoȱtheȱchildrenȱofȱ“FrankȱPasieȬ
ka”ȱpartȱofȱtheȱresidueȱofȱtheȱestate,ȱi.e.,ȱtheȱpropertyȱleftȱafterȱtheȱpaymentȱofȱ
realȱestate:ȱoneȱthirdȱtoȱtheȱchildrenȱofȱWalter,ȱoneȱthirdȱtoȱtheȱchildrenȱofȱTheoȬ
dore,ȱandȱoneȱthirdȱtoȱtheȱchildrenȱofȱFrankȱPasieka.ȱThereȱisȱnoȱquestionȱthatȱ
theȱchildrenȱofȱJosephȱareȱentitledȱtoȱoneȱthird,ȱandȱtheȱcourtȱawardedȱthemȱ
that.ȱWhatȱhappensȱtoȱtheȱoneȱthirdȱwilledȱtoȱtheȱchildrenȱofȱWalter,ȱsinceȱheȱ
hadȱnoȱchildren,ȱandȱwhoȱisȱtheȱFrankȱPasiekaȱreferredȱtoȱinȱtheȱwill?ȱExplain.ȱ
4-68 Chapter 20 Wills, Trusts, and Estates
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—1ȱRETEACHȱ
ȱ
Directions:ȱMakeȱaȱbingoȱsheetȱforȱeachȱstudentȱwithȱfourȱrowsȱandȱfiveȱcolumnsȱasȱ
shown.ȱWriteȱoneȱtermȱinȱeachȱspaceȱandȱleaveȱoneȱspaceȱopenȱforȱaȱfreeȱspace.ȱ
Makeȱtheȱpositioningȱofȱtheȱtermsȱdifferentȱonȱeachȱstudent’sȱsheet.ȱToȱsaveȱtime,ȱ
giveȱtheȱstudentsȱblankȱbingoȱsheetsȱandȱletȱthemȱwriteȱtheȱtermsȱinȱtheȱspaces.ȱAsȱ
eachȱdefinitionȱisȱread,ȱtheȱstudentsȱcoverȱtheȱappropriateȱterm.ȱIfȱaȱstudentȱcoversȱ
anȱincorrectȱterm,ȱheȱorȱsheȱmustȱremoveȱthatȱbingoȱchip.ȱTheȱgameȱcontinuesȱuntilȱ
aȱstudentȱcoversȱfourȱtermsȱinȱaȱhorizontal,ȱvertical,ȱorȱdiagonalȱrow.ȱ
decedentȱtestamentaryȱȱ
capacityȱ
EnochȱArdenȱholographicȱ
testateȱintestateȱtestatorȱnuncupativeȱ
codicilȱadministratorȱwillȱrightȱofȱelectionȱ
perȱstirpesȱ[FreeȱSpace]ȱtestamentaryȱȱ
intentȱ
perȱcapitaȱ
ȱ
Definitionsȱtoȱreadȱtoȱstudentsȱinȱanyȱorder:ȱAnswersȱ
ȱ
Toȱdieȱwithoutȱaȱvalidȱwillȱ(intestate)ȱ
senceȱ
Anȱoralȱwillȱ(nuncupative)ȱ
Theȱtypeȱofȱdistributionȱwherebyȱtheȱlinealȱdescendantsȱsplitȱ
(perȱcapita)ȱ
Chapter 20 Wills, Trusts, and Estates 4-69
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—1ȱENRICHMENTȱ
ȱ
Youȱlearnedȱinȱthisȱlessonȱaboutȱtheȱbenefitsȱofȱmakingȱaȱwill.ȱAȱwillȱisȱaȱlegalȱexȬ
pression,ȱusuallyȱrequiredȱbyȱtheȱlawsȱinȱmostȱstatesȱtoȱbeȱinȱwriting,ȱbyȱwhichȱaȱ
personȱdirectsȱhowȱherȱorȱhisȱpropertyȱisȱtoȱbeȱdistributedȱafterȱdeath.ȱBeneficiariesȱ
willȱpayȱfewerȱadministrativeȱexpensesȱandȱaȱreducedȱamountȱofȱestateȱtaxesȱwhenȱ
theȱdecedentȱleavesȱaȱwill.ȱReviewȱyourȱstateȱlawsȱorȱtalkȱwithȱaȱlawyerȱaboutȱyourȱ
state’sȱguidelinesȱinȱdrawingȱupȱaȱwill.ȱThenȱanswerȱtheȱquestionsȱbelow.ȱ
ȱ
1.ȱInȱmostȱstatesȱaȱpersonȱunderȱtheȱageȱofȱ18ȱisȱnotȱconsideredȱtoȱhaveȱtestamenȬ
taryȱcapacityȱtoȱmakeȱaȱwill.ȱWhatȱisȱtheȱlegalȱminimumȱageȱinȱyourȱstate?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱIfȱyouȱwereȱofȱlegalȱageȱandȱaskedȱanȱattorneyȱtoȱprepareȱaȱwillȱforȱyou,ȱwhatȱ
informationȱwouldȱyouȱneedȱtoȱprovide?ȱHowȱmuchȱwouldȱyouȱexpectȱtoȱpayȱ
forȱtheȱattorney’sȱservices?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱInȱyourȱstate,ȱmustȱtheȱwillȱbeȱinȱwritingȱandȱsigned?ȱHowȱmanyȱadultsȱmustȱ
witnessȱtheȱsigning?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
4.ȱIfȱyouȱwereȱpreparingȱaȱwill,ȱwhoȱwouldȱyouȱconsiderȱappointingȱasȱexecutorȱtoȱ
carryȱoutȱtheȱdirectionsȱinȱyourȱwill?ȱ
4-70 Chapter 20 Wills, Trusts, and Estates
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—2ȱQUIZȱ
LegalȱConceptsȱ
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱ
ȱAnswersȱ
1.ȱAȱtrustȱthatȱisȱcreatedȱduringȱtheȱlifetimeȱofȱtheȱsettlorȱisȱa(n)ȱȱ 1.ȱ______ ȱ
(a)ȱtestamentaryȱtrust,ȱ(b)ȱprivateȱtrust,ȱ(c)ȱinterȱvivosȱtrust.ȱ
2.ȱAȱtrustȱinȱwhichȱtheȱtermsȱareȱexplicitlyȱstatedȱbyȱtheȱsettlorȱisȱȱ 2.ȱ______ ȱ
a(n)ȱ(a)ȱprivateȱtrust,ȱ(b)ȱresultingȱtrust,ȱ(c)ȱexpressȱtrust.ȱ
4.ȱAȱtrustȱcreatedȱforȱtheȱfulfillmentȱofȱanȱaltruisticȱpurposeȱisȱa(n)ȱȱ 4.ȱ______ ȱ
(a)ȱexpressȱtrust,ȱ(b)ȱcharitableȱtrust,ȱ(c)ȱresultingȱtrust.ȱ
5.ȱTheȱlegalȱentityȱthatȱhasȱtheȱtitleȱtoȱtheȱsubjectȱpropertyȱisȱknownȱȱ 5.ȱ______ ȱ
asȱtheȱ(a)ȱtrustee,ȱ(b)ȱsettlor,ȱ(c)ȱbeneficiary.ȱ
6.ȱAȱtrustȱthatȱprotectsȱtheȱbeneficiary’sȱinterestȱinȱtheȱsubjectȱȱ 6.ȱ______ ȱ
propertyȱfromȱtheȱbeneficiary’sȱcreditorsȱisȱa(n)ȱ(a)ȱspendthriftȱȱ
trust,ȱ(b)ȱprivateȱtrust,ȱ(c)ȱexpressȱtrust.ȱ
7.ȱTheȱpartyȱforȱwhoseȱwellȬbeingȱaȱtrustȱisȱmanagedȱisȱtheȱ7.ȱ______ ȱ
(a)ȱtrustee,ȱ(b)ȱsettlor,ȱ(c)ȱbeneficiary.ȱ
8.ȱAȱtrustȱcreatedȱafterȱtheȱdeathȱofȱtheȱsettlorȱinȱaccordanceȱwithȱȱ 8.ȱ______ ȱ
directionsȱinȱhisȱorȱherȱwillȱisȱa(n)ȱ(a)ȱinterȱvivosȱtrust,ȱȱ
(b)ȱexpressȱtrust,ȱ(c)ȱtestamentaryȱtrust.ȱ
9.ȱAȱtrustȱthatȱisȱcreatedȱtoȱrequireȱaȱpersonȱholdingȱpropertyȱtoȱȱ 9.ȱ______ ȱ
10.ȱAȱtrustȱthatȱisȱformedȱwhenȱtheȱentityȱintendedȱtoȱreceiveȱtheȱȱ 10.ȱ______ ȱ
benefitȱofȱanȱexpressȱtrustȱcannotȱdoȱsoȱisȱaȱ(a)ȱconstructiveȱtrust,ȱȱ
(b)ȱresultingȱtrust,ȱ(c)ȱprivateȱtrust.ȱ
LegalȱApplicationȱ
11.ȱAbeȱandȱJoannaȱWiensȱhaveȱaȱmentallyȱhandicappedȱnephew.ȱTheyȱcreatedȱaȱ
privateȱtrustȱtoȱprovideȱforȱtheirȱnephewȱinȱcaseȱheȱshouldȱsurviveȱhisȱparents.ȱ
Ifȱtheȱnephewȱdiesȱbeforeȱhisȱparents,ȱwhatȱisȱtoȱbeȱdoneȱwithȱtheȱmoneyȱinȱtheȱ
trust?ȱExplainȱyourȱanswer.ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—2ȱPRACTICEȱACTIVITYȱ
Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ
spaceȱisȱneededȱforȱanswers.ȱ
ȱ
1.ȱGraceȱSimpsonȱgaveȱherȱtwoȱchildren,ȱTerranceȱandȱKathleen,ȱ$21,000ȱeach.ȱ
TerranceȱwasȱmarriedȱtoȱElizabeth.ȱKathleenȱwasȱalsoȱmarried.ȱTerranceȱandȱ
Kathleenȱeachȱusedȱtheirȱ$21,000ȱtoȱpurchaseȱannuityȱcontracts.ȱTheyȱnamedȱ
eachȱotherȱbeneficiariesȱofȱtheȱannuityȱcontract.ȱTerranceȱthenȱdied.ȱElizabethȱ
childrenȱwouldȱgetȱtheȱmoney.ȱElizabethȱcontendedȱthatȱtheȱagreementȱmadeȱ
betweenȱKathleenȱandȱTerranceȱwasȱreciprocalȱandȱthatȱKathleenȱshouldȱturnȱ
theȱmoneyȱoverȱtoȱElizabethȱandȱherȱchildren.ȱShouldȱtheȱmoneyȱgoȱtoȱKathleenȱ
orȱshouldȱaȱtrustȱbeȱsetȱupȱforȱElizabethȱandȱTerrance’sȱchildren?ȱExplain.ȱ[SimpȬ
ȱ
ȱ
2.ȱEdwinȱFicke’sȱwill,ȱexecutedȱthreeȱyearsȱbeforeȱhisȱdeath,ȱestablishedȱaȱtestaȬ
mentaryȱtrust.ȱTheȱtrustȱagreementȱprovidedȱthatȱuponȱtheȱdeathȱofȱhisȱlastȱsurȬ
vivingȱchild,ȱoneȬhalfȱofȱtheȱtrustȱwouldȱbeȱdividedȱequallyȱamongȱallȱhisȱlivingȱ
grandchildren.ȱYearsȱlater,ȱwhenȱhisȱlastȱsurvivingȱchildȱdied,ȱFickeȱhadȱfourȱ
notȱawardedȱsharesȱunderȱtheȱwill,ȱandȱtheȱbiologicalȱgrandchildrenȱappealedȱ
becauseȱtheȱadoptedȱgrandsonsȱwere.ȱWhoȱshouldȱtheȱtestamentaryȱtrustȱinȬ
clude?ȱExplain.ȱ[ConnecticutȱNationalȱBankȱ&ȱTrustȱv.ȱChadwick,ȱ585ȱA.2dȱ1189ȱ
4-72 Chapter 20 Wills, Trusts, and Estates
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—2ȱRETEACHȱ
ȱ
Directions:ȱUnscrambleȱtheȱlettersȱfollowingȱeachȱquestionȱandȱwriteȱtheȱanswerȱinȱ
theȱblankȱprovided.ȱ
ȱ
ȱȱ Answersȱ
ȱȱ1.ȱWhatȱisȱaȱtrustȱthatȱisȱcreatedȱduringȱtheȱlifeȬ
timeȱofȱtheȱsettlor?ȱsivtrvienoȱ
1._______________________ȱ
ȱȱ2.ȱȱ Whatȱkindȱofȱtrustȱprotectsȱtheȱbeneficiary’sȱ
interestȱinȱtheȱsubjectȱpropertyȱfromȱtheȱbenefiȬ
ciary’sȱcreditors?ȱtrhtsnedpifȱ
2._______________________ȱ
ȱȱ3.ȱWhoȱisȱtheȱpartyȱforȱwhoseȱwellȬbeingȱaȱtrustȱisȱ
managed?ȱabnecriayifȱ
3._______________________ȱ
ȱȱ4.ȱȱ Whatȱisȱaȱtrustȱinȱwhichȱtheȱtermsȱareȱexplicitlyȱ
statedȱbyȱtheȱsettlor?ȱsprexesȱ
4._______________________ȱ
ȱȱ5.ȱȱ Whatȱkindȱofȱtrustȱisȱcreatedȱafterȱtheȱdeathȱofȱ
theȱsettlorȱinȱaccordanceȱwithȱdirectionsȱinȱhisȱ
orȱherȱwill?ȱrtsanytemetaȱ
5._______________________ȱ
ȱȱ6.ȱWhatȱisȱtheȱcreatorȱofȱaȱtrustȱcalled?ȱtlesrotȱ6._______________________ȱ
ȱȱ7.ȱWhatȱkindȱofȱtrustȱisȱcreatedȱtoȱrequireȱaȱperȬ
sonȱholdingȱpropertyȱtoȱtransferȱitȱtoȱanotherȱ
toȱpreventȱwrongfulȱenrichmentȱofȱtheȱholder?ȱ
tevnoscrtuciȱ
7._______________________ȱ
ȱȱ8.ȱWhatȱisȱaȱtrustȱcreatedȱforȱtheȱfulfillmentȱofȱanȱ
altruisticȱpurpose?ȱahctrlbeiaȱ
8._______________________ȱ
intendedȱtoȱreceiveȱtheȱbenefitȱofȱanȱexpressȱ
trustȱcannotȱdoȱso?ȱsgtliurneȱ
10.ȱWhoȱisȱtheȱlegalȱentityȱthatȱhasȱtheȱtitleȱtoȱtheȱ
subjectȱproperty?ȱserteutȱ
10._______________________ȱ
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱLESSONȱ20—2ȱENRICHMENTȱ
TheȱusefulnessȱofȱtrustsȱwasȱdiscussedȱinȱthisȱlessonȱalongȱwithȱdescriptionsȱofȱvarȬ
iousȱtypesȱofȱtrusts.ȱTrustsȱcanȱbeȱcreatedȱwhenȱpeopleȱwishȱtoȱtransferȱtheȱcontrolȱ
ofȱsomeȱorȱallȱofȱtheirȱpropertyȱtoȱanotherȱpartyȱwithȱinstructionsȱonȱhowȱitȱisȱtoȱbeȱ
managedȱforȱtheȱbenefitȱofȱtheȱtransferorȱorȱaȱthirdȱparty.ȱInterviewȱpeopleȱwhoȱ
haveȱcreatedȱtrustsȱandȱthoseȱwhoȱareȱtheȱbeneficiaryȱofȱaȱtrust.ȱForȱeachȱexample,ȱ
answerȱtheȱfollowingȱquestions.ȱ
ȱ
1.ȱWhyȱwasȱtheȱtrustȱcreated?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
2.ȱWhoȱisȱtheȱsettlor?ȱTheȱtrustee?ȱTheȱbeneficiaryȱ(orȱbeneficiaries)?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
3.ȱIsȱtheȱtrustȱanȱinterȱvivosȱtrustȱorȱaȱtestamentaryȱtrust?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
4.ȱIsȱtheȱtrustȱanȱexpressȱtrust?ȱIfȱso,ȱisȱitȱaȱcharitableȱtrustȱorȱaȱprivateȱtrust?ȱ
ȱ
ȱ
ȱ
ȱ
ȱ
5.ȱOrȱisȱtheȱtrustȱanȱimpliedȱtrust?ȱIfȱso,ȱisȱitȱaȱresultingȱtrustȱorȱaȱconstructiveȱ
trust?ȱ
4-74 Chapter 20 Wills, Trusts, and Estates
STUDENT _______________________________________ CLASS _______________________ DATE _________
ȱ
TESTȱ
CHAPTERȱ20
SECTION I—IDENTIFY LEGAL TERMS
Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ
hetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱw
Answers
1
.ȱThoseȱwhoȱdieȱwithoutȱaȱvalidȱwillȱareȱsaidȱtoȱhaveȱdiedȱtestate.ȱ
2.ȱAȱwillȱisȱaȱlegalȱexpressionȱbyȱwhichȱaȱpersonȱdirectsȱhowȱhisȱorȱherȱ
propertyȱisȱtoȱbeȱdistributedȱafterȱdeath.ȱ
3
.ȱOnceȱmade,ȱaȱwillȱcannotȱbeȱchangedȱorȱcanceled.ȱ
4.ȱSomeȱstatutoryȱprovisionsȱallowȱcertainȱrelativesȱtoȱoverrideȱtheȱ
will’sȱtermsȱandȱreceiveȱmoreȱofȱtheȱestateȱthanȱtheȱwillȱprovided.ȱ
5.ȱTheȱpropertyȱofȱtheȱdeceasedȱescheatsȱtoȱtheȱstateȱifȱthereȱareȱnoȱ
inheritors.ȱ
6
.ȱCodicilsȱcanȱbeȱmadeȱtoȱaccomplishȱanyȱconceivableȱlegalȱpurpose.ȱ
7.ȱAȱtrustȱcreatedȱforȱtheȱfulfillmentȱofȱanȱaltruisticȱpurposeȱisȱknownȱ
asȱaȱspendthriftȱtrust.ȱ
8.ȱAȱresultingȱtrustȱisȱformedȱwhenȱtheȱentityȱintendedȱtoȱreceiveȱtheȱ
benefitȱofȱanȱexpressȱtrustȱcannotȱdoȱso.ȱ
9
.ȱTheȱcreatorȱofȱaȱtrustȱisȱknownȱasȱtheȱtrustee.ȱ
10.ȱTrustsȱareȱnamedȱbyȱtheȱtimingȱandȱpurposeȱofȱtheirȱcreation.ȱ
ȱ1.ȱȱ ȱ
ȱ2.ȱȱ ȱ
ȱ
ȱ3.ȱȱ ȱ
ȱ4.ȱȱ ȱ
ȱ
ȱ5.ȱȱ ȱ
ȱ
ȱ6.ȱȱ ȱ
ȱ7.ȱȱ ȱ
ȱ
ȱ8.ȱȱ ȱ
ȱ
ȱ9.ȱȱ ȱ
ȱ10.ȱȱ ȱ
SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS
Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ
representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ
ȱȱȱ Answersȱ
11.ȱTheȱmakerȱofȱaȱwillȱisȱproperlyȱcalledȱ(a)ȱanȱadministrator,ȱ(b)ȱanȱ
executor,ȱ(c)ȱaȱtestator,ȱ(d)ȱaȱtrusteeȱ
11.ȱ_____ȱ
12.ȱAȱcourtȬappointedȱpersonalȱrepresentativeȱoverseeingȱanȱestateȱisȱ
calledȱ(a)ȱanȱadministrator,ȱ(b)ȱanȱexecutor,ȱ(c)ȱaȱtestator,ȱ(d)ȱaȱtrusȬ
teeȱ
12.ȱ_____ȱ
13.ȱInȱmostȱstatesȱaȱpersonȱunderȱageȱ18ȱdoesȱnotȱhaveȱ(a)ȱtestamenȬ13.ȱ_____ȱ
Chapter 20 Wills, Trusts, and Estates 4-75
taryȱcapacity,ȱ(b)ȱtestamentaryȱintent,ȱ(c)ȱtestamentaryȱformality,ȱ
(d)ȱallȱofȱtheseȱ
14.ȱAȱwillȱonlyȱtakesȱeffectȱ(a)ȱuponȱtheȱdeathȱofȱtheȱmaker,ȱ(b)ȱuponȱ
theȱwitnessedȱsigningȱofȱit,ȱ(c)ȱuponȱtheȱofficialȱrecordingȱofȱit,ȱ(d)ȱ
uponȱtheȱoneȬyearȱanniversaryȱofȱtheȱdeathȱofȱtheȱmakerȱ
14.ȱ_____ȱ
15.ȱIfȱproclaimedȱduringȱtheȱmaker’sȱlastȱillnessȱorȱbyȱserviceȱpersonȬ
nelȱonȱactiveȱduty,ȱsomeȱstatesȱwillȱrecognizeȱaȱ(a)ȱcodicil,ȱ(b)ȱholoȬ
graphicȱwill,ȱ(c)ȱnuncupativeȱwill,ȱ(d)ȱtestamentaryȱtrustȱ
15.ȱ_____ȱ
16.ȱWhenȱaȱseparateȱentityȱunderȱlawȱbecomesȱtheȱtransfereeȱofȱtheȱ
property,ȱitȱcreatesȱ(a)ȱanȱestate,ȱ(b)ȱaȱcodicil,ȱ(c)ȱaȱcouncil,ȱ(d)ȱaȱ
trustȱ
16.ȱ_____ȱ
17.ȱAȱtrustȱcreatedȱduringȱtheȱlifetimeȱofȱtheȱsettlorȱisȱ(a)ȱaȱcharitableȱ
trust,ȱ(b)ȱanȱinterȱvivosȱtrust,ȱ(c)ȱaȱspendthriftȱtrust,ȱ(d)ȱaȱtestamenȬ
taryȱtrustȱ
17.ȱ_____ȱ
18ȱTheȱtrustȱthatȱprotectsȱtheȱbeneficiary’sȱinterestȱinȱtheȱsubjectȱpropȬ
ertyȱfromȱtheȱbeneficiary’sȱcreditorsȱisȱ(a)ȱaȱcharitableȱtrust,ȱ(b)ȱanȱ
interȱvivosȱtrust,ȱ(c)ȱaȱspendthriftȱtrust,ȱ(d)ȱaȱtestamentaryȱtrustȱ
18.ȱ_____ȱ
19.ȱAȱconstructiveȱtrustȱisȱaȱtypeȱofȱ(a)ȱcharitableȱtrust,ȱ(b)ȱexpressȱ
trust,ȱ(c)ȱimpliedȱtrust,ȱ(d)ȱprivateȱtrustȱ
19.ȱ_____ȱ
20.ȱTheȱclearȱintentionȱtoȱmakeȱaȱwillȱwithoutȱundueȱinfluenceȱofȱothȬ
ersȱisȱcalledȱ(a)ȱtestamentaryȱcapacity,ȱ(b)ȱtestamentaryȱintent,ȱ(c)ȱ
testamentaryȱformality,ȱ(d)ȱallȱofȱtheseȱ
20.ȱ_____ȱ
SECTION III—APPLY LEGAL PRACTICES
21.ȱEstebanȱwasȱkilledȱinȱanȱautomobileȱaccidentȱwhileȱreturningȱhomeȱfromȱtheȱ
hospitalȱafterȱwitnessingȱtheȱbirthȱofȱhisȱthirdȱson.ȱEstebanȱleftȱnoȱwill.ȱHeȱhasȱ
twoȱsonsȱfromȱaȱpreviousȱmarriageȱandȱthreeȱstepchildren,ȱplusȱthisȱnewȱbabyȱ
inȱhisȱpresentȱmarriage.ȱHowȱwillȱthisȱbeȱdivided?ȱDoȱbothȱhisȱwifeȱandȱformerȱ
wifeȱgetȱaȱportion?ȱWhatȱaboutȱtheȱstepchildren?ȱIfȱheȱleftȱnoȱinheritanceȱbutȱ
tremendousȱdebt,ȱisȱtheȱdebtȱdistributedȱalso?ȱExplainȱyourȱanswer.ȱ
ANSWERS
Lessonȱ20—1ȱ
Quiz
Practice Activity
1.ȱTheȱcourtȱdeclinedȱtoȱadmitȱtheȱwillȱtoȱprobate,ȱandȱtheȱpropertyȱwentȱbyȱintesȬ
2.ȱTheȱcourtȱheldȱthatȱbecauseȱitȱwasȱimpossibleȱtoȱascertainȱwhoȱtheȱFrankȱwasȱ
Reteach
Enrichment Activity
Lessonȱ20—2ȱ
Quiz
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