Exam 43: Insurance, Wills, and Trusts

Because a general bequest or devise does not single out any particular item of property to be transferred by will, a testator does not have to know the nature and extent of his or her property to create a valid will.

Les executes a will in which he leaves everything to his spouse, Mindy, and in which he appoints Norma to administer the estate. The will must be signed by

The formalities of a will are intended to ensure that the testator understood his or her actions at the time a will was made and to help prevent fraud.

Maria does not execute a will before she dies. The distribution of her estate is regulated by

Lena executes a separate written instrument to revoke her prior will. This separate document is

A life insurance company insures a large number of people with the knowledge that only a small proportion of them will die in any one year. The large number of premiums provides the funds to pay for the small number of deaths. This is

Finn does not execute a will before he dies, with no surviving spouse or child. His survivors include his grandson Gage and his niece Hailey. In most states, his estate would pass to

Sally handwrites her will on a sheet of blank paper. This will is

If a will does not provide how an estate will be distributed to grandchildren, under the per stirpes method of distribution, all heirs in a certain class inherit equally.

Estimable Credit Company loans funds to Farmland Granaries, LLC, to buy a silo. Estimable obtains an insurance policy from Grangers Insurance, Inc., to cover the silo. Farmland also obtains a policy from Grangers to cover the silo. Later, Farmland sells the silo to Hi-Yield Harvest Company but keeps the policy. Hi-Yield also obtains a policy from Grangers to cover the silo. Estimable agrees to finance Hi-Yield's purchase of the property. A fire totally destroys the silo. Who can recover for the loss?

In an irrevocable living trust, legal title to the trust property passes to the beneficiary.

A divorce occurring after a will has been written does not revoke dispositions of property made under the will to the former spouse.

Insurance policies differ in relation to the interests that they protect because the types of losses that are expected vary with the nature of an activity.

Under intestacy laws, a surviving spouse receives the decedent's entire estate.

Kit has two children, Lea and Merl, both of whom predecease Kit. Lea is survived by her son Nat. Merl is survived by her daughters Opal and Pearl. On Kit's death, if the distribution of the estate is per capita, Pearl will receive

Dawn applies for a life insurance policy with Equity Insurance Company through Fletch, an agent who works for Equity. Dawn pays the initial premium. Fletch writes a binder, which

Jason does not execute a will before he dies. With respect to his estate, the assets are distributed first to

Miles obtains a property insurance policy from Nova Insurance Company for Miles's restored 1957 Chevy. Nova can cancel the policy if Miles

Emmett has two children, Frank and Gene, both of whom predecease Emmett. Frank is survived by his daughter Heidi. Gene is survived by his sons Ike and Jake. On Emmett's death, if the distribution of his estate is per stirpes, Heidi will receive

Rita is the chief executive officer for Sales Inc., a successful market research firm. The company obtains insurance on Rita's life from Tempo Insurance Company. This policy is