Exam 43: Insurance, Wills, and Trusts

In most states, the testator's marriage after the execution of a will may affect the distribution of the estate.

Intestacy laws determine the distribution of property of one who dies without a valid will, and attempt to carry out the likely intent and wishes of the decedent.

Once a will is admitted to probate, the decedent's family members can agree among themselves how to distribute the estate, and no court order is needed to clear title to the assets.

Cutting Edge Corporation makes and sells knives, scissors, garden shears, and other cutting devices. To cover injuries to consumers if the products prove defective, Cutting Edge should obtain

Flem owns shares of stock in Gas & Oil Inc. To create a trust with the stock for the benefit of his spouse Hanna, Flem must convey the shares to

A valid will is one that represents the maker's intent to transfer and distribute his or her property.

Courts interpret the words used in an insurance policy as if most people have the special training necessary to understand the intricate terminology.

Idina executes a deed conveying ownership of her home to a trust for the benefit of her son Jim. The trust designates Idina as the trustee. When she dies, the house will pass without going through probate to

Molly is not married and has no children. She executes a will, disposing of her estate to her sister Nina. Later, Molly marries Owen. They have no children. Molly does not execute a new will before she dies. With respect to Molly's estate, Owen is entitled to

Customarily, an insurance company offers to insure individuals and businesses by advertising for applicants, who can either accept or reject the offer.

With a resulting trust, assets held in the trust can pass to the heirs after going through probate.

The elements of a trust include actual delivery by the grantor to the beneficiary with the intent of passing title.