Question 1

A trust will fail for lack of:

Accepted Answer

A)  definite and specific property forming the trust corpus. 
B)  consideration. 
C)  a trustee. 
D)  All of these. 
A)  definite and specific property forming the trust corpus. 
B)  consideration. 
C)  a trustee. 
D)  All of these.

Question 2

Which of the following would be charged to the life tenant's interest in the course of administering a trust?

Accepted Answer

A)  Ordinary repairs to trust property. 
B)  Expenses of selling a trust investment. 
C)  Permanent improvements to the trust property. 
D)  The costs of establishing the trust. 
A)  Ordinary repairs to trust property. 
B)  Expenses of selling a trust investment. 
C)  Permanent improvements to the trust property. 
D)  The costs of establishing the trust.

Question 3

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about wills is correct?

Accepted Answer

A)  Another writing may be incorporated by reference into a will. 
B)  The testator cannot have any "help" in signing a will. 
C)  A will must be written on one piece of paper. 
D)  The testator must sign his or her full name. 
A)  Another writing may be incorporated by reference into a will. 
B)  The testator cannot have any "help" in signing a will. 
C)  A will must be written on one piece of paper. 
D)  The testator must sign his or her full name.

Question 5

Megan, who has no heirs or next of kin, makes a will leaving her estate to her best friend, Pat.If Megan's will is witnessed by only two instead of three people as required by her state statute, upon her death her estate will:

Accepted Answer

A)  go to Pat without court involvement. 
B)  escheat to the state. 
C)  be given to a charity as determined by the probate court. 
D)  go through probate, at which time the court will try to determine Megan's intent as to disposition and follow that intent. 
A)  go to Pat without court involvement. 
B)  escheat to the state. 
C)  be given to a charity as determined by the probate court. 
D)  go through probate, at which time the court will try to determine Megan's intent as to disposition and follow that intent.

Question 6

The courts may create implied trusts.

Accepted Answer

A) True 
 B)False

Question 7

In the case of Keeney v.Keeney , the court found:

Accepted Answer

A)  a totten trust is a tentative trust and the transfer of ownership becomes complete only upon the depositor's death. 
B)  a constructive trust is created by equity regardless of the intention of the parties to create a trust where legal title to property is obtained through fraud or undue influence rendering it unconscionable for the holder of legal title to retain the property. 
C)  the existence of a confidential relationship prohibits the trustee from seeking any personal benefit. 
D)  intention of the parties is the sole consideration in determining the existence of a trust. 
A)  a totten trust is a tentative trust and the transfer of ownership becomes complete only upon the depositor's death. 
B)  a constructive trust is created by equity regardless of the intention of the parties to create a trust where legal title to property is obtained through fraud or undue influence rendering it unconscionable for the holder of legal title to retain the property. 
C)  the existence of a confidential relationship prohibits the trustee from seeking any personal benefit. 
D)  intention of the parties is the sole consideration in determining the existence of a trust.

Question 8

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.

Accepted Answer

A) True 
 B)False

Question 9

A completely handwritten will is valid only if witnessed.

Accepted Answer

A) True 
 B)False

Question 10

If a person dies intestate, his property will be:

Accepted Answer

A)  given to his beneficiaries. 
B)  passed to his children. 
C)  distributed as prescribed by the state. 
D)  kept by the state. 
A)  given to his beneficiaries. 
B)  passed to his children. 
C)  distributed as prescribed by the state. 
D)  kept by the state.

Question 11

A second will automatically revokes an earlier will if it is wholly inconsistent.

Accepted Answer

A) True 
 B)False

Question 12

In order to be valid, a will must generally include all but which one of the following?

Accepted Answer

A)  Signature of the testator. 
B)  Signatures of witnesses. 
C)  A written document. 
D)  Signature of the executor. 
A)  Signature of the testator. 
B)  Signatures of witnesses. 
C)  A written document. 
D)  Signature of the executor.

Question 13

Almost all jurisdictions require that:

Accepted Answer

A)  a charitable trust have at least two trustees. 
B)  express trusts of real property be in writing. 
C)  an inter vivos trust have at least two trustees. 
D)  trusts have at least four witnesses. 
A)  a charitable trust have at least two trustees. 
B)  express trusts of real property be in writing. 
C)  an inter vivos trust have at least two trustees. 
D)  trusts have at least four witnesses.

Question 14

Of the following elements, which one is NOT required to create an enforceable trust?

Accepted Answer

A)  Consideration. 
B)  A beneficiary. 
C)  Legal capacity. 
D)  Specific property. 
A)  Consideration. 
B)  A beneficiary. 
C)  Legal capacity. 
D)  Specific property.

Question 15

In 2000, Jack executed a valid will in which he left his entire estate to the Heart Fund.In 2008, Jack was declared incompetent and committed to an institution.At his death in 2015, his son, Brian, who was his sole survivor, contested the will claiming that Jack was obviously incompetent.Will Brian prevail with this argument? Explain.

Accepted Answer

No, Brian will not be likely to prevail

Question 16

Testamentary capacity refers to:

Accepted Answer

A)  the same capacity as required to contract. 
B)  the age of the testator. 
C)  the ability to understand the nature and extent of one's property, to appreciate the natural objects of one's bounty, and the ability to formulate an orderly plan of disposition. 
D)  the influence of others over the testator. 
A)  the same capacity as required to contract. 
B)  the age of the testator. 
C)  the ability to understand the nature and extent of one's property, to appreciate the natural objects of one's bounty, and the ability to formulate an orderly plan of disposition. 
D)  the influence of others over the testator.

Question 17

A statement signed by the required number of witnesses who observe the execution of a valid will is called a(n):

Accepted Answer

A)  fiduciary clause. 
B)  ambulatory clause. 
C)  attestation clause. 
D)  validity clause. 
A)  fiduciary clause. 
B)  ambulatory clause. 
C)  attestation clause. 
D)  validity clause.

Question 18

The owner of legal title to the property in a trust is the:

Accepted Answer

A)  trustee. 
B)  settlor. 
C)  grantor. 
D)  beneficiary. 
A)  trustee. 
B)  settlor. 
C)  grantor. 
D)  beneficiary.

Question 19

Each trust has which of the following?

Accepted Answer

A)  Corpus. 
B)  Testator. 
C)  Executor. 
D)  All of these. 
A)  Corpus. 
B)  Testator. 
C)  Executor. 
D)  All of these.

Question 20

The characteristics of a spendthrift trust include which of the following?

Accepted Answer

A)  Spendthrift provisions are not valid in most states. 
B)  A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income. 
C)  Trust creditors can never seize income from a spendthrift trust. 
D)  All of these. 
A)  Spendthrift provisions are not valid in most states. 
B)  A settlor may provide, in a spendthrift trust, that the beneficiary cannot, by assignment or otherwise, impair her rights to receive principal or income. 
C)  Trust creditors can never seize income from a spendthrift trust. 
D)  All of these.

Exam 50: Trusts and Wills

A trust will fail for lack of:

Which of the following would be charged to the life tenant's interest in the course of administering a trust?

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.

Which of the following statements about wills is correct?

Megan, who has no heirs or next of kin, makes a will leaving her estate to her best friend, Pat.If Megan's will is witnessed by only two instead of three people as required by her state statute, upon her death her estate will:

The courts may create implied trusts.

In the case of Keeney v.Keeney , the court found:

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.

A completely handwritten will is valid only if witnessed.

If a person dies intestate, his property will be:

A second will automatically revokes an earlier will if it is wholly inconsistent.

In order to be valid, a will must generally include all but which one of the following?

Almost all jurisdictions require that:

Of the following elements, which one is NOT required to create an enforceable trust?

Testamentary capacity refers to:

A statement signed by the required number of witnesses who observe the execution of a valid will is called a(n):

The owner of legal title to the property in a trust is the:

Each trust has which of the following?

The characteristics of a spendthrift trust include which of the following?

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Filters