Question 1

What is intestate succession?

Accepted Answer

If a person dies without a will or trust-that is,intestate-or if his or her will or trust fails for some legal reason,the property is distributed to his or her relatives pursuant to a state's intestacy statute.Relatives who receive property under intestacy statutes are called heirs.Although intestacy statutes differ from state to state,the general rule is that the deceased's real property is distributed according to the intestacy statute of the state where the real property is located,and the deceased's personal property is distributed according to the intestacy statute of the state where the deceased had his or her permanent residence.Intestacy statutes usually leave the deceased's property to his or her heirs in this order: spouse,children,lineal heirs,collateral heirs,and other next of kin.If the deceased has no surviving relatives,then the deceased's property escheats to the state.In-laws do not inherit under most intestacy statutes.

Question 2

Which of the following beneficiaries is considered a lineal descendant of the testator?

Accepted Answer

A) a parent 
B) a child 
C) a spouse 
D) a sibling 
A) a parent 
B) a child 
C) a spouse 
D) a sibling B

Question 3

Who is a beneficiary of a will?

Accepted Answer

A) a person assigned in a will to create a trust 
B) a person allowed to transfer the testator's legal title to property to another person 
C) a person designated in the will to receive the testator's property 
D) a person nominated in a living will to make all health care decisions in accordance with the testator's wishes 
A) a person assigned in a will to create a trust 
B) a person allowed to transfer the testator's legal title to property to another person 
C) a person designated in the will to receive the testator's property 
D) a person nominated in a living will to make all health care decisions in accordance with the testator's wishes C

Question 4

Nuncupative wills are legally binding oral wills that are made on a testator's deathbed in the absence of witnesses.

Accepted Answer

A) True 
 B)False

Question 5

Wilma buys a painting that is to be sold at an auction next week,but she has an unforeseen engagement that requires her to go out of town on the day of the auction.She asks her sister,Sara,to attend the auction and bid for the painting.If the sale is successful,Sara is to claim legal title to the painting until Wilma returns.What kind of trust is created between Wilma and Sara?

Accepted Answer

A) a charitable trust 
B) a testamentary trust 
C) a token trust 
D) a resulting trust 
A) a charitable trust 
B) a testamentary trust 
C) a token trust 
D) a resulting trust

Question 6

Chen Stevenson died at the age of 85 leaving behind all his property to Phillip Miller,his butler.The news of the new will that Chen executed three months before his death naming Phillip as the sole beneficiary surprised everyone.By his prior will,he had bequeathed his estate to his two daughters and three grandchildren on a per capita basis.The court took up proceedings to determine the validity of his new will because Chen's rejection of his daughters and grandchildren in his will was uncharacteristic of him.The court most likely suspected this change to be a case of ________.

Accepted Answer

A) constructive trust 
B) undue hardship 
C) undue influence 
D) spendthrift trust 
A) constructive trust 
B) undue hardship 
C) undue influence 
D) spendthrift trust

Question 7

What is a codicil?

Accepted Answer

A) a type of will that cannot be amended once created 
B) a separate document that must be executed to amend a will 
C) a will that has been attested by the beneficiary of the will 
D) a duplicate of a will that is used in case the original is destroyed 
A) a type of will that cannot be amended once created 
B) a separate document that must be executed to amend a will 
C) a will that has been attested by the beneficiary of the will 
D) a duplicate of a will that is used in case the original is destroyed

Question 8

A will is a testamentary deposition of property.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a similarity between a living trust and an inter vivos trust?

Accepted Answer

A) both of them are subject to probate 
B) both of them require the beneficiaries to be present during the time of creation of the trust 
C) both of them are created while the settlor is still alive 
D) both of them are free from changes resulting from operations of law like annulment 
A) both of them are subject to probate 
B) both of them require the beneficiaries to be present during the time of creation of the trust 
C) both of them are created while the settlor is still alive 
D) both of them are free from changes resulting from operations of law like annulment

Question 10

A testamentary trust is created while the settlor is still alive.

Accepted Answer

A) True 
 B)False

Question 11

A Totten trust is considered a tentative trust because a trustee can add or withdraw funds from the trustee's account.

Accepted Answer

A) True 
 B)False

Question 12

In a spendthrift trust,all control over the trust is removed from the beneficiary.

Accepted Answer

A) True 
 B)False

Question 13

What is the attestation clause for a will?

Accepted Answer

A) the condition that the witness must reside in the jurisdiction in which the testator is domiciled 
B) the stipulation that only the testator's attorney can be a witness to the will 
C) the requirement of signatures of witnesses on a will after that of the testator's 
D) the requirement of the beneficiary's presence when making the will 
A) the condition that the witness must reside in the jurisdiction in which the testator is domiciled 
B) the stipulation that only the testator's attorney can be a witness to the will 
C) the requirement of signatures of witnesses on a will after that of the testator's 
D) the requirement of the beneficiary's presence when making the will

Question 14

A living trust is a document that states which lifesaving measures the signor does and does not want.

Accepted Answer

A) True 
 B)False

Question 15

Mr.Raynold writes a will placing his estate in a trust on his death.He names a local bank as the trustee to administer the trust and invest its assets.The trust provides that when his grandson reaches the age of 23,the trust will terminate,and he will be given legal title to the assets.Mr.Raynold dies when the grandson is 12 years old.At the age of 23,the grandson inherits the title to the assets.What kind of trust is created by Mr.Raynold in this scenario?

Accepted Answer

A) an inter vivos trust 
B) a testamentary trust 
C) a constructive trust 
D) a resulting trust 
A) an inter vivos trust 
B) a testamentary trust 
C) a constructive trust 
D) a resulting trust

Question 16

What is a person's right to die? What are the views regarding the legality of euthanasia in the United States?

Accepted Answer

One legal issue that has been prominent

Question 17

An oral will that is made before a witness during the testator's last illness is defined as a ________.

Accepted Answer

A) holographic will 
B) nuncupative will 
C) living will 
D) joint will 
A) holographic will 
B) nuncupative will 
C) living will 
D) joint will

Question 18

Which of the following is a benefit of a living trust?

Accepted Answer

A) It helps reduce estate taxes more than a will does. 
B) It helps avoid probate associated with the property. 
C) It is not subject to property division on divorce. 
D) It does not allow creditors to obtain liens against the property. 
A) It helps reduce estate taxes more than a will does. 
B) It helps avoid probate associated with the property. 
C) It is not subject to property division on divorce. 
D) It does not allow creditors to obtain liens against the property.

Question 19

Reductions under the doctrine of abatement are proportionate for all beneficiaries ________.

Accepted Answer

A) when there are residuary gifts and special gifts 
B) when there are residuary and general gifts 
C) when there are only general gifts 
D) when there are only residuary gifts 
A) when there are residuary gifts and special gifts 
B) when there are residuary and general gifts 
C) when there are only general gifts 
D) when there are only residuary gifts

Question 20

Pursuant to per capita distribution,all the lineal descendants equally share the property of the estate.

Accepted Answer

A) True 
 B)False

Exam 52: Wills, trusts, and Estates

What is intestate succession?

Which of the following beneficiaries is considered a lineal descendant of the testator?

Who is a beneficiary of a will?

Nuncupative wills are legally binding oral wills that are made on a testator's deathbed in the absence of witnesses.

What is a codicil?

A will is a testamentary deposition of property.

Which of the following is a similarity between a living trust and an inter vivos trust?

A testamentary trust is created while the settlor is still alive.

A Totten trust is considered a tentative trust because a trustee can add or withdraw funds from the trustee's account.

In a spendthrift trust,all control over the trust is removed from the beneficiary.

What is the attestation clause for a will?

A living trust is a document that states which lifesaving measures the signor does and does not want.

What is a person's right to die? What are the views regarding the legality of euthanasia in the United States?

An oral will that is made before a witness during the testator's last illness is defined as a ________.

Which of the following is a benefit of a living trust?

Reductions under the doctrine of abatement are proportionate for all beneficiaries ________.

Pursuant to per capita distribution,all the lineal descendants equally share the property of the estate.

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Family Law

International and World Trade Law

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