Exam 43: Insurance, wills, and Trusts

A person who obtains insurance from an insurance company's agent is not usually protected until a formal written policy is issued.

Aron owns a certificate of deposit with Beth,his sister,and an apartment building with Carl,his brother,in both cases as a joint tenant. Aron,a partner with Debra in Aron & Debra Accountants,obtains a life insurance policy with Debra as the designated beneficiary. Aron writes a will that gives particular items of personal property,as well as specific amounts of cash,to his children and his friends. The will leaves the residue of the estate to Eve,Aaron's favorite cousin. Carl dies. Aron,on his deathbed,makes a gift to the United Way. Will the certificate of deposit,the apartment building,the proceeds from the life insurance policy,and the gift to the United Way become part of Aron's estate and be distributed under the will? If not,how will these items be distributed and to whom?

A word such as "Mom" can qualify as a signature on a will.

Risk management is the transfer of certain risks from an individual to an insurance company.

A will is required to be in writing only if real property is being transferred.

A trust that a grantor executes orally in contemplation of immediate death is a testamentary trust.

Ralph creates a trust by his will for the benefit of Stella and her family to come into existence on Ralph's death. This is

Greg obtains from Helpful Insurance Company a policy that provides that Greg has thirty days after a premium's due date to pay it before the policy will be canceled. This is

Ann and Burt are partners in Delta Associates. Burt takes advantage of a partnership opportunity for personal gain that causes Delta's business to suffer. A court orders Burt to hold the profits in trust for the partnership. This is

According to the terms of Ramona's will,specific gifts are made,and taxes and other estate expenses and debts are paid. The assets of Ramona's estate that remain are

In an abatement,the legatees receive increased benefits.

U-Rents Company wants to insure the equipment that it rents to consumers. To obtain insurance,U-Rents must have an insurable interest in the property

The insured can cancel a policy at any time.

A divorce does not necessarily revoke an entire will.

When there is an ambiguity in an insurance policy,the provision generally is interpreted against the insurance company.

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?

When a person dies without a valid will,and no heirs exist,the state will assume ownership of the property.

The assets in Doug's estate,including the value of his home on Elm Street and its contents,are insufficient to pay in full all of the gifts provided for in his will. His heirs will receive

Anna obtains a business liability insurance policy for her Brew & Bagels Coffee Shop from ChoiceFirst Insurance Company. When an event occurs that gives rise to a claim,each party has a duty to

A codicil is a clause in a will affirming an administrator's testamentary capacity.