Question 1

A personal representative of an estate would breach his/her fiduciary duty if the personal representative:

Accepted Answer

A) combined personal funds with funds of the estate so that both could purchase treasury bills. 
B) represented the estate in a lawsuit brought against it by a disgruntled relative of the decedent. 
C) distributed property in satisfaction of the decedent's debts. 
D) engaged a non-CPA to prepare the records for the estate's final accounting. 
A) combined personal funds with funds of the estate so that both could purchase treasury bills. 
B) represented the estate in a lawsuit brought against it by a disgruntled relative of the decedent. 
C) distributed property in satisfaction of the decedent's debts. 
D) engaged a non-CPA to prepare the records for the estate's final accounting.

Question 2

John died without leaving a will.He left a wife and two children.He lived in Boise,Idaho,and he owned a ski condo in Aspen,Colorado.How will John's ski condo be distributed upon his death?

Accepted Answer

A) The law of intestate succession of Idaho will be followed,because Idaho is the state where John was domiciled at the time of his death. 
B) The law of intestate succession of Colorado will be followed,because Colorado is where John's condo is located. 
C) The federal law of intestate succession will be followed,because John's property is located in more than one state. 
D) The property will escheat to the State of Idaho. 
A) The law of intestate succession of Idaho will be followed,because Idaho is the state where John was domiciled at the time of his death. 
B) The law of intestate succession of Colorado will be followed,because Colorado is where John's condo is located. 
C) The federal law of intestate succession will be followed,because John's property is located in more than one state. 
D) The property will escheat to the State of Idaho.

Question 3

The residuary is the remaining property of a person's estate after bequests and devises have been made.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is most likely to breach one of the trustee's fiduciary duties?

Accepted Answer

A) Selling stock owned by the trust to realize capital gains. 
B) Selling stock owned by the trust because it has declined in value over the last three years. 
C) Delegating the selection of trust investments to an investment advisor. 
D) Delegating the preparation of statements of account to an accountant. 
A) Selling stock owned by the trust to realize capital gains. 
B) Selling stock owned by the trust because it has declined in value over the last three years. 
C) Delegating the selection of trust investments to an investment advisor. 
D) Delegating the preparation of statements of account to an accountant.

Question 5

A ________ is oral in nature.

Accepted Answer

A) nuncupative will 
B) holographic will 
C) notarial will 
D) self-proved will 
A) nuncupative will 
B) holographic will 
C) notarial will 
D) self-proved will

Question 6

Which of the following statements about testamentary capacity to make a valid will is false?

Accepted Answer

A) To be of "sound mind" a person need only realize that she is making a will. 
B) In most states,a person needs to be 18 years old. 
C) A person that moves in and out of periods of lucidity can still have testamentary capacity if she executed her will during a lucid period. 
D) The standard for mental capacity to make a will is fairly low. 
A) To be of "sound mind" a person need only realize that she is making a will. 
B) In most states,a person needs to be 18 years old. 
C) A person that moves in and out of periods of lucidity can still have testamentary capacity if she executed her will during a lucid period. 
D) The standard for mental capacity to make a will is fairly low.

Question 7

A testator can revoke a will before his death.

Accepted Answer

A) True 
 B)False

Question 8

Sarah is 75 years old.She has a serious illness,but she does not want to be kept alive by extraordinary medical technology.Specifically,she does not want to be kept alive by a respirator.Which of the following should Sarah use to make sure that her wishes are followed?

Accepted Answer

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

Question 9

A bequest is a gift of personal property or money provided in a will.

Accepted Answer

A) True 
 B)False

Question 10

A bequest is also called a(n):

Accepted Answer

A) devise. 
B) legacy. 
C) issue. 
D) deed. 
A) devise. 
B) legacy. 
C) issue. 
D) deed.

Question 11

If an ambiguity or conflict arises when people read and/or interpret a will,courts will:

Accepted Answer

A) look for evidence of the intent of the testator within the will. 
B) ask the family members or beneficiaries for their preference(s). 
C) appoint a probate referee to decide the future of the will. 
D) declare the will void or invalidate it due to its ambiguity. 
A) look for evidence of the intent of the testator within the will. 
B) ask the family members or beneficiaries for their preference(s). 
C) appoint a probate referee to decide the future of the will. 
D) declare the will void or invalidate it due to its ambiguity.

Question 12

When Rita Ryan died,she left a will naming her children,John and Dale,as the sole beneficiaries.In her will,Rita designated John as the executor of her estate and excused John from posting a bond as executor.At the time of Rita's death,she owned a parcel of land with her sister,Ann,as joint tenants with right of survivorship.With respect to Rita's interest in the land,it will pass to:

Accepted Answer

A) John and Dale outside of Rita's estate by right of survivorship. 
B) John and Dale through Rita's estate after the will is probated. 
C) Ann through Rita's estate after the will is probated. 
D) Ann outside of Rita's estate by right of survivorship. 
A) John and Dale outside of Rita's estate by right of survivorship. 
B) John and Dale through Rita's estate after the will is probated. 
C) Ann through Rita's estate after the will is probated. 
D) Ann outside of Rita's estate by right of survivorship.

Question 13

Property held in joint tenancy or tenancy by the entirety is not controlled by a will.

Accepted Answer

A) True 
 B)False

Question 14

If the deceased had no surviving relatives,the property escheats to ________.

Accepted Answer

A) the executor 
B) a charity picked by an assigned trustee 
C) his friends 
D) the state 
A) the executor 
B) a charity picked by an assigned trustee 
C) his friends 
D) the state

Question 15

A person can have multiple domiciles at a time.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the source of law for regulating the distribution of property upon death?

Accepted Answer

A) State statutes and common law 
B) State statutes only 
C) Federal statutes and common law 
D) Federal statutes only 
A) State statutes and common law 
B) State statutes only 
C) Federal statutes and common law 
D) Federal statutes only

Question 17

Steve and Bob own real property as joint tenants with right of survivorship.Steve decided that he wanted to own the entire property himself,so he killed Bob.Due to a technicality,Steve was acquitted of any criminal charges.Nevertheless,Bob's heirs brought a civil suit against Steve.What would be the result,if the court accepts that Steve obtained the property illegally? Explain.

Accepted Answer

Very likely,a court would impose a const

Question 18

Anna wants to create a will indicating that her favorite grandchild,Jesse,will inherit her house.Anna takes an ordinary sheet of paper and,in her own handwriting,states that it is her intent to leave her house to Jesse when she dies.She dates and signs the will,but there are no witnesses to it.Anna then tells her entire family about the will.Anna lives in a state where holographic wills are recognized,but nuncupative wills are not.Will Anna's will be recognized and followed?

Accepted Answer

A) Yes,because Anna's will is entirely in her handwriting. 
B) No,because there were no witnesses present when Anna made her will. 
C) No,because a will must always be witnessed. 
D) Yes,because Anna's will has already been disclosed. 
A) Yes,because Anna's will is entirely in her handwriting. 
B) No,because there were no witnesses present when Anna made her will. 
C) No,because a will must always be witnessed. 
D) Yes,because Anna's will has already been disclosed.

Question 19

Lineal descendants-the children and grandchildren of a person-are known as:

Accepted Answer

A) devises. 
B) issue. 
C) residuary. 
D) obligees. 
A) devises. 
B) issue. 
C) residuary. 
D) obligees.

Question 20

An interested party in a will can be a witness to the will.

Accepted Answer

A) True 
 B)False

Exam 26: Estates and Trusts

A personal representative of an estate would breach his/her fiduciary duty if the personal representative:

John died without leaving a will.He left a wife and two children.He lived in Boise,Idaho,and he owned a ski condo in Aspen,Colorado.How will John's ski condo be distributed upon his death?

The residuary is the remaining property of a person's estate after bequests and devises have been made.

Which of the following is most likely to breach one of the trustee's fiduciary duties?

A ________ is oral in nature.

Which of the following statements about testamentary capacity to make a valid will is false?

A testator can revoke a will before his death.

Sarah is 75 years old.She has a serious illness,but she does not want to be kept alive by extraordinary medical technology.Specifically,she does not want to be kept alive by a respirator.Which of the following should Sarah use to make sure that her wishes are followed?

A bequest is a gift of personal property or money provided in a will.

A bequest is also called a(n):

If an ambiguity or conflict arises when people read and/or interpret a will,courts will:

Property held in joint tenancy or tenancy by the entirety is not controlled by a will.

If the deceased had no surviving relatives,the property escheats to ________.

A person can have multiple domiciles at a time.

Which of the following is the source of law for regulating the distribution of property upon death?

Lineal descendants-the children and grandchildren of a person-are known as:

An interested party in a will can be a witness to the will.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

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