Question 1

A durable power of attorney terminates when the principal becomes incapacitated.

Accepted Answer

A) True 
 B)False

Question 2

A will confers no present interest in the testator's property.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following arises when there has been an incomplete disposition of trust property and the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment?

Accepted Answer

A) Express trust 
B) Spendthrift trust 
C) Totten trust 
D) Resulting trust 
A) Express trust 
B) Spendthrift trust 
C) Totten trust 
D) Resulting trust

Question 4

Krieg's will created a trust to take effect upon his death.The will named Krieg's spouse as both the trustee and personal representative (executor)of the estate.The will provided that all of Krieg's securities were to be transferred to the trust and named Krieg's child as the beneficiary of the trust.Which of the following is true under the circumstances?

Accepted Answer

A) Krieg has created a testamentary trust. 
B) Krieg's spouse may not serve as both the trustee and personal representative. 
C) Krieg has created a spendthrift trust. 
D) The trust is invalid because securities cannot be transferred to a trust. 
A) Krieg has created a testamentary trust. 
B) Krieg's spouse may not serve as both the trustee and personal representative. 
C) Krieg has created a spendthrift trust. 
D) The trust is invalid because securities cannot be transferred to a trust.

Question 5

A codicil is an amendment to a will.

Accepted Answer

A) True 
 B)False

Question 6

A Totten trust is created when a person:

Accepted Answer

A) deposits money in a bank for the benefit of another. 
B) directs in his will that a trust be created upon that person's death. 
C) executes a trust using a holographic will. 
D) opens a trust only for the benefit of the indigent. 
A) deposits money in a bank for the benefit of another. 
B) directs in his will that a trust be created upon that person's death. 
C) executes a trust using a holographic will. 
D) opens a trust only for the benefit of the indigent.

Question 7

A third party who has a claim against a trust must file his claim against the:

Accepted Answer

A) settlor. 
B) trustee. 
C) executor. 
D) beneficiaries. 
A) settlor. 
B) trustee. 
C) executor. 
D) beneficiaries.

Question 8

A particular trust has income-producing real property as its sole asset.Which of the following trust proceeds or expenditures should be allocated to the principal?

Accepted Answer

A) Annual payments on a fire insurance policy to protect the trust property. 
B) The cost of a long-term permanent improvement to the trust property. 
C) Rental income from the trust property. 
D) Real estate taxes paid on the trust property. 
A) Annual payments on a fire insurance policy to protect the trust property. 
B) The cost of a long-term permanent improvement to the trust property. 
C) Rental income from the trust property. 
D) Real estate taxes paid on the trust property.

Question 9

A document that gives person A the right to act for person B,in the event that person A becomes incapacitated is known as a:

Accepted Answer

A) durable power of attorney. 
B) living trust. 
C) right of succession. 
D) codicil. 
A) durable power of attorney. 
B) living trust. 
C) right of succession. 
D) codicil.

Question 10

Which of the following statements about the English feudal system and disposition of property is false?

Accepted Answer

A) The lords and knights essentially had a life estate. 
B) The lords and knights had only the right to use the land. 
C) A landowner's rights in land terminated upon his death. 
D) The king owned his castle and each lord and knight owned their own land. 
A) The lords and knights essentially had a life estate. 
B) The lords and knights had only the right to use the land. 
C) A landowner's rights in land terminated upon his death. 
D) The king owned his castle and each lord and knight owned their own land.

Exam 26: Estates and Trusts

A durable power of attorney terminates when the principal becomes incapacitated.

A will confers no present interest in the testator's property.

Which of the following arises when there has been an incomplete disposition of trust property and the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment?

A codicil is an amendment to a will.

A Totten trust is created when a person:

A third party who has a claim against a trust must file his claim against the:

A particular trust has income-producing real property as its sole asset.Which of the following trust proceeds or expenditures should be allocated to the principal?

A document that gives person A the right to act for person B,in the event that person A becomes incapacitated is known as a:

Which of the following statements about the English feudal system and disposition of property is false?

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