Exam 50: Wills and Trusts

Lost in a canyon near Gila, Arizona, Hedy writes her will in crayon, on a paper bag, while Ivan states orally how he wants his estate distributed. Most states do not permit

Travis's will states, "I give to my brother Uri my gold pocket watch." This is

Aaron owns a certificate of deposit with Beth, his sister, and an apart?ment building with Carl, his brother, in both cases as a joint tenant. Aaron, a partner with Debra in Aaron & Debra Accountants, obtains a life insurance policy with Debra as the designated beneficiary. Aaron 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. Aaron, on his own 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 Aaron's estate and be distributed under the will? If not, how will these items be distributed and to whom?

A "living will" is a will drafted and executed during a decedent's life.

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that

A trust created by a will to come into existence on the settlor's death is an inter vivos trust.

A lapsed legacy will occur if the testator predeceases the legatee.

Lolly employs a variety of will substitutes to transfer her assets, which consist principally of cash and investments in mutual funds, outside the probate process. In this situation, the most important consideration is to

According to Lou's will, specific gifts are made, and taxes and other es?tate expenses and debts are paid. The assets of Lou's estate that remain are

In a spendthrift trust, a beneficiary can transfer his or her right to the trust's principal if the transfer is "thrifty."

The word "Mom" can qualify as a signature on a will.

Leo is asked to serve as a witness to Mona's will. To qualify, Leo must be

Benny dies without a will, with no surviving spouse or child. Benny's survivors in?clude his granddaughter Callie, his nephew Doug, and his cousin Earl. In most states, his estate would pass to

If no children or grandchildren survive a decedent who dies without a will, a surviving spouse succeeds to the entire estate.

One summer afternoon, Eve, Faruk, and Galen decide to each draft and sign a "Last Will and Testament." Eve is fif?teen years old, Faruk is seventeen, and Galen is nineteen. In most states, those with the capacity to execute a will would be

The assets in Dong'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

Clayton dies without a will. The distribution of Clayton's property, including his farm near Lincoln, Nebraska, is prescribed by

Once executed, a will cannot be revoked.

Max is married to Nina. Max executes a will, leaving certain property to Nina and other property to Opal, who is unrelated to Max and Nina. On Max's death

Char's daughter Delsey dies before Char, leaving Delsey's son Egor. On Char's death, it is learned that Char's will gives "to my daughter Delsey my ranch in Mesquite County, Texas." Most likely, the gift of the ranch