Question 1

Which of the following is one of the requirements for forming an express trust?

Accepted Answer

A)  The settlor need not necessarily attain the age required by state law for the creation of valid wills and contracts. 
B)  The trust cannot be created for a reason that is contrary to public policy. 
C)  The settlor must name a trustee for the trust and a substitute trustee in the event the named trustee refuses to act. 
D)  The beneficiaries cannot be members of a specific class, such as "my children." 
A)  The settlor need not necessarily attain the age required by state law for the creation of valid wills and contracts. 
B)  The trust cannot be created for a reason that is contrary to public policy. 
C)  The settlor must name a trustee for the trust and a substitute trustee in the event the named trustee refuses to act. 
D)  The beneficiaries cannot be members of a specific class, such as "my children."

Question 2

Alma was suffering from a terminal disease. Because she distrusted attorneys, she wrote a statement in her own handwriting, labeling it "My Last Will and Testament." The statement contained a provision specifying that Alma wanted all of her property to go to her church upon her death. She signed the statement and stored it in her jewelry box, and she told her friend Willa of its location. When Alma died, Willa produced Alma's statement. Willa is now attempting to have the statement admitted to probate as Alma's will. Alma's grown children claim that Alma died intestate and that they should inherit her property. In this scenario, _____.

Accepted Answer

A)  Alma's will is void and Willa will inherit her property 
B)  the church will inherit Alma's property if Alma's state recognizes holographic wills 
C)  Alma's children and the church will split Alma's property because Alma's will is nuncupative 
D)  the will may be declared void and the property will go to the state 
A)  Alma's will is void and Willa will inherit her property 
B)  the church will inherit Alma's property if Alma's state recognizes holographic wills 
C)  Alma's children and the church will split Alma's property because Alma's will is nuncupative 
D)  the will may be declared void and the property will go to the state

Question 3

What makes holographic wills suspect?

Accepted Answer

A)  They are not properly witnessed. 
B)  They are not written and signed in the testator's handwriting. 
C)  They are typed by the testator and signed by him or her. 
D)  They are oral wills. 
A)  They are not properly witnessed. 
B)  They are not written and signed in the testator's handwriting. 
C)  They are typed by the testator and signed by him or her. 
D)  They are oral wills.

Question 4

Which of the following is a formality usually required by state law for the creation of a valid will?

Accepted Answer

A)  The will must be witnessed and signed by at least two persons who stand to inherit under the will. 
B)  Notice of the making of the will must be published in the newspaper. 
C)  The will must be signed by the testator or by someone else at the testator's direction. 
D)  The witnesses should declare, after the signing, that the instrument is the testator's will. 
A)  The will must be witnessed and signed by at least two persons who stand to inherit under the will. 
B)  Notice of the making of the will must be published in the newspaper. 
C)  The will must be signed by the testator or by someone else at the testator's direction. 
D)  The witnesses should declare, after the signing, that the instrument is the testator's will.

Question 5

If a person dies without having made a will, or if he makes a will that is declared invalid, he is said to have died testate.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of a joint will?

Accepted Answer

A)  Whether a joint will is revocable depends only on the language of the will. 
B)  The mere fact that a joint will has been executed creates the presumption of a contract not to revoke the will. 
C)  Underlying a joint will is an agreement on a common plan. 
D)  A testator who has made a joint will cannot change the will later under any circumstances. 
A)  Whether a joint will is revocable depends only on the language of the will. 
B)  The mere fact that a joint will has been executed creates the presumption of a contract not to revoke the will. 
C)  Underlying a joint will is an agreement on a common plan. 
D)  A testator who has made a joint will cannot change the will later under any circumstances.

Question 7

A trust that is established and effective during the settlor's lifetime is known as an inter vivos trust.

Accepted Answer

A) True 
 B)False

Question 8

The right to control the disposition of property at death has not always existed.

Accepted Answer

A) True 
 B)False

Question 9

In the states that recognize holographic wills, such wills will be valid if:

Accepted Answer

A)  they do not evidence testamentary intent. 
B)  they are in the handwriting of the testator. 
C)  the material portions in the will are typed. 
D)  they are typed and evidence testamentary intent. 
A)  they do not evidence testamentary intent. 
B)  they are in the handwriting of the testator. 
C)  the material portions in the will are typed. 
D)  they are typed and evidence testamentary intent.

Question 10

Spendthrift clauses:

Accepted Answer

A)  restrict the voluntary or involuntary transfer of a beneficiary's interest in a trust. 
B)  prevent creditors who have furnished necessaries from compelling payment. 
C)  enable a person to put their own property beyond the claims of their own creditors. 
D)  prevent divorced spouses from claiming alimony. 
A)  restrict the voluntary or involuntary transfer of a beneficiary's interest in a trust. 
B)  prevent creditors who have furnished necessaries from compelling payment. 
C)  enable a person to put their own property beyond the claims of their own creditors. 
D)  prevent divorced spouses from claiming alimony.

Exam 36: Estates and Trusts

Which of the following is one of the requirements for forming an express trust?

What makes holographic wills suspect?

Which of the following is a formality usually required by state law for the creation of a valid will?

If a person dies without having made a will, or if he makes a will that is declared invalid, he is said to have died testate.

Which of the following is true of a joint will?

A trust that is established and effective during the settlor's lifetime is known as an inter vivos trust.

The right to control the disposition of property at death has not always existed.

In the states that recognize holographic wills, such wills will be valid if:

Spendthrift clauses:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

Filters