Study Materials for Quiz D - Law 13 - law13-quizc

 

 

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  Law 13 - Wills and Trusts - Winter 2006 - Prof. Elise Lampert - Section # 0137

Quiz

 

Instructions: read the following materials to prepare for this quiz - click here

 

Quiz #A and Quiz #B are taken from (formerly Chp. 53 - 7th edition - West Bus Law)

 

Quiz #C, D, and E are taken from Chp. 51 - 9th edition - West Bus. Law

 

  1.

 

    Erin holds legal title to Fred's property under circumstances that, although nothing is express, indicate this is apparently only for Fred's benefit. This is

 

    (a) a charitable trust.

 

    (b) an inter vivos trust.

 

    (c) a resulting trust.

 

    (d) a testamentary trust.

 

  2.

 

    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

 

    (a) a charitable trust.

 

    (b) a constructive trust.

 

    (c) a spendthrift trust.

 

    (d) a Totten trust.

 

  3.

 

    Ben dies intestate, with no surviving spouse or child. Ben's survivors include his granddaughter Cathy, his nephew Doug, and his cousin Earl. His estate passes to

 

    (a) Cathy.

 

    (b) Doug.

 

    (c) Earl.

 

    (d) the state.

 

  4.

 

    Nick's assets are insufficient to pay all of the bequests provided for in his will. In this situation,

 

    (a) an abatement occurs, by which the legatees received reduced benefits.

 

    (b) each beneficiary, in the order in which he or she is named in the will, is paid in full until the assets are depleted, and the others receive nothing.

 

    (c) the assets are sold and the proceeds distributed per capita to the beneficiaries.

 

    (d) the assets of the estate are distributed under intestacy laws.

 

  5.

 

    In her will, Jill makes a gift of stock to Kent. At the time of Jill's death, she owes $10,000 to Local Mortgage Company. The residuum of her estate consists of assets that

 

    (a) exist before taxes, expenses, and the debt to Local Mortgage are paid

 

    (b) pay estate taxes, expenses, and debts.

 

    (c) remain after the debt to Local Mortgage is paid and the gift to Kent is made.

 

    (d) remain after taxes, expenses, and the debt to Local Mortgage is paid, but before the gift is made to Kent

 

  6.

 

    In his will, Rob makes a gift of $10,000 to Sam. This is

 

    (a) a general bequest.

 

    (b) a general devise.

 

    (c) a specific bequest.

 

    (d) a specific devise.

 

  7.

 

    Max creates a trust to prevent his son, Nick, the beneficiary, from assigning his rights to the trust's principal or future payments of trust income. This is

 

    (a) a charitable trust.

 

    (b) a constructive trust.

 

    (c) a spendthrift trust.

 

    (d) a Totten trust.

 

  8.

 

    Rita executes a will in 2000 naming her nephew Steve as sole beneficiary. In 2003, Rita executes another will, naming her niece Tammy as sole beneficiary, but does not state in the 2003 will that she is revoking the 2000 will. On Rita's death

 

    (a) Steve will be the sole heir.

 

    (b) Tammy will be the sole heir.

 

    (c) Steve and Tammy will share the estate in equal shares.

 

    (d) none of the above.

 

  9.

 

    Donna dies intestate. Intestacy laws, which determine how Donna's estate will be distributed, are also known as

 

    (a) estate administration laws.

 

    (b) probate laws.

 

    (c) nuncupative statutes.

 

    (d) statutes of descent and distribution.

 

  10.

 

    Adam has two children, Bob (the eldest) and Carol, both of whom predecease Adam. Bob is survived by a daughter, Dina, and Carol by two sons, Ed and Fred. On Adam's death, if the estate is distributed per stirpes

 

    (a) Dina will receive the entire estate.

 

    (b) Dina will receive one-half of the estate, and Ed and Fred will each receive one-fourth.

 

    (c) each grandchild will receive one-third of the estate.

 

    (d) the grandchildren will not receive anything.

 

  11.

 

    Patty makes a gift of real estate in her will to Quinn. This gift is

 

    (a) a bequest.

 

    (b) a devise.

 

    (c) a legacy.

 

    (d) an abatement.

 

  12.

 

    Jay dies intestate. Under intestacy laws, the debts of his estate are paid by

 

    (a) Jay's heirs after the assets of the estate have been distributed.

 

    (b) the administrator, who is later reimbursed by Jay's heirs.

 

    (c) the estate, before any assets are distributed to Jay's heirs.

 

    (d) the estate, after the assets are distributed to Jay's heirs.

 

  13.

 

    Don executes a will leaving half of his farm to his spouse Edy and the rest to his sons, Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Edy divorce, but Don dies before changing his will. Under the Uniform Probate Code

 

    (a) Edy receives half of the farm, and Frank and Greg share the rest.

 

    (b) Edy receives half of the farm, and Frank, Greg, and Hal share the rest.

 

    (c) Frank and Greg receive the entire estate in equal shares.

 

    (d) the state inherits the entire estate.

 

  14.

 

    The owners of Designer Software, Inc., want to execute wills. Eve is fifteen years old, Fred is seventeen, and Gail is nineteen. In most states, those with the capacity to execute a will are

 

    (a) all of the owners.

 

    (b) Fred and Gail only.

 

    (c) Gail only.

 

    (d) none of the owners.

 

  15.

 

    Owen dies intestate, survived by his niece Patty and his uncle Quinn. Patty and Quinn are Owen's

 

    (a) collateral heirs.

 

    (b) inter vivos heirs.

 

    (c) lineal descendants.

 

    (d) none of the above.

 

  16.

 

    Adam dies without a will. A court appoints Barb to handle the probate of Adam's estate. The administrator is

 

    (a) Adam.

 

    (b) Barb.

 

    (c) the court.

 

    (d) none of the above.

 

  17.

 

    Ross makes out a will in which Steve is appointed to administer the will. After Ross dies, Steve cannot administer the will, and a court appoints Terry to handle the probate of Ross's estate. The executor is

 

    (a) Ross.

 

    (b) Steve.

 

    (c) Terry.

 

    (d) the court.

 

  18.

 

    Charles creates a trust by his will to come into existence on his death. This is

 

    (a) a charitable trust.

 

    (b) an inter vivos trust.

 

    (c) a resulting trust.

 

    (d) a testamentary trust.

 

  19.

 

    On her deathbed, Jenny tells her relatives that on her death, Ken is to have all of her personal possessions. Jenny has made

 

    (a) a formal will.

 

    (b) an inter vivos gift.

 

    (c) an intestate will.

 

    (d) a nuncupative will.

 

  20.

 

    Gina's assets are insufficient to pay in full all of the bequests provided for in her will, as well as the taxes, debts, and expenses of administering the estate. In this situation,

 

    (a) an abatement occurs, by which the legatees received reduced benefits.

 

    (b) each beneficiary, in the order in which he or she is named in the will, is paid in full until the assets are depleted, and the others receive nothing.

 

    (c) the assets are sold and the proceeds distributed per capita to the beneficiaries.

 

    (d) the assets of the estate are distributed under intestacy laws.

 

  21.

 

    Karen executes a separate written instrument to amend her prior will. This separate document is

 

    (a) a codicil.

 

    (b) a constructive will.

 

    (c) an inter vivos will.

 

    (d) a nuncupative will.

 

  22.

 

    Bruce executes a will, after which his daughter Clair is born. Bruce dies. If it appears that he would have provided in his will for Clair, his daughter inherits

 

    (a) the entire estate.

 

    (b) the portion of the estate she would receive under intestacy laws.

 

    (c) the portion of the estate the other beneficiaries agree to give her.

 

    (d) none of the estate.

 

  23.

 

    Bob executes a will, telling the witnesses that the document they are about to sign is his "last will and testament." After Bob's death, the will is admitted for probate. Carol, his lawyer, reads the will to his heirs. The publication of the will is

 

    (a) Bob's declaration to the witnesses.

 

    (b) Bob's execution of the will.

 

    (c) Carol's reading of the will to Bob's heirs.

 

    (d) the admission of the will for probate.

 

  24.

 

    Paul dies intestate. His survivors include his spouse Rhoda and his two children, Sue and Tony. Under intestacy laws, of Paul's estate, Rhoda will probably receive

 

    (a) one-fifth.

 

    (b) one-third.

 

    (c) one-half.

 

    (d) everything.

 

  25.

 

    In her will, Sara makes a gift of "my pearl necklace" to Tina. This is

 

    (a) a general bequest.

 

    (b) a general devise.

 

    (c) a specific bequest.

 

    (d) a specific devise.

 

  26.

 

    Ann's will gives her vacation cabin to her friend Belle. Belle dies before Ann. When Ann dies, the cabin does not pass to Belle's heirs but to Ann's daughter Connie. This is

 

    (a) a lapsed legacy.

 

    (b) a general bequest.

 

    (c) an abatement.

 

    (d) the residuary of the estate.

 

  27.

 

    Ellen dies intestate, survived by her grandson Floyd and her sister Grace. Floyd and Grace are Ellen's

 

    (a) collateral heirs.

 

    (b) inter vivos heirs.

 

    (c) lineal descendants.

 

    (d) none of the above.

 

  28.

 

    Tom executes a will in which he leaves everything to his spouse, Victoria, and in which he appoints Warren to administer his estate. This must be signed by

 

    (a) Tom only.

 

    (b) Tom and Victoria only.

 

    (c) Tom, Victoria, and Warren.

 

    (d) none of the above.

 

  29.

 

    In his will, Carl makes a gift of his collection of sports memorabilia to Don, a fellow collector. A lapsed legacy will occur if

 

    (a) Carl revokes the will.

 

    (b) Don dies before Carl or before the gift is made.

 

    (c) the collection consists of items procured by illegal means.

 

    (d) the will is invalidated for lack of testamentary capacity.

 

  30.

 

    Jerry, a twenty-year-old, wants to execute a will before he takes a mountain-climbing trip in the Sierra Nevadas. In most states, the legal age for executing a will is

 

    (a) sixteen years of age.

 

    (b) eighteen years of age.

 

    (c) twenty-one years of age.

 

    (d) twenty-five years of age.

 

  31.

 

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

 

    (a) a lapsed legacy.

 

    (b) a general bequest.

 

    (c) an abatement.

 

    (d) the residuum.

 

  32.

 

    Nora serves as a witness to Pete's will. Before attesting to the will, Nora must

 

    (a) only be told of the contents of the will by Pete.

 

    (b) only read the will.

 

    (c) be told of the contents of the will by Pete and read the will.

 

    (d) none of the above.

 

  33.

 

    Kay has two children, Larry (the eldest) and Mona, both of whom predecease Kay. Larry is survived by a son, Nick, and Mona by two daughters, Opal and Pearl. On Kay's death, if the estate is distributed per capita

 

    (a) Nick will receive the entire estate.

 

    (b) Nick will receive one-half of the estate, and Opal and Pearl will each receive one-fourth.

 

    (c) each grandchild will receive one-third of the estate.

 

    (d) the grandchildren will not receive anything.

 

  34.

 

    Elaine's will is admitted to probate, which is the process by which

 

    (a) the decedent's estate is administered only.

 

    (b) the will's validity is established only.

 

    (c) the decedent's estate is administered and the will's validity is established.

 

    (d) none of the above.

 

  35.

 

    Frank wants to put some money in trust for his son Greg, but he does not want to lose full control over the funds in case he may need them in the future. The trust best suited to Frank's needs is

 

    (a) a charitable trust.

 

    (b) a constructive trust.

 

    (c) a spendthrift trust.

 

    (d) a Totten trust.

 

- End of test. -