Question 1

Property of a person who dies without a will is distributed according to intestacy laws.

Accepted Answer

When a person dies without a will, their property is distributed according to the intestacy laws of the state in which they resided.

Question 2

The percentage of a decedent's estate that a spouse can claim is called a forced share.

Accepted Answer

This is true. A forced share is the portion of an estate that a surviving spouse is entitled to claim, regardless of what was left to them in the decedent's will. The exact percentage varies by state law.

Question 3

Experts estimate that more than _______ percent of the population will not be capable of making their own medical decisions at the end of their lives.

Accepted Answer

Experts estimate that more than 75 percent of the population will not be capable of making their own medical decisions at the end of their lives.

Question 4

Per capita means each heir gets an equal share of an estate.

Accepted Answer

Per capita means "by head" or "for each person," and it refers to the distribution of an estate equally among all heirs.

Question 5

The Uniform Probate Code has been adopted in all states.

Accepted Answer

The Uniform Probate Code has not been adopted in all states. Only 18 states have adopted it as of 2021.

Question 6

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Accepted Answer

Estate planning typically aims to distribute property according to the owner's wishes and reduce or eliminate estate taxes, making the statement true.

Question 7

A later will revokes a prior will only if that revocation is clearly stated.

Accepted Answer

A later will can revoke a prior will if it is inconsistent with the prior will or if it expressly states that it revokes the prior will, but a clear statement of revocation is not the only way a prior will can be revoked.

Question 8

In purchasing life insurance,Kelsey concealed the fact that she has a muscular disease.The insurance company can void the policy if the muscular disease is found to be a material fact.

Accepted Answer

Concealing a material fact, such as a pre-existing medical condition, can lead to the insurance company voiding the policy if discovered.

Question 9

Victor purchased $1 million of insurance on his home even though the house was only worth $500,000.Victor's house was destroyed by lightning.Under the insurance policy,Victor will be able to recover $1 million.

Accepted Answer

Insurance policies typically pay out based on the actual cash value or the replacement cost of the property at the time of loss, not the amount of insurance purchased, to prevent profiting from a claim.

Question 10

The only function of a will is to dispose of a person's property upon death.

Accepted Answer

A will can also appoint guardians for minor children, specify funeral arrangements, and name executors to manage the estate's distribution, in addition to disposing of a person's property upon death.

Question 11

Which is true of an inter vivos trust?

Accepted Answer

An inter vivos trust is established during the grantor's lifetime. This distinguishes it from a testamentary trust, which is created by a will. The grantor can serve as trustee of an inter vivos trust, and the trust can be either revocable or irrevocable.

Question 12

April purchased a life insurance policy on herself.On her death,the proceeds of the insurance were to be paid to her minor child,Ryan.Ryan is the beneficiary.

Accepted Answer

Ryan is named as the beneficiary of the life insurance policy, which means that upon April's death, the proceeds will be paid to Ryan.

Question 13

Myron had two children,Cheryl and Pete,who predeceased him.Cheryl had three children and Pete had one child.Myron had a will.Which of the following is true?

Accepted Answer

When inheriting per stirpes, the estate is divided into branches of the family. Since Myron had two children, the estate is divided into two parts: one for Cheryl's line and one for Pete's line. Pete's child, being the only descendant in Pete's line, would receive the entire half allocated to Pete's line.

Question 14

In estate planning,a person's direct descendants are called

Accepted Answer

Direct descendants are commonly referred to as "issue" in estate planning terminology. Testators are individuals who create a will, heirs are individuals entitled to receive the assets of a deceased person, and grantors are individuals who transfer ownership of property to another person or entity.

Question 15

Jacob has been quite ill.When three of his neighbors come to visit one day,he tells them that he is dying and that he wants them to witness his oral will.In some states,he can validly dispose of his personal property by his witnessed,oral statements.

Accepted Answer

In some states, an individual can create a valid oral will if it is witnessed by at least two witnesses. However, it is important to note that not all states allow for oral wills and it is always recommended to create a written will to ensure that one's wishes are properly documented and executed.

Question 16

Jose and Juanita are first cousins.Jose lives in San Francisco,California;Juanita lives in Toronto,Canada.The two have met only once in life and may never meet again.Nonetheless,because they are blood relatives,Juanita has an insurable interest in Jose's life.

Accepted Answer

Insurable interest typically requires a financial or emotional dependency, which is not established merely by being first cousins who have met only once.

Question 17

Reva prepares and signs a document that she intends to be her will.If she has not followed the legal technicalities of her state regarding executing a will,the court may not enforce the will.

Accepted Answer

This statement is true. In order for a will to be legally enforceable, it must follow the legal technicalities of the state in which it was created, signed, and witnessed. If these requirements are not met, the court may not recognize the document as a valid will.

Question 18

Parents may not disinherit their minor children without good reason.

Accepted Answer

The answer of Parents may not disinherit their minor children...

Question 19

Legal requirements for a will depend on state law,but generally include all but which of the following?

Accepted Answer

While some states require at least two witnesses to sign a will, there is no universal requirement for at least three witnesses. Therefore, choice B is not generally required for a will.

Question 20

An executor who is related to the testator is not entitled to compensation.

Accepted Answer

An executor who is related to the testator can still receive compensation, but it may be subject to review and approval by the court if it appears excessive or unreasonable.

Quiz 44: Planning for the Future: Wills, Trusts and Insurance