Question 1

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

Accepted Answer

In the English feudal system,the king owned all land.The lords and knights had only the right to use land for their lifetime.A landholder's rights in land terminated upon his death,and no rights descended to his heirs.In 1215,the king granted the nobility the right to pass their interest in the land they held to their heirs.Later,that right was extended to all property owners.

Question 2

A(n)________ is a document executed with specific legal formalities by a testator that contains her instructions about the way her property will be disposed of at her death.

Accepted Answer

A will is a document executed with specific legal formalities by a testator (person making a will)that contains her instructions about the way her property will be disposed of at her death.

Question 3

A person making a will is called the ________.

Accepted Answer

A testator is a person making a will.

Question 4

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

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law implies or imposes a trust.A resulting trust arises when there has been an incomplete disposition of trust property.

Question 5

In her will,Beth devised her house to her friend,Janet.When Beth died,Janet took possession over the house and Beth's estate contained $300,000 of ungifted cash.A few days later,Janet learned the house Beth gifted to her was subject to a $120,000 mortgage.Which of the following statements is true?

Accepted Answer

A person who takes property by will takes it subject to all outstanding claims against the property.For example,if real property is subject to a mortgage or other lien,the beneficiary who takes the property gets it subject to the mortgage or lien.In addition,the rights of the testator's creditors are superior to the rights of beneficiaries under her will.Thus,if the testator was insolvent (her debts exceeded her assets),persons named as beneficiaries do not receive any property by virtue of the will.

Question 6

A(n)________ is a written document that directs others how future health care decisions should be made in the event that the individual becomes incapacitated.

Accepted Answer

An advance directive is a written document (such as a living will or durable power of attorney)that directs others how future health care decisions should be made in the event that the individual becomes incapacitated.

Question 7

A distinguishing feature between the making of an inter vivos gift and the creation of a trust is that:

Accepted Answer

A settlor can revoke or modify a trust if he reserved the power to do so at the time that he established the trust.In contrast,gifts are generally irrevocable.

Question 8

Which of the following is true of a spendthrift trust?

Accepted Answer

A spendthrift trust restricts the voluntary or involuntary transfer of a beneficiary's interest.

Question 9

Which of the following is the legal term for a person's permanent home?

Accepted Answer

A domicile is a person's permanent home.A person can have only one domicile at a time.Determinations of a person's domicile turn on facts that tend to show that person's intent to make a specific state her permanent home.

Question 10

Which of the following terms is used for an heir born after the execution of the testator's will?

Accepted Answer

Children of the testator who were born or adopted after the will was executed are called pretermitted children.

Question 11

Which of the following is an agent who is given express,written authorization by his or her principal to do a particular act or series of acts on behalf of the principal?

Accepted Answer

An attorney-in-fact is an agent who is given express,written authorization by his or her principal to do a particular act or series of acts on behalf of the principal.

Question 12

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law imposes a trust even though no express trust exists.This is known as a(n)________ trust.

Accepted Answer

Under exceptional circumstances in which the creation of a trust is necessary to effectuate a settlor's intent or avoid unjust enrichment,the law implies or imposes a trust even though no express trust exists.

Question 13

As part of creating an estate plan,an attorney will likely do all of the following,except:

Accepted Answer

An attorney who is creating an estate plan will take an inventory of the client's assets,learn the client's objectives,and draft the instruments necessary to carry out the plan.An attorney would not distribute property to beneficiaries as part of the estate planning process.

Question 14

Which of the following follows after the testator's signature and states the formalities that have been followed in the execution of the will?

Accepted Answer

As a general rule,an attestation clause,which states the formalities that have been followed in the execution of the will,is written following the testator's signature.

Question 15

Which of the following statements about revocation of wills is false?

Accepted Answer

A later will that does not expressly revoke an earlier will operates to revoke only those portions of the earlier will that are inconsistent with the later will.

Question 16

When a person procures the transfer of property by means of fraud or duress,he becomes a(n)________ and is under an obligation to return the property to its original owner.

Accepted Answer

A constructive trust is a trust created by operation of law to avoid fraud,injustice,or unjust enrichment.This type of trust imposes on the constructive trustee a duty to convey property he holds to another person on the ground that the constructive trustee would be unjustly enriched if he were allowed to retain it.

Question 17

A bequest is also called a(n):

Accepted Answer

A bequest (also called legacy)is a gift of personal property or money.

Question 18

Which of the following statements about testamentary capacity to make a valid will is false?

Accepted Answer

To be of "sound mind," a person need only be sufficiently rational to be capable of understanding the nature and character of her property,of realizing that she is making a will,and of knowing the persons who would normally be the beneficiaries of her affection.

Question 19

Because joint tenancy and life insurance are ways of directing the disposition of property,they are sometimes referred to as ________.

Accepted Answer

Property held in joint tenancy or tenancy by the entirety is not controlled by a will because the property passes automatically to the surviving cotenant by right of survivorship.In addition,life insurance proceeds are controlled by the insured's designation of beneficiaries,not by any provision of a will.(Because joint tenancy and life insurance are ways of directing the disposition of property,they are sometimes referred to as "will substitutes.")

Question 20

Which of the following statements about The Patient Self-Determination Act (Act)is false?

Accepted Answer

Under the Act,health care providers are required to ensure compliance with the requirements of state law concerning advance directives and to educate their staff and the community on issues concerning advance directives.

Quiz 26: Estates and Trusts