Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Theresa and Ella,mother and daughter,own property as joint tenants with the right of survivorship.Ella [can | cannot] write a valid will leaving her part of this property to Bob Shockey.

Accepted Answer

As joint tenants with the right of survivorship, Theresa and Ella have equal ownership of the property. This means that if one of them dies, the other will automatically receive full ownership of the property. Therefore, Ella cannot leave her part of the property to anyone else in her will because her share will pass directly to Theresa upon her death.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Funeral instructions should be included in a [letter of instructions | your will].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A letter of last instruction [is | is not] a legally enforceable document.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You would create a [living | testamentary] trust to be used after you die.

Accepted Answer

A living trust is used during a person's lifetime to manage assets, while a testamentary trust is created through a will and only goes into effect after the person's death. Therefore, since the statement specifies that the trust is to be used after death, a testamentary trust would be the appropriate type to create.

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You need to make major revisions in your will.You should write a [codicil | new will].

Accepted Answer

A codicil is a separate document that amends or adds to an existing will, while a new will completely replaces the old one. Since the statement says "major revisions," it would be best to write a new will to ensure that all changes are accurately reflected and there is no confusion or ambiguity in the final document.

Question 7

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Mike and Tristan,father and son,own property as tenants in common.Tristan [can | cannot] write a valid will leaving his part of this property to Ella Fitzgerald.

Accepted Answer

As a tenant in common, Tristan has the right to leave his share of the property to anyone he chooses in his will, including Ella Fitzgerald.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Walter left nothing to his wife in his will.His wife [is out of luck | can get the amount that the state intestacy laws would have given her].

Accepted Answer

If someone's will doesn't give anything to their spouse, the spouse can typically receive a portion of the estate through state intestacy laws. Therefore, Walter's wife can get the amount that the state intestacy laws would have given her.

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Assets held in a trust created during a person's lifetime [will | will not] go through the probate process after the death of the creator.

Accepted Answer

Assets held in a trust created during a person's lifetime will not go through the probate process after the death of the creator because they are managed according to the terms of the trust, bypassing probate.

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-A person can give [a limited | any] number of tax free gifts per year.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You need to make a minor revision in your will.You should write a [codicil | new will].

Accepted Answer

A codicil is a minor addition or change to an existing will, so it is the appropriate choice in this scenario. Writing a completely new will would be necessary only if major changes were required.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-An inheritance tax is paid by the [estate | recipient] of the inheritance.

Accepted Answer

An inheritance tax is paid by the recipient of the inheritance, as it is a tax on the beneficiaries who receive the assets.

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Funds from the [Minor's Section 2503(c)| Crummy] trust must be distributed by the time the beneficiary turns 21.

Accepted Answer

A Minor's Section 2503(c) trust requires that the funds be distributed to the beneficiary by the age of 21.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The person setting up a trust is called the [grantor | trustee].

Accepted Answer

The person setting up a trust is called the grantor, not the trustee. The trustee is the person who manages the trust assets for the beneficiaries.

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-When Jessica gets a divorce,her will leaving everything to her former husband usually will be [nullified | still valid] in most states.

Accepted Answer

When someone gets a divorce, their will usually becomes invalid because their former spouse is no longer considered a legal heir. Therefore, the will leaving everything to Jessica's former husband would be nullified in most states.

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Your will [may | may not] contain a testamentary trust.

Accepted Answer

The phrase "may or may not" indicates that the sentence is referring to the possibility of a testamentary trust being included in the person's will. As such, both options could be correct, but "may" is the more accurate phrase for indicating possibility.

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You would create a [living | testamentary] trust to be used during your lifetime.

Accepted Answer

A living trust is used during the creator's lifetime, while a testamentary trust is created through a will and only takes effect after the creator's death.

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If you want to create a living trust that provides tax advantages,you will need to establish [a revocable | an irrevocable] trust.

Accepted Answer

An irrevocable trust provides tax advantages, while a revocable trust does not.

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-An appropriate trust to set up with a disabled child being the beneficiary would be the [Special Needs | Minor's Section 2503(c)] trust.

Accepted Answer

The Special Needs trust is designed to provide for the supplemental needs of a disabled person without disqualifying them from government benefits. A Minor's Section 2503(c) trust is designed to allow a minor to receive gifts or transfers of money without paying gift tax, but it does not provide the same protections and benefits as a Special Needs trust for a disabled beneficiary.

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Legal title to the property in a trust is held by the [grantor | trustee].

Accepted Answer

The trustee is the legal owner of the property in a trust, while the grantor transfers ownership of the property into the trust.

Quiz 15: Preserving Your Estate

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Theresa and Ella,mother and daughter,own property as joint tenants with the right of survivorship.Ella [can | cannot] write a valid will leaving her part of this property to Bob Shockey.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Funeral instructions should be included in a [letter of instructions | your will].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A letter of last instruction [is | is not] a legally enforceable document.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You would create a [living | testamentary] trust to be used after you die.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You need to make major revisions in your will.You should write a [codicil | new will].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Mike and Tristan,father and son,own property as tenants in common.Tristan [can | cannot] write a valid will leaving his part of this property to Ella Fitzgerald.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Walter left nothing to his wife in his will.His wife [is out of luck | can get the amount that the state intestacy laws would have given her].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Assets held in a trust created during a person's lifetime [will | will not] go through the probate process after the death of the creator.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -A person can give [a limited | any] number of tax free gifts per year.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You need to make a minor revision in your will.You should write a [codicil | new will].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An inheritance tax is paid by the [estate | recipient] of the inheritance.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Funds from the [Minor's Section 2503(c) | Crummy] trust must be distributed by the time the beneficiary turns 21.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The person setting up a trust is called the [grantor | trustee].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When Jessica gets a divorce,her will leaving everything to her former husband usually will be [nullified | still valid] in most states.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Your will [may | may not] contain a testamentary trust.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You would create a [living | testamentary] trust to be used during your lifetime.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you want to create a living trust that provides tax advantages,you will need to establish [a revocable | an irrevocable] trust.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An appropriate trust to set up with a disabled child being the beneficiary would be the [Special Needs | Minor's Section 2503(c) ] trust.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Legal title to the property in a trust is held by the [grantor | trustee].