Question 1

What was the document that Jasmine wanted,giving Erica the power to handle her affairs should she become unable to do so herself?

Accepted Answer

A)A durable power of attorney is a written document executed when the principal
is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
B)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
C)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
D)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
E)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.

Question 2

Regarding a trust,which of the following is a false statement?

Accepted Answer

A)Often,income is paid to an income beneficiary,who may or may not have access
to the trust corpus.
B)Often,income is paid to an income beneficiary,who may or may not have access to the trust corpus.
C)Often,income is paid to an income beneficiary,who may or may not have access to the trust corpus.
D)Often,income is paid to an income beneficiary,who may or may not have access to the trust corpus.
E)Often,income is paid to an income beneficiary,who may or may not have access to the trust corpus.

Question 3

An)________ document outlines the principal-agent relationship that allows an agent to make medical decisions for a principal who is unable to participate in medical decisions.

Accepted Answer

A)Some states have passed laws that allow an agent to make medical decisions for
a principal who is unable to participate in medical decisions.The document that outlines this principal-agent relationship is called a health care proxy.
B)Some states have passed laws that allow an agent to make medical decisions for a principal who is unable to participate in medical decisions.The document that outlines this principal-agent relationship is called a health care proxy.
C)Some states have passed laws that allow an agent to make medical decisions for a principal who is unable to participate in medical decisions.The document that outlines this principal-agent relationship is called a health care proxy.
D)Some states have passed laws that allow an agent to make medical decisions for a principal who is unable to participate in medical decisions.The document that outlines this principal-agent relationship is called a health care proxy.
E)Some states have passed laws that allow an agent to make medical decisions for a principal who is unable to participate in medical decisions.The document that outlines this principal-agent relationship is called a health care proxy.

Question 4

An implied trust is also called a[n] ________ trust.

Accepted Answer

A)Implied trusts are also called involuntary trusts because courts,rather than
settlors,create them.
B)Implied trusts are also called involuntary trusts because courts,rather than settlors,create them.
C)Implied trusts are also called involuntary trusts because courts,rather than settlors,create them.
D)Implied trusts are also called involuntary trusts because courts,rather than settlors,create them.
E)Implied trusts are also called involuntary trusts because courts,rather than settlors,create them.

Question 5

[Bruiser] Samuel,a ninety-year-old wild bronco rider in the rodeo,had a will leaving all his possessions to a girlfriend,Winona,age twenty-two.During a rodeo,Samuel was placed on a particularly wild bronco named "Bruiser." During the ride,Crabby the clown yelled out to Samuel that Winona had suggested that particular horse.Samuel was annoyed about that because he was having trouble controlling Bruiser.Nevertheless,Samuel prevailed and collected the prize.Samuel was so excited that he had a heart attack.Just before he died,he yelled out,"Winona,you had me put on that crazy horse,and I'm revoking my will.I'm dying,and I'm leaving everything to my other girlfriend,Keisha." A number of witnesses heard his statement;and Crabby,who had always liked Keisha more than Winona,promptly wrote down Samuel's statement.Winona knew nothing about Keisha and was very upset.She told Keisha that Keisha could have nothing because Samuel's written will was still in effect.She also told Keisha that Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything.Samuel's daughter,Laura,age 65,also entered the discussion stating that Winona had unfairly coerced Samuel into writing a will leaving her everything.
-Which of the following is a true statement regarding Laura's claim that Winona unfairly coerced Samuel into naming her as a beneficiary in the written will and that the written will is ineffective?

Accepted Answer

A)Undue influence occurs when the testator wrote the will under circumstances in which a person he trusted took advantage of his weak physical or emotional condition to persuade him to write the will in a particular way.
B)Undue influence occurs when the testator wrote the will under circumstances in which a person he trusted took advantage of his weak physical or emotional condition to persuade him to write the will in a particular way.
C)Undue influence occurs when the testator wrote the will under circumstances in which a person he trusted took advantage of his weak physical or emotional condition to persuade him to write the will in a particular way.
D)Undue influence occurs when the testator wrote the will under circumstances in which a person he trusted took advantage of his weak physical or emotional condition to persuade him to write the will in a particular way.
E)Undue influence occurs when the testator wrote the will under circumstances in which a person he trusted took advantage of his weak physical or emotional condition to persuade him to write the will in a particular way.

Question 6

An)________ is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.

Accepted Answer

A)A durable power of attorney is a written document executed when the principal
is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
B)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
C)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
D)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.
E)A durable power of attorney is a written document executed when the principal is in good mental health that allows an agent to make medical decisions for the principal at some later date when the principal can no longer make decisions.

Question 7

A[n] ________ trust is created by a court when an express trust fails and the court can imply a trust from certain behavior.

Accepted Answer

A)A resulting trust occurs when an express trust fails and the court can imply a
trust from certain behavior.
B)A resulting trust occurs when an express trust fails and the court can imply a trust from certain behavior.
C)A resulting trust occurs when an express trust fails and the court can imply a trust from certain behavior.
D)A resulting trust occurs when an express trust fails and the court can imply a trust from certain behavior.
E)A resulting trust occurs when an express trust fails and the court can imply a trust from certain behavior.

Question 8

[Family Trust] Jasmine had made lots of money in the stock market.She was getting older and was concerned about the integrity of her children and grandchildren who seemed unwilling to work.She decided that she would place the majority of her money in a trust and instruct that it be distributed only to family members who were gainfully employed or attending school on a full-time basis throughout the next twenty years.The remainder of the trust at that time was to be given to a local animal shelter.She also told her lawyer,Bao,that although she was in good health and mind at the present time,she would like a document drawn up giving her daughter Erica the power to make decisions for her,including financial decisions,should her health deteriorate to the point that she could not handle her own affairs.
-What is the appropriate term for a person or entity that receives a portion of the trust corpus when a trust is terminated?

Accepted Answer

A)When the trust is terminated,a designated person called a remainderman receives
the trust corpus.
B)When the trust is terminated,a designated person called a remainderman receives the trust corpus.
C)When the trust is terminated,a designated person called a remainderman receives the trust corpus.
D)When the trust is terminated,a designated person called a remainderman receives the trust corpus.
E)When the trust is terminated,a designated person called a remainderman receives the trust corpus.

Question 9

A ________ is a person who creates a trust.

Accepted Answer

A)A person who creates a trust is called a settlor.
B)A person who creates a trust is called a settlor.
C)A person who creates a trust is called a settlor.
D)A person who creates a trust is called a settlor.
E)A person who creates a trust is called a settlor.

Question 10

An)________ trust is a trust created by a court rather than a settlor.

Accepted Answer

A)Courts,rather than settlors,create implied trusts.
B)Courts,rather than settlors,create implied trusts.
C)Courts,rather than settlors,create implied trusts.
D)Courts,rather than settlors,create implied trusts.
E)Courts,rather than settlors,create implied trusts.

Question 11

The term covers a variety of legal instruments a person can use to express his or her wishes about efforts to prolong life.

Accepted Answer

A)A person can express his or her wishes regarding limits on prolonging his or her
life through advance directives,which include a variety of legal instruments.
B)A person can express his or her wishes regarding limits on prolonging his or her life through advance directives,which include a variety of legal instruments.
C)A person can express his or her wishes regarding limits on prolonging his or her life through advance directives,which include a variety of legal instruments.
D)A person can express his or her wishes regarding limits on prolonging his or her life through advance directives,which include a variety of legal instruments.
E)A person can express his or her wishes regarding limits on prolonging his or her life through advance directives,which include a variety of legal instruments.

Question 12

Which of the following is a true statement regarding Winona's claim that Keisha was entitled to nothing because Samuel was suffering from a mental illness and did not know what he was doing when he stated that Keisha should take everything?

Accepted Answer

A)Courts decide whether a person is of sound mind by considering whether the testator knows the extent of his or her property,understands traditions regarding who should get the property even though the testator does not have to follow tradition),knows he or she is making a will,and is not delusional.

Question 13

Which of the following is a false statement regarding trusts?

Accepted Answer

A)A settlor is not allowed to revoke a trust unless he or she reserves a right to
revoke the trust.
B)A settlor is not allowed to revoke a trust unless he or she reserves a right to revoke the trust.
C)A settlor is not allowed to revoke a trust unless he or she reserves a right to revoke the trust.
D)A settlor is not allowed to revoke a trust unless he or she reserves a right to revoke the trust.
E)A settlor is not allowed to revoke a trust unless he or she reserves a right to revoke the trust.

Question 14

Which of the following is not a requirement of a witness to a will?

Accepted Answer

A)A witness must witness the signing of the will and then sign as a witness at the
end of the document.A person who will receive property under a will,a beneficiary,cannot be a witness.Also,witnesses must be of sound mind.
B)A witness must witness the signing of the will and then sign as a witness at the end of the document.A person who will receive property under a will,a beneficiary,cannot be a witness.Also,witnesses must be of sound mind.
C)A witness must witness the signing of the will and then sign as a witness at the end of the document.A person who will receive property under a will,a beneficiary,cannot be a witness.Also,witnesses must be of sound mind.
D)A witness must witness the signing of the will and then sign as a witness at the end of the document.A person who will receive property under a will,a beneficiary,cannot be a witness.Also,witnesses must be of sound mind.
E)A witness must witness the signing of the will and then sign as a witness at the end of the document.A person who will receive property under a will,a beneficiary,cannot be a witness.Also,witnesses must be of sound mind.

Question 15

What type of trust did Jasmine set up to encourage her family members to go to school or work?

Accepted Answer

A)One new kind of trust is a family incentive trust.This kind of trust responds to
concerns raised by wealthy businesspersons,who worry about what their wealth might do to their families.With a family incentive trust,the person who designs the trust can create incentives for certain behavior.
B)One new kind of trust is a family incentive trust.This kind of trust responds to concerns raised by wealthy businesspersons,who worry about what their wealth might do to their families.With a family incentive trust,the person who designs the trust can create incentives for certain behavior.
C)One new kind of trust is a family incentive trust.This kind of trust responds to concerns raised by wealthy businesspersons,who worry about what their wealth might do to their families.With a family incentive trust,the person who designs the trust can create incentives for certain behavior.
D)One new kind of trust is a family incentive trust.This kind of trust responds to concerns raised by wealthy businesspersons,who worry about what their wealth might do to their families.With a family incentive trust,the person who designs the trust can create incentives for certain behavior.
E)One new kind of trust is a family incentive trust.This kind of trust responds to concerns raised by wealthy businesspersons,who worry about what their wealth might do to their families.With a family incentive trust,the person who designs the trust can create incentives for certain behavior.

Question 16

What was the effect of Samuel's statement that Keisha should take everything,assuming he was of sound mind?

Accepted Answer

A)An oral will is a will that the testator declares verbally during his or her last
illness,in front of witnesses,who later write down the person's wishes.
B)An oral will is a will that the testator declares verbally during his or her last illness,in front of witnesses,who later write down the person's wishes.
C)An oral will is a will that the testator declares verbally during his or her last illness,in front of witnesses,who later write down the person's wishes.
D)An oral will is a will that the testator declares verbally during his or her last illness,in front of witnesses,who later write down the person's wishes.
E)An oral will is a will that the testator declares verbally during his or her last illness,in front of witnesses,who later write down the person's wishes.

Question 17

How many states,if any,have adopted the Uniform Anatomical Gifts Act?

Accepted Answer

A)The Uniform Anatomical Gifts Act UAGA)has been adopted by every state in
the United States.
B)The Uniform Anatomical Gifts Act UAGA)has been adopted by every state in the United States.
C)The Uniform Anatomical Gifts Act UAGA)has been adopted by every state in the United States.
D)The Uniform Anatomical Gifts Act UAGA)has been adopted by every state in the United States.
E)The Uniform Anatomical Gifts Act UAGA)has been adopted by every state in the United States.

Question 18

Signatories to agree to accept wills of other signatories for probate,as to matters of form,if such wills are executed with the provisions of the convention.

Accepted Answer

A)In 1973,official delegates of 42 countries met in Washington,D.C. ,to adopt the
Convention Providing for a Uniform Law on the Form of an International Will.Those who signed the 1973 convention for uniform law agreed to accept wills of other signatories for probate,as to matters of form,if such wills are executed with the provisions of the convention.
B)In 1973,official delegates of 42 countries met in Washington,D.C. ,to adopt the Convention Providing for a Uniform Law on the Form of an International Will.Those who signed the 1973 convention for uniform law agreed to accept wills of other signatories for probate,as to matters of form,if such wills are executed with the provisions of the convention.

Question 19

An)________ trust is created by a court to hold property in trust for its rightful owner.

Accepted Answer

A)A court creates a constructive trust to hold property in trust for its rightful owner.
B)A court creates a constructive trust to hold property in trust for its rightful owner.
C)A court creates a constructive trust to hold property in trust for its rightful owner.
D)A court creates a constructive trust to hold property in trust for its rightful owner.
E)A court creates a constructive trust to hold property in trust for its rightful owner.

Question 20

Which of the following is a false statement regarding the trust system in India?

Accepted Answer

A)Whereas European civil law provides the underpinnings of trusts,in countries such as India,religion provides the underpinnings of legal constructs that determine how families can pass wealth from generation to generation.
B)Whereas European civil law provides the underpinnings of trusts,in countries such as India,religion provides the underpinnings of legal constructs that determine how families can pass wealth from generation to generation.
C)Whereas European civil law provides the underpinnings of trusts,in countries such as India,religion provides the underpinnings of legal constructs that determine how families can pass wealth from generation to generation.
D)Whereas European civil law provides the underpinnings of trusts,in countries such as India,religion provides the underpinnings of legal constructs that determine how families can pass wealth from generation to generation.
E)Whereas European civil law provides the underpinnings of trusts,in countries such as India,religion provides the underpinnings of legal constructs that determine how families can pass wealth from generation to generation.

Quiz 52: Wills and Trusts