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Exam 40: Wills and Trusts

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Question 21

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Under intestacy laws, the debts of the decedent are transferred to his or her heirs for payment.

A) True
B) False

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Question 22

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Under intestacy laws, most of an intestate's assets pass to the decedent's parents.

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B) False

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Question 23

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To be legally effective, a trust must be express.

An express trust is created or declared in definite terms.

Maria does not execute a will before she dies. The distribution of her estate is regulated by

Kent's will states, "I leave my blue sports car to Lorena." This is

A trust is an arrangement to administer property for the benefit of another.

Aron owns several shares of stock with Beth, his sister, and an apartment building with Carl, his brother, in both cases as owners with rights of survivorship. Aron is a partner with Debra in Aron & Debra Accountants, and obtains a life insurance policy with Debra as the designated beneficiary. Aron writes a will that gives particular items of personal property, as well as specific amounts of cash, to his children and his friends. The will leaves the residue of the estate to Eve, Aron's favorite cousin. After Aron writes his will, Carl dies but Aron does not revise his will. Aron, on his deathbed, makes a gift to the United Way. Will the stock, the apartment building, the proceeds from the life insurance policy, and the gift to the United Way become part of Aron's estate and be distributed under the will? If not, how will these items be distributed and to whom?

In most states, the birth of a child after the execution of a will may affect the distribution of the estate.

Any interested party can revoke an executed will at any time.

Finn does not execute a will before he dies, with no surviving spouse or child. His survivors include his grandson Gage and his niece Hailey. In most states, his estate would pass to

After someone dies, all of the real and personal that he or she owns will be transferred to others.

On Bob's death, all of his property can be transferred through

Paul makes a gift of real estate in his will to Orly. This gift is

A divorce occurring after a will has been written does not revoke dispositions of property made under the will to the former spouse.

Ralph creates a trust by his will for the benefit of Stella and her family to come into existence on Ralph's death. This is

Idina executes a deed conveying ownership of her home to a trust for the benefit of her son Jim. The trust designates Idina as the trustee. When she dies, the house will pass without going through probate to

Patty executes a will, leaving her estate to her spouse Quentin. They have a daughter Rita. Later, Patty and Quentin divorce. Patty does not execute a new will before she dies. With respect to Patty's estate, Quentin is entitled to

In an irrevocable living trust, legal title to the trust property passes to the beneficiary.

Geoff opens an account for $250,000 at Home Federal Bank. The account provides that the funds are held in trust for Harriet, Geoff's daughter. This is