Wills and Trust Quiz - Chapter 53 - West's Business Law, 7th Edition

1. Jeff dies in a horrible blimp accident over the Orange Bowl on New Year's Day.
He leaves behind a wife and two children, but does not have a will. What will
happen to his property?

a. Common law principles will determine where it goes.
b. It will go to the state in which he last resided.
c. It will pass according to state statutes.
d. none of the above

2. A man dies with three children, A, B, and C. The will leaves $40,000 to A and
B, and only $20,000 to C. The intestacy laws in the man's state say that, in a
family like the deceased, all children will inherit an equal amount. C is angry, and
wants the same amount as his siblings received. How much will C ultimately
receive?

a. $0
b. $20,000
c. $33,333
d. $40,000

3. Melissa dies, and her will names Bob as the person she wishes to settle her
affairs. If Bob accepts these duties, he will become a(n)

a. testator
b. executor
c. administrator
d. dominatrix

4. Tony dies and leaves his farm to his son. This type of gift is called a

a. devise.
b. bequest.
c. legacy.
d. none of the above

5. Leonard is crushed by a meteor. His will leaves $80,000 to his son, Junior. What
type of bequest will Junior receive?

a. specific
b. general
c. residuary
d. contingent

6. Son Stephen dies in 1991 with a wife but no children. In 1993 Father Frank dies,
and his will leaves $50,000 to Stephen and $50,000 to Stephen's brother Bill. Frank
has no other heirs. What will happen to Stephen's gift?

a. It will go to Stephen's widow.
b. It will go to Bill.
c. It will escheat to the state.
d. none of the above

7. Marty writes a will when he is 14 leaving all his baseball cards to his friend
Mikey. He puts it in a drawer and never thinks of it again. How old will Marty be
when the will becomes valid and enforceable?

a. 14
b. 18
c. 21
d. It will never become valid.

8. Robert Merks, III sits down to write his will. He finishes an otherwise valid will,
and now only must sign it. Which of the following signatures will create a valid will?

a. "Robert"
b. "Bob"
c. "X"
d. all of the above

9. Which of the following people may legally act as a witness to a will?

a. a 12-year-old child
b. an insane adult
c. both A and B
d. none of the above

10. Tony has only a single copy of his will. Which of the following occurrences will
revoke his will?

a. Tony intentionally burns it.
b. Tony is careless with a cigarette and accidentally burns it.
c. Tony's wife steals it and burns it.
d. all of the above

11. Bill and Hillary are married. In 1996, Bill writes a will that gives her 75% of his
assets. The intestacy laws in Bill's state would give Hillary 50%. In 1998, Bill and
Hillary are divorced. Bill never revokes his will. In 1999, Bill dies. What percentage
of his assets will Hillary receive?

a. 0
b. 50
c. 75
d. none of the above

12. Bill and Hillary are married. In 1996, Bill writes a will that gives her 25% of his
assets. The intestacy laws in Bill's state would give Hillary 50%. Bill dies in 1999.
Hillary wants to know what choices she has in taking Bill's estate. She may want
some of her money to pass to her daughter by intestacy laws. What percentage may
she choose to take?

a. 25%
b. 50%
c. 0%
d. all of the above

13. Andy dies, leaving behind a wife and two children. He is $10,000 in debt when
he dies, and he leaves no will. Who has first priority at receiving Andy's assets?

a. his wife
b. his creditors
c. his children
d. the state

14. Alex dies intestate. He leaves the following relatives: Wife Wilma, Brother
Barney, and Father Frank. What percentage of Alex's estate will Wilma receive?

a. 0
b. 33
c. 50
d. 100

15. Which of the following can inherit under most intestacy laws?

a. an illegitimate child whom the father does not know of
b. an adopted child
c. a stepchild
d. none of the above

16. Sam dies intestate, and the following survive him: Stepdaughter Sue, Grandson
Gary, Mother Minnie, and Brother Bob. Which of these people will have the
highest priority under intestacy laws?

a. Stepdaughter Sue
b. Brother Bob
c. Grandson Gary
d. Mother Minnie

17. Al's will contains a provision that sets up a trust fund for the education of his
grandchildren. What type of trust is this?

a. an inter vivos trust
b. a cy pres trust
c. a testamentary trust
d. a spendthrift trust

18. Mel's father created a valid spendthrift trust for him. Mel has run up a large
amount of debt. Which of the following persons can get access to part of the trust?

a. an ex-wife to whom Mel owes child support
b. Mastercard
c. Phil, who won a tort case against Mel
d. all of the above

19. Father Frank creates an intervivos trust for his son's education. No termination
date is listed in the trust. The father dies in 1999. The son graduates from college in
2001. When will this trust terminate?

a. Immediately it fails for not listing an ending date.
b. in 1999
c. in 2001
d. never

20. Several months often pass between a death and a final distribution of assets
under a will. Who is in charge of managing assets during this period?

a. the heirs
b. a personal representative
c. the courts
d. none of the above

21. A personal representative _______________ usually required to post a bond.
_______________ has (have) the power to change this.

a. is; Heirs
b. is not; Heirs
c. is; The testator
d. is not; The testator

22. Tom dies with assets of $1,000,000. He leaves all of this money to his wife.
How much of this amount will have to be paid in federal estate taxes before it is
given to his wife?

a. $0
b. $250,000
c. $420,000
d. $500,000

23. Edna is 77, and wants to receive Medicaid. She has a home which is in need of
repair, and $200,000 cash. Which of these options would increase her chances of
successfully applying for Medicaid?

a. buying a Ferrari
b. making repairs to the house
c. giving away her cash to her children
d. both A and B

24. Andy is planning for the possibility that he will become disabled in his old age.
Which of these will transfer the greatest amount of decision-making power to his
son?

a. durable power of attorney
b. health-care power of attorney
c. a living will
d. a codicil

25. Dan has written a living will, asking that he not be placed on life support. He is
in an accident, and will die without life support. His doctor thinks it is remotely
possible he could recover if put on life support. His wife wants life support to be
used. Will it be used?

a. yes, because the doctor is not CERTAIN he will never recover
b. yes, because his wife wants it to be used
c. no, because the living will states otherwise
d. none of the above