Chapter 52—DECEDENTS' ESTATES AND TRUSTS
TRUE/FALSE
1. The debts of a decedent are paid prior to distribution of any balance of the estate to those entitled to
receive it.
ANS: T MSC: AACSB Analytic
2. Testate distribution describes the distribution that is made when the decedent leaves an invalid will.
ANS: F MSC: AACSB Analytic
3. A beneficiary of personal property by will may be called a devisee.
ANS: F MSC: AACSB Analytic
4. Generally, the right to make a will is limited to persons 18 or older.
ANS: T MSC: AACSB Analytic
5. To make a valid will, the testator must have testamentary capacity.
ANS: T MSC: AACSB Analytic
6. Testamentary intent makes the provisions of the testator effective and binding during the testator's life.
ANS: F MSC: AACSB Analytic
7. A will is very informal and may be created in any reasonable manner.
ANS: F MSC: AACSB Analytic
8. A written will must be signed by the testator at the bottom or end of the will.
ANS: T MSC: AACSB Analytic
9. Statutes often require that the attestation of witnesses be made in the presence of the testator and in the
presence of each other.
ANS: T MSC: AACSB Analytic
10. A will, to be effective, always must be dated.
ANS: F MSC: AACSB Analytic
11. A will cannot be modified by merely crossing out a clause and writing in something new.
ANS: T MSC: AACSB Analytic
,12. A will may only be revoked by operation of law; it may not be revoked by act of the testator.
ANS: F MSC: AACSB Analytic
13. A holographic will is an unwitnessed will that is written by the testator entirely by hand.
ANS: T MSC: AACSB Analytic
14. A living will, now legal in most states, provides that if the testator becomes unable to express his or
her wishes and is in an irreversible, incurable medical condition, he or she does not want life-
sustaining medical treatments.
ANS: T MSC: AACSB Analytic
15. The judge, not the decedent, has the privilege of naming who is to administer the estate of a person
who has died with a will.
ANS: F MSC: AACSB Analytic
16. One desiring to leave the balance of an estate to a specified person or group after specific bequests are
satisfied may do so by making a residuary bequest in a will.
ANS: T MSC: AACSB Analytic
17. When specifically bequeathed property is sold or given away by the testator prior to death, the bequest
is considered “redeemed.”
ANS: F MSC: AACSB Analytic
18. Antilapse statutes commonly provide that the gift to the deceased beneficiary shall not lapse but that
the children or heirs of that beneficiary may take the legacy in the place of the deceased beneficiary.
ANS: T MSC: AACSB Analytic
19. Under the Uniform Simultaneous Death Act, if survivorship cannot be established, the property of
each person is disposed of as though each had survived the other.
ANS: T MSC: AACSB Analytic
20. If a trust is created to take effect within the lifetime of the settlor, it is a testamentary trust.
ANS: F MSC: AACSB Analytic
21. The requirements to create a trust are uniform.
ANS: F MSC: AACSB Analytic
22. A trust is invalid if a beneficiary lacks capacity.
ANS: F MSC: AACSB Analytic
23. A failure by the settlor to name a trustee renders a trust invalid.
, ANS: F MSC: AACSB Analytic
24. Every trust must have a beneficiary.
ANS: T MSC: AACSB Analytic
25. When property is transferred to a trust, the trustee has legal title and the beneficiary has equitable title.
ANS: T MSC: AACSB Analytic
26. A trustee cannot make decisions on matters that could not be foreseen by the settlor.
ANS: F MSC: AACSB Analytic
27. A trustee can delegate the performance of personal duties.
ANS: F MSC: AACSB Analytic
28. A trustee is not permitted to profit personally from the position of trustee, other than to receive the
compensation allowed by contract or law.
ANS: T MSC: AACSB Analytic
29. A trustee may keep all matters associated with the trust secret.
ANS: F MSC: AACSB Analytic
30. A trust may be terminated by its own terms.
ANS: T MSC: AACSB Analytic
MULTIPLE CHOICE
1. Which of the following is generally not required for the testator to have testamentary capacity?
a. The testator knows the exact value of his or her estate.
b. The testator understands the writing to be a will.
c. The testator has a reasonable appreciation of the identity of relatives and friends.
d. The testator has a reasonable appreciation of the extent of the property that may exist at
death.
ANS: A MSC: AACSB Analytic
2. An individual who desires to make provisions that will be effective only on his or her death is said to
have:
a. probationary intent.
b. a prejudicial interest.
c. testamentary intent.
d. attestation intent.
ANS: C MSC: AACSB Analytic
3. Unless statutory requirements are met, a will is invalid and the testator:
a. is considered to have died testate.
b. is considered to have died intestate.
, c. is subject to federal law.
d. has provided guidelines of distribution.
ANS: B MSC: AACSB Analytic
4. Which of the following is not a correct statement concerning wills?
a. Attestation is the act of witnessing the execution of a will.
b. Most states require two (2) witnesses to the execution of the will.
c. A will must be dated.
d. Self-proved wills are wills that carry a presumption that they are valid if executed
according to the requirements set forth by statute.
ANS: C MSC: AACSB Analytic
5. A codicil:
a. must be executed with the same formalities as a will.
b. is treated the same as a will.
c. does not invalidate the entire will.
d. all of the above.
ANS: D MSC: AACSB Analytic
6. Where a testatrix executes a will and later has a child:
a. the child is prohibited by law from receiving anything from the estate.
b. many states hold that the will of the testatrix is partially revoked by operation of law to
provide a share to the after-born child.
c. a new will must be executed because the birth voids the original will.
d. the after-born child takes a share by escheat.
ANS: B MSC: AACSB Analytic
7. Probate is the act by which:
a. the court declares an instrument is a valid will.
b. a qualified person may contest the will.
c. the witnesses sign an attestation clause.
d. publication of the will takes place.
ANS: A MSC: AACSB Analytic
8. A will may be contested on grounds of:
a. lack of mental capacity of the testator.
b. undue influence, duress, or mistake.
c. forgery.
d. all of the above.
ANS: D MSC: AACSB Analytic
9. Letters testamentary:
a. are given to an administrator.
b. are given to an executor.
c. require a bond to be filed by the person to whom they are given if the will exempts the
requirement.
d. none of the above.
ANS: B MSC: AACSB Analytic
TRUE/FALSE
1. The debts of a decedent are paid prior to distribution of any balance of the estate to those entitled to
receive it.
ANS: T MSC: AACSB Analytic
2. Testate distribution describes the distribution that is made when the decedent leaves an invalid will.
ANS: F MSC: AACSB Analytic
3. A beneficiary of personal property by will may be called a devisee.
ANS: F MSC: AACSB Analytic
4. Generally, the right to make a will is limited to persons 18 or older.
ANS: T MSC: AACSB Analytic
5. To make a valid will, the testator must have testamentary capacity.
ANS: T MSC: AACSB Analytic
6. Testamentary intent makes the provisions of the testator effective and binding during the testator's life.
ANS: F MSC: AACSB Analytic
7. A will is very informal and may be created in any reasonable manner.
ANS: F MSC: AACSB Analytic
8. A written will must be signed by the testator at the bottom or end of the will.
ANS: T MSC: AACSB Analytic
9. Statutes often require that the attestation of witnesses be made in the presence of the testator and in the
presence of each other.
ANS: T MSC: AACSB Analytic
10. A will, to be effective, always must be dated.
ANS: F MSC: AACSB Analytic
11. A will cannot be modified by merely crossing out a clause and writing in something new.
ANS: T MSC: AACSB Analytic
,12. A will may only be revoked by operation of law; it may not be revoked by act of the testator.
ANS: F MSC: AACSB Analytic
13. A holographic will is an unwitnessed will that is written by the testator entirely by hand.
ANS: T MSC: AACSB Analytic
14. A living will, now legal in most states, provides that if the testator becomes unable to express his or
her wishes and is in an irreversible, incurable medical condition, he or she does not want life-
sustaining medical treatments.
ANS: T MSC: AACSB Analytic
15. The judge, not the decedent, has the privilege of naming who is to administer the estate of a person
who has died with a will.
ANS: F MSC: AACSB Analytic
16. One desiring to leave the balance of an estate to a specified person or group after specific bequests are
satisfied may do so by making a residuary bequest in a will.
ANS: T MSC: AACSB Analytic
17. When specifically bequeathed property is sold or given away by the testator prior to death, the bequest
is considered “redeemed.”
ANS: F MSC: AACSB Analytic
18. Antilapse statutes commonly provide that the gift to the deceased beneficiary shall not lapse but that
the children or heirs of that beneficiary may take the legacy in the place of the deceased beneficiary.
ANS: T MSC: AACSB Analytic
19. Under the Uniform Simultaneous Death Act, if survivorship cannot be established, the property of
each person is disposed of as though each had survived the other.
ANS: T MSC: AACSB Analytic
20. If a trust is created to take effect within the lifetime of the settlor, it is a testamentary trust.
ANS: F MSC: AACSB Analytic
21. The requirements to create a trust are uniform.
ANS: F MSC: AACSB Analytic
22. A trust is invalid if a beneficiary lacks capacity.
ANS: F MSC: AACSB Analytic
23. A failure by the settlor to name a trustee renders a trust invalid.
, ANS: F MSC: AACSB Analytic
24. Every trust must have a beneficiary.
ANS: T MSC: AACSB Analytic
25. When property is transferred to a trust, the trustee has legal title and the beneficiary has equitable title.
ANS: T MSC: AACSB Analytic
26. A trustee cannot make decisions on matters that could not be foreseen by the settlor.
ANS: F MSC: AACSB Analytic
27. A trustee can delegate the performance of personal duties.
ANS: F MSC: AACSB Analytic
28. A trustee is not permitted to profit personally from the position of trustee, other than to receive the
compensation allowed by contract or law.
ANS: T MSC: AACSB Analytic
29. A trustee may keep all matters associated with the trust secret.
ANS: F MSC: AACSB Analytic
30. A trust may be terminated by its own terms.
ANS: T MSC: AACSB Analytic
MULTIPLE CHOICE
1. Which of the following is generally not required for the testator to have testamentary capacity?
a. The testator knows the exact value of his or her estate.
b. The testator understands the writing to be a will.
c. The testator has a reasonable appreciation of the identity of relatives and friends.
d. The testator has a reasonable appreciation of the extent of the property that may exist at
death.
ANS: A MSC: AACSB Analytic
2. An individual who desires to make provisions that will be effective only on his or her death is said to
have:
a. probationary intent.
b. a prejudicial interest.
c. testamentary intent.
d. attestation intent.
ANS: C MSC: AACSB Analytic
3. Unless statutory requirements are met, a will is invalid and the testator:
a. is considered to have died testate.
b. is considered to have died intestate.
, c. is subject to federal law.
d. has provided guidelines of distribution.
ANS: B MSC: AACSB Analytic
4. Which of the following is not a correct statement concerning wills?
a. Attestation is the act of witnessing the execution of a will.
b. Most states require two (2) witnesses to the execution of the will.
c. A will must be dated.
d. Self-proved wills are wills that carry a presumption that they are valid if executed
according to the requirements set forth by statute.
ANS: C MSC: AACSB Analytic
5. A codicil:
a. must be executed with the same formalities as a will.
b. is treated the same as a will.
c. does not invalidate the entire will.
d. all of the above.
ANS: D MSC: AACSB Analytic
6. Where a testatrix executes a will and later has a child:
a. the child is prohibited by law from receiving anything from the estate.
b. many states hold that the will of the testatrix is partially revoked by operation of law to
provide a share to the after-born child.
c. a new will must be executed because the birth voids the original will.
d. the after-born child takes a share by escheat.
ANS: B MSC: AACSB Analytic
7. Probate is the act by which:
a. the court declares an instrument is a valid will.
b. a qualified person may contest the will.
c. the witnesses sign an attestation clause.
d. publication of the will takes place.
ANS: A MSC: AACSB Analytic
8. A will may be contested on grounds of:
a. lack of mental capacity of the testator.
b. undue influence, duress, or mistake.
c. forgery.
d. all of the above.
ANS: D MSC: AACSB Analytic
9. Letters testamentary:
a. are given to an administrator.
b. are given to an executor.
c. require a bond to be filed by the person to whom they are given if the will exempts the
requirement.
d. none of the above.
ANS: B MSC: AACSB Analytic
