4040: Final Exam
a - correct answer ✔1 Which of the following are forms of legal interests in
owning property?
1. A term of years
2. A fee simple interest
3. A life estate interest
1, 2, and 3
1 only
1 and 2
2 and 3
a - correct answer ✔1 Which of the following statements regarding property
held as joint tenants with right of survivorship (JTWROS) is(are) CORRECT?
1. Under a joint tenancy, each owner has an undivided interest in the property.
2. Joint tenancies may only be established between spouses.
,3. All joint tenants have the right to sever their interest in the property without
the consent of the other joint tenant(s).
4. A will is necessary to pass a joint tenant's interest in the property to the
other joint tenant at death.
1 and 3
2 and 3
2, 3, and 4
1 only
c - correct answer ✔1 Which of the following statements regarding
community property is(are) CORRECT?
1. Assets inherited by 1 spouse during the marriage generally are not
community property.
2. The community property system generally assumes that assets acquired
during marriage belong equally to both spouses.
3. Community property generally avoids probate.
4. Assets acquired by either spouse before marriage generally become
community property upon their marriage.
,1 only
1, 2, and 3
1 and 2
2 and 4
c - correct answer ✔1 Which of the following statements regarding trusts
is(are) CORRECT?
I. The trustee has a fiduciary responsibility to act on behalf of the trust
beneficiaries.
II. The trust assets held by the trust are known as the trust corpus.
Neither I nor II
I only
Both I and II
II only
d - correct answer ✔1 The person who establishes a trust is called
Selected Answer:
, The executor
The beneficiary
The grantor (or settlor)
b - correct answer ✔1 Who owns the legal title to trust assets?
Selected Answer:
The beneficiary
The trustee
The settlor
The grantor
c - correct answer ✔1 Which of the following statements regarding tenancy
in common and tenancy by the entirety is CORRECT?
Tenancy by the entirety can be owned by nonspouses.
Tenancy in common passes by operation of law and avoids probate when 1
owner dies.
a - correct answer ✔1 Which of the following are forms of legal interests in
owning property?
1. A term of years
2. A fee simple interest
3. A life estate interest
1, 2, and 3
1 only
1 and 2
2 and 3
a - correct answer ✔1 Which of the following statements regarding property
held as joint tenants with right of survivorship (JTWROS) is(are) CORRECT?
1. Under a joint tenancy, each owner has an undivided interest in the property.
2. Joint tenancies may only be established between spouses.
,3. All joint tenants have the right to sever their interest in the property without
the consent of the other joint tenant(s).
4. A will is necessary to pass a joint tenant's interest in the property to the
other joint tenant at death.
1 and 3
2 and 3
2, 3, and 4
1 only
c - correct answer ✔1 Which of the following statements regarding
community property is(are) CORRECT?
1. Assets inherited by 1 spouse during the marriage generally are not
community property.
2. The community property system generally assumes that assets acquired
during marriage belong equally to both spouses.
3. Community property generally avoids probate.
4. Assets acquired by either spouse before marriage generally become
community property upon their marriage.
,1 only
1, 2, and 3
1 and 2
2 and 4
c - correct answer ✔1 Which of the following statements regarding trusts
is(are) CORRECT?
I. The trustee has a fiduciary responsibility to act on behalf of the trust
beneficiaries.
II. The trust assets held by the trust are known as the trust corpus.
Neither I nor II
I only
Both I and II
II only
d - correct answer ✔1 The person who establishes a trust is called
Selected Answer:
, The executor
The beneficiary
The grantor (or settlor)
b - correct answer ✔1 Who owns the legal title to trust assets?
Selected Answer:
The beneficiary
The trustee
The settlor
The grantor
c - correct answer ✔1 Which of the following statements regarding tenancy
in common and tenancy by the entirety is CORRECT?
Tenancy by the entirety can be owned by nonspouses.
Tenancy in common passes by operation of law and avoids probate when 1
owner dies.
