Purdue PA221 2020 August Unit 5 Quiz Latest

PA221 Wills, Trusts, and Estate Planning

Unit 5 Quiz   

Question 1          The purpose of estate administration is to help the individual acquire and accumulate assets.

                True

                False

Question 2          Disposable income is that income a person has after paying all taxes and expenses for a given period of time.

                True

                False

Question 3          Nonprobate assets pass directly from the decedent to another person without court authorization.

                True

                False

Question 4          A gift is transfer of property from the donee to the donor without consideration.

                True

                False

Question 5          Trusts can only be created at the time of death.

                True

                False

Question 6          Intestate describes someone who has died with a valid will.

                True

                False

Question 7          A person designated in the will to be the personal representative is known as the general administrator.

                True

                False

Question 8          To probate a will, the petition will be filed with the court in the state where the decedent was domiciled at the time of his or her death.

                True

                False

Question 9          Tangible personal property is property that is not perceptible to the senses and cannot be touched.

                True

                False

Question 10        When a person grants a life estate to another based upon the grantee's life, it is said to be a life estate pur autre vie.

                True

                False

Question 11        In joint tenancy, each co-tenant owns a divisible portion of the whole.

                True

                False

Question 12        A tenant in common may seek their share in the property by means of partition.

                True

                False

Question 13        Tenancy by the entireties is a form of joint ownership that can be used by any party.

                True

                False

Question 14        A lien is a right to property acquired by a creditor of the property owner.

                True

                False

Question 15        Chandeliers, sinks, and built-in cabinets are considered personal property

                True

                False

Question 16        If a person dies without a valid will, he or she is referred to as a testate.

                True

                False

Question 17        Intestate succession laws govern the distribution of real property but not personal property.

                True

                False

Question 18        To determine who receives the intestate's property, the relationships between the heirs to the decedent are considered.

                True

                False

Question 19        Per capita means equally to each person.

                True

                False

Question 20        Per stirpes refers to taking property by right of representation.

                True

                False

Question 21        Issue refers to all lineal descendants of the decedent.

                True

                False

Question 22        Escheat refers to the property of the decedent being given over to the surviving spouse.

                True

                False

Question 23        Under most state statutes, adopted children are considered blood relatives of the adopted family.

                True

                False

Question 24        Other than the decedent’s spouse, individuals related by marriage are not considered at all in determining intestate succession rights.

                True

                False

Question 25        Sally Blue has a will prepared stating that she is leaving her entire estate to her two children, Billy and Molly, per stirpes. Molly has two children. At the time of Sally's death, Molly has predeceased but her children are still living. Based upon these facts, Molly's two children would then each receive one-third of Sally's estate.

                True

                False

Question 26        To probate a will means to prove that a specific will is valid and has been executed pursuant to state statutes.

                True

                False

Question 27        The person who executes a will is called an executor.

                True

                False

Question 28        For a will to be valid, the testate usually must be at least 18 years old and have the requisite mental capacity.

                True

                False

Question 29        The purposes of the formalities in executing a will are ritual, evidence, and protection.

                True

                False

Question 30        One rule consistent across all states is that a valid will must be signed in the presence of only two witnesses.

                True

                False

Question 31        Instructions about payment of expenses, debts, and funeral instructions are never included in a will.

                True

                False

Question 32        A statutory will is generally a preprinted form.

                True

                False

Question 33        A joint will is a document usually made by two people who are married.

                True

                False

Question 34        Nuncupative wills are wills that are handwritten.

                True

                False

Question 35        A key role of the personal representative is to manage the decedent's assets.

                True

                False

Question 36        Which is an example of real property?

Apartment building

Automobile

Crops cultivated for sale

Stocks and bonds

Question 37        Which is an example of tangible personal property?

Trademark

 Cash

Stamp collection

Government bond

Question 38        Which is an example of probate property?

Property owed in the decedents name only

Property owned in tenancy

Money placed in a bank account as a Totten trust

Annuity contracts with a named beneficiary

Question 39        Which is an advantage of joint tenancy?

All joint tenants must agree before the joint tenancy can be terminated.

The person who creates the joint tenancy has complete control over the property.

Joint tenancy avoids probate.

The surviving recipient of the property previously held in joint tenancy is always the intended beneficiary.

Question 40        Which is NOT an example of community property?

Property owned by the spouses in partnerships

Property obtained from community property income during the marriage

Income earned or acquired during the marriage by either spouse’s employment

Inheritance to a single spouse during the marriage

Question 41        Which of the following is an advantage of a will?

It allows a person to leave property to someone who would not be entitled to inherit under

intestate succession.

The probate of a will is generally quick, easy, and inexpensive.

It retains privacy and confidentiality about the decedent's property and beneficiaries.

It eliminates complicated procedures.

Question 42        After execution of a will, the testator, by an intentional act of ademption, has the right to do all of the

following EXCEPT:

Revoke or cancel a testamentary gift

Add a beneficiary

Deliver the gift to the beneficiary before the testator’s death

Substitute a different gift for the original one

Question 43        Which is NOT a general rule of distribution under most states’ intestate succession statutes?

If an intestate decedent is survived by a spouse and children, some of whom are not the children

of the surviving spouse, the spouse receives a lump sum of money and/or a portion of the estate,

and only the children born to both the decedent and the surviving spouse receive the other half of

the estate.

If an intestate decedent is survived by a spouse and children who are all born to the surviving

spouse and decedent, the spouse receives a lump sum of money and/or a portion of the estate, and

the children receive the remainder of the estate equally.

If an intestate decedent has no surviving spouse or kindred relatives, the state receives the

decedent’s property.

If an intestate decedent has no surviving spouse or lineal descendants but is survived by a parent

and other collateral relatives, the parent will receive the estate.

Question 44        Which is NOT a requirement for the creation of a valid will?

The testator or a person other than the testator must sign the will or make some other writtenmark.

The testator must intend that a document be his or her last will.

The will must be signed by witnesses.

The beneficiary must be legally and mentally capable.

Question 45        Which of the following indicates that a testator lacks mental capacity?

The testator does not remember the persons who are the “natural objects of his or her bounty.”

The testator has a low level of intelligence or suffers from a mental illness or senility.

The testator suffers from insane delusions.

The testator is neglectful of his or her person and makes a will containing eccentricities.

Question 46        Witnesses to the execution of a will must do all of the following EXCEPT:

Sign in the presence of one another

Sign at the bottom of the will

Sign in the presence of the testator

Witness the testator’s signature or witness the acknowledgment of the signature

Question 47        Which constitutes grounds for contesting a will?

The will has been revoked.

The testator was uninfluenced by fraud to write or change the will.

The will has been properly executed.

The will is free of contradictions.

Question 48        In order for a will to be valid, it must:

Include the date of death

Be signed only by witnesses

Be witnessed by no fewer than five people

Be written or typed with a typewriter or word processor

Question 49        Who is the only person a testator CANNOT disinherit?

Surviving adult child

Surviving minor child

Surviving spouse

 Sibling

 Question 50       The purpose of estate planning is to:

Acquire property

Minimize taxes

Plan for distribution of property on death

All of the above