Business Law
1. Trusts are used to transfer property that is to be held and managed for the benefit of another person or persons. A) True B) False
2. Pursuant to per capita distribution, all the lineal descendants equally share the property of the estate. A) True B) False
3. What is the attestation clause for wills? A) the requirement of signatures of witnesses on a will after that of the testator's B) the condition that the witness must reside in the jurisdiction in which the testator is domiciled C) the stipulation that only the testator's attorney can be a witness to the will D) the requirement of the beneficiary's presence when making the will
4. Which of the following statements is true of a testator's signature on a will? A) The testator's signature must be obtained in the presence of the sole beneficiary as the principal witness. B) The testator's signature must appear at the end of the will to prevent chances of any fraud. C) The use of nicknames and honorary titles to sign a will render it unenforceable and invalid. D) The will need not be signed by the testator if it was already attested by witnesses.
5. A beneficiary under the will cannot be the witness of that will. A) True B) False
6. ________ is a principle that says if a testator leaves a specific devise of property to a beneficiary, but the property is no longer in the estate when the testator dies, the beneficiary receives nothing. A) Attestation B) Ademption C) Bailment D) Abatement
7. A living will states a person's wishes regarding estate planning. A) True B) False
8. The process of a deceased's property being collected, debts and taxes being paid, and the remainder of the estate being distributed is known as a(n) ________. A) ademption B) probate C) audit D) abatement
9. What is a holographic will? A) a will that is orally declared at a testator's deathbed B) a will that is revoked on behalf of a testator by a legal attorney C) a will that is entirely handwritten and signed by the testator D) a will that requires the beneficiary to be the witness of the will
10. A testamentary trust comes into existence while the settlor is still alive. A) True B) False
11. A health care directive names an individual or individuals who can make health care decisions if the maker of the directive is unable to do so. A) True B) False
12. A will can be created to come into effect during one's lifetime. A) True B) False
13. An oral will that is made before a witness during the testator's last illness is defined as a ________. A) living will B) joint will C) holographic will D) nuncupative will
14. Who is an executor of a probate? A) a person appointed by the government to conduct the probate B) a person designated in the will to conduct the probate C) a person who is beneficiary of the probate D) an attorney who is usually appointed to help administer the estate and to complete the probate
15. The primary purpose of using a living trust is to avoid probate associated with using a will. A) True B) False
16. A properly executed subsequent will revokes a prior will. A) True B) False
17. What is a codicil? A) a duplicate of a will that is used in case the original is destroyed B) a separate document that can be executed to amend a will C) a type of will that cannot be amended once created D) a will that has been attested by the beneficiary of the will
18. A probate can only be conducted by a lineal descendant of the testator. A) True B) False
19. A distribution of an estate in which grandchildren and great-grandchildren of the deceased inherit by representation of their parent is known as a(n) ________. A) abatement B) ademption C) per stirpes distribution D) per capita distribution 20. A gift of $30,000 to a named beneficiary is an example of a ________ gift. A) residuary B) general C) special D) legacy.