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Business Law > Ch 51 Wills and Trusts > Flashcards

Ch 51 Wills and Trusts Flashcards

1
Q

True or false.

Wills provide for a testamentary disposition of property.

A

True

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2
Q

What is a will?

A
  • Final declaration of how a person desires to have his/her property disposed of after death
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3
Q

What is a trust?

A
  • Any arrangement by which property is transferred from one person to a trustee to be administered for the transferor’s or another party’s benefit
  • OR right of property (real or personal) held by one party for benefit of another
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4
Q

What do you call one who dies after having made a valid will?

A

Testate

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5
Q

What do you call one who dies without a valid will?

A

Intestate

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6
Q

What do you call one who dies without a valid will?

A

Intestate

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7
Q

Define escheat

A
  • No will or heirs

- State gets the estate

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8
Q

Can wills create a trust?

A

Yes

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9
Q

Can trusts exist in perpetuity?

A

NO (trust has to end 21 years after last person alive can benefit from it)

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10
Q

Can trusts exist in perpetuity?

A

NO (trust has to end 21 years after last person alive can benefit from it)

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11
Q

Can trusts exist in perpetuity?

A

NO (trust has to end 21 years after last person alive can benefit from it)

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12
Q

If you die intestate, who tells you how your assets will be distributed?

A

The state

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13
Q

If you die intestate, who tells you how your assets will be distributed?

A

The state

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14
Q

When does a will become effective?

A

When that person dies (X_X)

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15
Q

When does a will become effective?

A

When that person dies (X_X)

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16
Q

What does probating a will mean?

A
  • Establish its validity and carry the administration of the estate through a process supervised by a probate court
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17
Q

What does probating a will mean?

A
  • Establish its validity and carry the administration of the estate through a process supervised by a probate court
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18
Q

Are probate laws uniform?

A

NO (vary widely among states)

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19
Q

Are probate laws uniform?

A

NO (vary widely among states)

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20
Q

What is the Uniform Probate Code?

A
  • Standardized statutory scheme among the states having adopted the UPC
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21
Q

What is the Uniform Probate Code?

A
  • Standardized statutory scheme among the states having adopted the UPC
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22
Q

Define devise (w/r/t gifts by will).

A

Gift of real estate

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23
Q

Define bequest or legacy (w/r/t gifts by will).

A

Gift of personal property (car, money)

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24
Q

What is the difference b/w a bequest and a legacy (w/r/t gifts by will)?

A

No difference

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25
Q

A person who dies w/o having created a will is said to have died _____.

A

intestate

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26
Q

If a person dies intestate, what laws prescribe the distribution of property among heirs or next of kin?

A

Intestacy laws

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27
Q

If a person dies intestate and no heirs or kin can be found, what will have to the property?

A

Property will escheat (title will be transferred to the state)

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28
Q

What is the owner of a trust called?

A

Grantor or settlor

29
Q

What is the owner of a trust called?

A

Grantor or settlor

30
Q

What are two basic devices used in the process of estate planning?

A

Wills and trusts

31
Q

Define estate planning

A

Determining in advance how one’s property and obligations should be transferred on death

32
Q

Define estate planning

A

Determining in advance how one’s property and obligations should be transferred on death

33
Q

What do you call the court responsible for administering any legal problems surrounding a will?

A

Probate court

34
Q

What do you call the court responsible for administering any legal problems surrounding a will?

A

Probate court

35
Q

What do you call the personal rep named in a will?

A

Executor

36
Q

What do you call a personal rep appointed by the court for a decedent who dies w/o a will?

A

Administrator

37
Q

Is testamentary capacity the same as contractual capacity?

A

NO (little lower level)

38
Q

To have testamentary capacity, what must one have?

A
  • understanding of the general nature of one’s assets and the natural object of their bounty
39
Q

To have testamentary capacity, what must one have?

A
  • understanding of the general nature of one’s assets and the natural object of their bounty
40
Q

What is a nuncapative will?

A

Deathbed will

41
Q

What do you call a deathbed will?

A

Nuncapative will

42
Q

What are the requirements for a nuncapative will?

A
  • Two or more witnesses who heard statement

- Applies to personal property

43
Q

What is a holographic will?

A
  • Will written entirely in testator’s handwriting

- Valid even w/o witnesses

44
Q

What is a holographic will?

A
  • Will written entirely in testator’s handwriting

- Valid even w/o witnesses

45
Q

What do you call a will written entirely in testator’s handwriting?

A

Holographic will

46
Q

What are the five requirements for a valid will?

A

1) Need testamentary capacity and intent
2) In writing
3) Need signature
4) Need witnesses (unless holographic will)
5) Publication requirements

47
Q

What is a codicil?

A
  • Changing just a specific provision
48
Q

How can a will be revoked?

A
  • Physical act of testator (e.g. shredding it)
  • Revocation by a subsequent writing (e.g. codicil)
  • Revocation by operation of law (e.g. marriage or divorce)
49
Q

What is a codicil?

A
  • Changing just a specific provision
50
Q

Can a spouse elect to take a forced share of the estate if the deceased spouse does not provide any further support?

A

YES (50% in Indiana)

51
Q

True or false.

A prenuptial agreement can address what happens upon one’s death.

A

True

52
Q

True or false.

A prenuptial agreement can address what happens upon one’s death.

A

True

53
Q

What is per stirpes distribution?

A
  • Method of dividing an intestate share by which a class or group of distributees take the share that their deceased parent would have been entitled to inherit had that parent lived
54
Q

What is per capita distribution?

A
  • Each person takes an equal share of the estate at the same generational level
55
Q

What is a trust?

A
  • Right of property (real or personal) held by one party for the benefit of another
56
Q

What are the essential elements of a trust?

A

1) designated beneficiary
2) designated trustee
3) fund sufficiently identified to enable title to pass to trustee
4) actual delivery to the trustee w/ intention of passing title

57
Q

What are the essential elements of a trust?

A

1) designated beneficiary
2) designated trustee
3) fund sufficiently identified to enable title to pass to trustee
4) actual delivery to the trustee w/ intention of passing title

58
Q

What is an express trust?

A

Trusts created specifically

59
Q

What are two types of express trusts?

A

1) Living trusts

2) Testamentary trusts

60
Q

What are three types of express trusts?

A

1) Living trusts
2) Testamentary trusts
3) Charitable trusts

61
Q

What are four types of express trusts?

A

1) Living trusts
2) Testamentary trusts
3) Charitable trusts
4) Spendthrift trusts

62
Q

What are four types of express trusts?

A

1) Living trusts
2) Testamentary trusts
3) Charitable trusts
4) Spendthrift trusts

63
Q

What are the duties of a trustee?

A
  • Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
64
Q

What are the duties of a trustee?

A
  • Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
  • OBRIEN: Better to have institutional trustee
65
Q

What are the duties of a trustee?

A
  • Act w/ honesty, good faith, and prudence in administering the trust and must exercise a high degree of loyalty toward the trust beneficiaries
  • OBRIEN: Better to have institutional trustee
66
Q

Can a trust be terminated when its purposes become illegal?

A

YES

67
Q

Can a trust be terminated when its purposes become illegal?

A

YES

68
Q

Can a trust be terminated when its purposes become illegal?

A

YES

69
Q

Can a trust be terminated when its purposes become illegal?

A

YES

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