Ch12 estate administration

Question 1

The process of administering an estate and determining the validity of a will

Answer 1

Probate

Question 2

How many states have adopted the Uniform Probate Code and when was it released?

Answer 2

16 states, it was released in 1969

Question 3

The property and debts of a decedent subject to administration by the personal representative of an estate

Answer 3

Probate estate

Question 4

A debt which is supported by a pledge, mortgage, or lien on assets belonging to the debtor

Answer 4

Secured loan

Question 5

A secure claim or lien on real property

Answer 5

Mortgage

Question 6

What is the difference between a devise and an heir?

Answer 6

A devise is a transfer of real or personal property through a will or inter vivos (between living people).
An heir is when there is no will and a person in the blood line takes intestee (Spouse as well)

Question 7

Estate where the assets exceed the liabilities

Answer 7

Solvent estate

Question 8

Estate that does not have sufficient asserts to pay the debts of the decedent and/or the estate

Answer 8

Insolvent estate

Question 9

A debt which is accorded a priority, advantage, or privilage

Answer 9

Preferred claims

Question 10

Claims that are a debit which is supported by a pledge, mortgage, or lien on assets belonging to the debtor (person owed money)

Answer 10

Secured claims

Question 11

When is an informal distribution of an estate usually authorized?

Answer 11

When the value of an estate does not reach the specified amount that would require a formal probate of the estate

Question 12

Document that is a legal instrument used by the principal to delegate legal authority to an agent (attorney in fact) to make property, financial, and other legal decisions on their behalf

Answer 12

Power of attorney

Question 13

Written instrument granting an agent broad powers to act for the principal
-Ceases to exist upon the disability or incapacity of the principal

Answer 13

General power of attorney (ordinary power of attorney)

Question 14

A written instrument authorizing one person to act as an agent for another, effective only upon a certain event occurring.
-Employed by individuals that wish to delegate an agent to manage their affairs in the event that they become disabled or mentally incompetent

Answer 14

Springing power of attorney (conditional power of attorney)

Question 15

The authority granted under a power of attorney will remain in effect even after the disability or incapacity of the principal

Answer 15

Durable power of attorney

Question 16

Document that governs the witholding or withdrawal of life-sustaining treatment from an individual in the event of an incurable or irreversible condition that will cause death within a relatively short time
-Becomes effective when such person is incapable of making decisions regarding their medical treatment for themselves

Answer 16

Living will