T F (Part 5)

Question 1

If Husband, a Social Security beneficiary, predeceases his spouse (Wife) before W reaches the age of SS eligibility, the surviving spouse is still entitled to her H’s benefits until she reaches the age of 65.

Answer 1

True

Question 2

Husband and Wife own their home as a tenancy by entirety. W dies owing $7500.00 from a loan incurred before her marriage to H. The creditor may put a lien against W’s half-interest in the home.

Answer 2

False

Question 3

A settlor may create a revocable trust whereby he/she is the trustee as well as the beneficiary.

Answer 3

True

Question 4

A valid will created by one spouse, upon divorce, will treat the other spouse as if he/she is predeceased.

Answer 4

True

Question 5

In Illinois, a duly signed marital settlement agreement may contain language whereby both parties relinquish any right to any P.O.D. benefits, even if they remain the named beneficiary.

Answer 5

True

Question 6

Non-probate transfers may include joint tenancies with rights of survivorship.

Answer 6

True

Question 7

The Illinois Probate Act provides protections for posthumous children such as frozen embryos.

Answer 7

False

Question 8

A H&W with 2 married children (donees) who each have 4 children (donees) may give a total annual tax-free gift not exceeding $224,000.00.

Answer 8

False (2 kids+2spouses+8 Grandkids=12 donees. H&W can give $28,000/donee/yr. $28,000x 12= $336,000.00/yr.).

Question 9

A constructive trust is a trust that arises by force of law.

Answer 9

True

Question 10

Harold, a farmer in Jacksonville, Illinois, was out plowing his fields late one Sunday evening. Owing to the waning light, the wheel of his tractor rolled too close to the edge of a ditch, causing the ground to crumble beneath the machinery and the tractor to roll into the ditch on top of Harold, crushing him. Fearing death was near due to late hour’s oncoming cold and severed femur, Harold wrestled a penknife from the pocket of his overalls and carved, “In event of my death, I leave my wife Darla my 28 acre beet farm and the assets of our Morgan Stanley Account. All the rest, residue and, and remainder of my estate, real and personal, I leave to my two sons, Joe-Bob and Tonto to be distributed in equal shares.” Harold signs his name in blood, recording all this with his camera phone, unfortunately too damaged to make a single, last, life-saving call. He then dies, and is partially devoured by wolverines. He is discovered the next morning, last will and testament scratched into the tractor paint, signed in blood, and caught on video… Has Harold executed a valid will?

Answer 10

False

Question 11

If someone dies intestate that means they had a will prepared for them.

Answer 11

False- if someone dies testate that means they had a will prepared for them

Question 12

Illinois recognizes holographic wills.

Answer 12

False- Pursuant to statutory authority, Illinois does not recognize holographic wills

Question 13

In Illinois in order for there to be a valid will the testator must be over 18, of sound mind and memory, and the will must be attested by two witnesses.

Answer 13

True

Question 14

Once a presumption of undue influence has been established by the party contesting the will, the burden is on the proponent of the will to rebut the presumption by showing that the grantor acted freely and voluntarily and in good-faith.

Answer 14

True

Question 15

Putting your real property in a revocable inter vivos trust or grantor trust will have the effect of avoiding ancillary probate if the said property is located in a different state than the state in which your will (assuming you have one) gets probated?

Answer 15

True

Question 16

In general the trustee of a trust has the duty to diversify the assets of a trust meaning that not all of the assets of a trust should be held in one investment. In other words, some of the principal should be in stocks or equities and other in debts or bonds and some in real estate.

Answer 16

True

Question 17

If a testator names in his will that a certain beneficiary will receive the proceeds from his life insurance policy upon his death this is sufficient to overcome the actual beneficiaries named on the insurance policy?

Answer 17

False- the insurance policy is a contract between the insured and the company insuring. Accordingly, it must be honored irrespective of the provisions of the will.

Question 18

If property is held in joint tenancy and the testator dies devising his interest in the property to his son, this will be sufficient to make the son joint tenants with the other joint tenant.

Answer 18

False- when one joint tenant dies, his interest vanishes and because of the right of survivorship the other joint tenant now owns the property in fee.

Question 19

Grantor trusts or revocable trusts yield marked tax benefits for the settlor of the trust.

Answer 19

False- grantor trusts yield no marked tax benefits

Question 20

In general, when naming a trustee for a trust you should always name successor trustees of which the last in line is a bank or other financial institution.

Answer 20

True

Question 21

If the only surviving relatives are the spouse and the decedent’s parent(s), then the surviving spouse receives all the estate.

Answer 21

False

Question 22

An example of non probate property is property held in joint tenancy with right of survivorship.

Answer 22

True

Question 23

A Power of Attorney continues after the principal dies.

Answer:

Answer 23

False

Question 24

Verbal or video tapped wills are not legally recognized by Illinois law.

Answer 24

True

Question 25

Debbie has a $10,000 CD in joint tenancy with her son Chris. She has stated in her will that she
bequeaths all property to her niece, Bethany. Therefore, Bethany will receive the $10,000.

Answer 25

False

Question 26

Sarah had a long relationship with Juan, her attorney. Sarah owns Blackacre and wants to sell it to Juan for $200,000, its FMV. Juan and Sarah will be able to close the deal as long as both agrees to terms of the deal.

Answer 26

False

Question 27

The difference between a general power of appointment and a special power of appointment lies in whether a done has the authority to appoint the appointive property to the done or the donee’s estate or the creditors of the done or the donee’s estate.

Answer 27

True

Question 28

An express trust is a legally recognizable entity for state law purposes.

Answer 28

False

Question 29

A living will allows for the health care proxy to commit euthanasia.

Answer 29

False

Question 30

A codicil must be executed in the same manner as a will.

Answer 30

True

Question 31

When a testator dies intestate, the testator did not die with a validly-executed will.

Answer 31

True

Question 32

Holographic wills are recognized in all jurisdictions in this country.

Answer 32

False

Question 33

A probate proceeding occurs when a testator dies intestate.

Answer 33

True

Question 34

Having a validly-executed will is the best way to avoid probate.

Answer 34

True

Question 35

A will is best used for distributing personal property which is not worth an excessive amount of money, such as household and sentimental items.

Answer 35

True

Question 36

A trust is best used for distributing assets and property that is worth a great deal of money, such as stock portfolios and valuable real estate.

Answer 36

False

Question 37

Charitable trusts must have at least one named beneficiary.

Answer 37

False

Question 38

Trustees necessarily have a duty to diversify, despite certain circumstances and conditions set forth by the grantor in the trust document.

Answer 38

False

Question 39

To make it easier for the courts, and as a matter of public policy, the testator’s intent is irrelevant to the interpretation of a will or trust document.

Answer 39

False

Question 40

Charitable trusts, given certain factual situations, can be reformed by the courts and applied for a different purpose, so long as that purpose is substantially similar to the trust’s original purpose and is within the scope of the grantor’s intent.

Answer 40

True

Question 41

A durable power of attorney can terminate before death.

Answer 41

False, a durable power of attorney terminates upon death of the incapacitated.

Question 42

Where the first spouse died and did not utlize his entire estate tax exemption, if a timely estate tax return was filed, the surviving spouse could use, in addition to her own exemption, the unused portion of the first spouse’s exemption

Answer 42

True. You only have to file an estate tax return only if you exceed the exemption, but if filed timely, the suriving spouse can use remaining portion of the exemption.

Question 43

According to the Slayer Statute, there must be a criminal conviction in order to bar someone from inheriting from a decedent.

Answer 43

False, there doesnt have to be a criminal conviction to bar someone from inheriting from a decedent. The determination could be made in probate court.

Question 44

A surviving spouse must file a written instrument declaring renunciation within 7 months of addmission to probate in order to get his/her share of the estate.

Answer 44

True. The surviving spouse will receive 1/3 of the entire estate if the testator leaves a descendent, or ½ of the entire estate if the testator leaves no descendents.

Question 45

If a testator leaves $10k to his niece and nephew and the niece predeceases the testator, the niece’s descendents will get her share.

Answer 45

False, the lapse statute applies only if the named beneficiary in a will is a descendant of the testator. Nieces and nephews are not descendants.

Question 46

If the beneficiaries of a trust believe the trustee is not adequately performing the trustee’s duties, their only remedy is to have the court appoint a new trustee.

Answer 46

False, the beneficiaries are entitled to an accounting of the trust and can file an action in equity for an accounting. They can also file to have the trustee removed and a new successor trustee take his place. A trust will not fail for lack of a trustee as the court can always appoint one.

Question 47

An honorary trust is valid where it is for a legal purpose and the trustee accepts the testator’s wishes, even though there is no beneficiary who can enforce the trust.

Answer 47

True. An honorary trust is an exception to creating a trust with no ascertainable beneficiaries.

Question 48

A codicil has the same requirements as a will.

Answer 48

True. A codicil requires the testator’s signature and two witnesses.

Question 49

In a trust, income that is earned on the principal can remain in the trust or go to beneficiaires.

Answer 49

True

Question 50

Inheritance is considered marital property.

Answer 50

False, inheritance is not marital property, but once it is comingled in marital funds then it becomes marital.

Question 51

A posthumously conceived child will be considered issue if a genetic connection exists between the child and the decedent, and if decedent consented to the conception and to support the child.

Answer 51

True

Question 52

A will that is the product of the testator’s insanity is not valid, and may not be probated.

Answer 52

True

Question 53

If you put all of your assets into a living trust, you can avoid probate.

Answer 53

True

Question 54

Executors of an estate are required to purchase a bond from an insurance company.

Answer 54

True

Question 55

Adopted children cannot inherit from their natural parents.

Answer 55

True

Question 56

In Illinois, a holographic will can be admitted to probate

Answer 56

False

Question 57

Everyone should have an inter vivos trust.

Answer 57

False

Question 58

Only one attesting witness is required to execute a will.

Answer 58

False

Question 59

When written words are used to revoke a will, writing on blank parts of the paper is adequate to revoke.

Answer 59

False

Question 60

In Illinois, a will must be notarized to be considered valid.

Answer 60

False

Question 61

Undue Influence will prevent the execution of a will.

Answer 61

True

Question 62

A will must be burned, teared or destroyed in order to get rid of the will completely.

Answer 62

True

Question 63

It is advantageous to avoid probate.

Answer 63

True

Question 64

The residuary is the remaining property of a person’s estate after bequests and devises have been made.

Answer 64

True

Question 65

A person who creates a trust is known as a beneficiary.

Answer 65

False

Question 66

Under the doctrine of cy pres, the trust will not fail if the settlor indicated a general intention to devote the property to charitable purposes.

Answer 66

True

Question 67

A person can have multiple domiciles at the same time.

Answer 67

False

Question 68

If a trust has two or more beneficiaries, a trustee must act impartially in investing, managing, and distributing the trust property, giving regard to the beneficiaries’ respected interests.

Answer 68

True

Question 69

The Antilapse statute only applies to the decedents of the testator.

Answer 69

True

Question 70

Postnuptial agreements do not require consideration.

Answer 70

False

Question 71

The child a decedent may renounce a will if the child was disinherited.

Answer 71

false

Question 72

A durable power of attorney terminates at the principal’s death.

Answer 72

True

Question 73

A trustee holds property as a fiduciary for one or more beneficiaries.

Answer 73

True

Question 74

When investing in stocks, the trustee has a duty to diversify the account.

Answer 74

True

Question 75

The slayer statute requires a conviction.

Answer 75

False

Question 76

A special needs trust does not allow the beneficiary to remain eligible for Medicaid.

Answer 76

False

Question 77

Generally, Illinois law follows the rule against perpetuities.

Answer 77

False

Question 78

In order to revoke a will, the testator may cross out portions of the will and sign next to the changes.

Answer 78

False. The testator must destroy the will and create a new one with two signatures from witnesses.

Question 79

In Illinois, the estate tax exemption is $4 million.

Answer 79

True

Question 80

In regards to mirror wills, when one will becomes irrevocable the other one does as well.

Answer 80

False. Though they are mirror wills, one will does not become irrevocable just because it’s a mirror will.

Question 81

The burden of proof shifts to the beneficiary when there is a confidential relationship and suspicion, in regards to what the beneficiary gains from the will.

Answer 81

True. The beneficiary must show that there was no undue influence when drafting the will if the beneficiary had a confidential relationship with the testator.

Question 82

All intervivos trusts are revocable.

Answer 82

False, the grantor/settlor has the discretion to make it irrevocable.

Question 83

In Illinois, the anti-lapse statute does not apply to children of the 1st marriage unless the testator adopts those children.

Answer 83

True

Question 84

An intervivos irrevocable trust is a gift, an intervivos revocable trust is a trust.

Answer 84

True

Question 85

Co-trustees and co-executors are always a good idea for a trust that manages a large amount of money.

Answer 85

False. Co-trustees and co-executors can be problematic if they tend to disagree. This is why it is not always a good idea.

Question 86

A capital gains tax is taxed at a lower percentage than income tax.

Answer 86

True

Question 87

adopted children are not treated as natural children through intestacy

Answer 87

False

Question 88

in order to survive a decedent the descendant must survive by at least 5 days in order to inherit.

Answer 88

False

Question 89

a posthumous child of a decedent shall receive the same share of an estate as if the child had been born in the decedent’s lifetime.

Answer 89

True

Question 90

a child born out of wedlock is guaranteed to be the heir of its mother

Answer 90

True

Question 91

in order for a slayer statute to apply there must be a criminal conviction

Answer 91

False

Question 92

in order to create a will you must be 21 years of age and of sound mind

Answer 92

False

Question 93

in order for witnesses to attest to the valid creation of a will they must sign at the bottom of the last page

Answer 93

False

Question 94

a notary is required for a will to be valid in Illinois

Answer 94

False

Question 95

for wills a wife may renounce a will and is automatically entitled to ½ of the estate if there is a descendant

Answer 95

FALSE