T F (part 6)

Question 1

Property held in joint tenancy completely avoids probate.

Answer 1

True

Question 2

A spouse may be completely disinherited.

Answer 2

False

Question 3

The current amount exempt from federal estate tax is $5,550,000.

Answer 3

False

Question 4

If a decedent domiciled in Illinois dies intestate, survived only by a spouse and one child, the spouse and child will split the descendants estate equally.

Answer 4

True

Question 5

Under Illinois intestacy law, a posthumous child, in utero at the time of the decedent’s death, qualifies as a descendant.

Answer 5

True

Question 6

Revocable intervivos trusts avoid federal estate tax.

Answer 6

False

Question 7

A lifetime gift by a testator is considered an advancement if all of beneficiaries named in the testator’s will agree that the gift was an advancement.

Answer 7

False

Question 8

Trustees have a duty of impartiality.

Answer 8

True

Question 9

Spray trusts were invented by the famous estate attorney Albert Spray.

Answer 9

False

Question 10

A grantor can be the trustee for his/her own intervivos trust?

Answer 10

True

Question 11

Beneficiaries under a trust have legal, enforceable rights under that trust.

Answer 11

false: beneficiaries only have an expectancy interest

Question 12

Under IL common law, unmarried persons living together have inheritance rights.

Answer 12

false: IL does not recognize common law marriage

Question 13

A spray trust allows a trustee to decide how much is distributed and when.

Answer 13

TRUE

Question 14

If a decedent was in debt, a creditor’s rights are cut off 6 months after the decedent’s death.

Answer 14

True

Question 15

A surviving spouse has 9 months to file a probate action

Answer 15

false: he/she has 7 months to file

Question 16

Under IL law, demonstrating substantial compliance with the statute can suffice.

Answer 16

True

Question 17

A joint will is generally thought tobe good practice, as it allows one will to cover both a husband and a wife.

Answer 17

false: generally thought to not be good practice

Question 18

At least two witnesses are required in order for a valid trust be created.

Answer 18

false: no witnesses required for creation of a trust

Question 19

A codocil is a separate document that must be signed and attested in order to be incorporated into a will.

Answer 19

True

Question 20

The estates tax is currently 40%

Answer 20

True

Question 21

the Illinois Probate act: 5/2-3 deals with Simultaneous deaths

Answer 21

False, Illinois probate act 5/2-3 deals with Posthumous children

Question 22

the state attorney general is the only one that can enforce a trust.

Answer 22

False, the IRS can also enforce a trust, although it is done seldom

Question 23

in Illinois a beneficiary may also be a witness to a will

Answer 23

True, in Illinois a beneficiary is allowed to witness a will, but there must be another witness (two witnesses that do not benefit). If there is no other disinterested witness, the beneficiary can still be a witness but will lose out on his/her benefit.

Question 24

probate can be avoided if assets are worth less than $150,000

Answer 24

False, the assets must be worth less than $100,000

Question 25

under 755 ILCS 5/2-1, if there are no descendants, the surviving spouse gets all.

Answer 25

True

Question 26

a total return trust gives a payout of a fixed income, but if the trust earns more than expected, the trustee must payout extra amount.

Answer 26

False, regardless of the amount the trust makes, the payout will still be fixed.

Question 27

in the state of Illinois, a trust can be created for pets

Answer 27

760 ILCS 5/15-2, a trust can be created for domestic or pet animals.

Question 28

People generally put all their property in their trusts, so if the property is not in their trust it does not go to probate.

Answer 28

False

Question 29

Jeff lives in Chicago, Illinois and owns a condo in Miami, Florida. If he transfers the title of his Florida condo to an inter vivos trust his estate will be probated in Illinois.

Answer 29

True

Question 30

An estate can request unsupervised administration also called independent administration.

Answer 30

True

Question 31

One disadvantage of putting assets into an inter vivos trust is having the assets put in a public record.

Answer 31

False

Question 32

Adoptive kids cannot inherit anything from their natural parent.

Answer 32

True

Question 33

If a parent names a guardian for their children in a will the court can decide to appoint a guardian of their choice.

Answer 33

False

Question 34

Nancy had her best friend Cynthia and neighbor Tom witness her properly execute a will. Cynthia and Tom witnessed one another sign the will and both witnessed Nancy sign her will. The will was properly executed.

Answer 34

True

Question 35

A self-proving clause is required for a valid will

Answer 35

False

Question 36

A divorce can revoke at least part of a will.

Answer 36

True

Question 37

“I leave $100 to cousin” is an example of a general gift.

Answer 37

True

Question 38

If a husband dies at the same time as his wife, his property is distributed as if he predeceased his wife.

Answer 38

True

Question 39

Intestate succession involves searching for property.

Answer 39

False

Question 40

A person who is to receive the corpus of a trust upon its termination is called a remainderman.

Answer 40

True

Question 41

A testamentary trust is created by a contract.

Answer 41

False

Question 42

Asset protection trusts are usually legal.

Answer 42

True

Question 43

Mental capacity is required to make a valid will.

Answer 43

True

Question 44

A husband cannot disinherit his wife entirely in a will

Answer 44

True

Question 45

A testator can make a condition requiring a child to marry within a specific religious group and disinherit a child if the condition is not met.

Answer 45

True

Question 46

In Illinois, a spouse may renounce a will and if the spouse has no children he or she will receive 1/3.

Answer 46

False

Question 47

Holographic wills are written by the hand of the testator.

Answer 47

True

Question 48

A will may be revoked by altering, eliminating, destroying, obliterating, or burning the will by the testator?

Answer 48

True

Question 49

In Illinois, it is permissible for an attorney to represent both husband and wife in estate planning?

Answer 49

True

Question 50

A trustee has fiduciary duties.

Answer 50

True

Question 51

Trusts in general have to be in writing.

Answer 51

True

Question 52

A couple purchased a piece of property and held it in joint tenancy. If they each want to ensure that the that their property interest goes to their partner when they died they will need to amend their wills to include the property.

Answer 52

False

Question 53

A man marries and purchases a life insurance policy with his wife as the listed beneficiary. After having one child, the man and his wife divorce. The man makes a valid will leaving his insurance policy to his child. When the man dies the policy will go to the children

Answer 53

False

Question 54

A testator to creates a valid will indicating that the profits of his various properties should be distributed to his wife during her life time. The will indicates that the properties themself are to be distibuted to testator's children after the death of his wife. The testator's will creates a life estate.

Answer 54

True

Question 55

An individual is domiciled in Illinois and owns real estate in Texas. The individual's entire estate can be probated in Illinois.

Answer 55

False

Question 56

An individual can avoid ancillary administration by transfering real property into a trust.

Answer 56

True

Question 57

If a will does not designate an executor then the estate will proceed though probabte without an executor.

Answer 57

False

Question 58

There is no advantage to having probate estate instead of avoiding probate by placing property in trust.

Answer 58

False

Question 59

Attorney client privilege does not allow lawyers to disclose confidential information regarding estate planning a client's spouse under any circumstances.

Answer 59

False

Question 60

A woman dies without a valid will. Under the Illinois Probate Act, her suriving spouse is entiled to 75% of the estate with the remaining 25% going to the woman's children.

Answer 60

False

Question 61

A senile law professor wishes to disinherit his wife. He determines the best way to ensure that the wife does not get any more of his money is to ensure that she does not survive him. The professor shares his thoughts with his class. The professor's wife's dead body is discovered soon afterwards. The professor is a suspect in the investigation of her death, but is never convicted. The wife had a valid will leaving her entire estate to the Professor. The probabte court will decline to hear any challenge from to the wife's will based on the Slayer Rule because the Professor has never received a criminal conviction for killing his wife.

Answer 61

False

Question 62

Courts tend to rule that a trust will fail for a lack of a trustee.

Answer 62

False

Question 63

Parties to a prenuptial agreement do not have to disclose all of their assets to one another.

Answer 63

False

Question 64

Illinois Courts interpret the Illinois Probate Act with "strict compliance."

Answer 64

False

Question 65

The lifetime gift exemption is 5.45 million dollars.

Answer 65

True

Question 66

If a trust does not specify what happens to the trust principal, the trust principal goes to he grantor's estate. 

Answer 66

True

Question 67

A grantor can form a valid trust by naming himself as sole trustee and sole beneficiary.

Answer 67

False

Question 68

ERISA preempts state law regarding the disposition of retirement accounts governed under ERISA.

Answer 68

True

Question 69

A declaration of trust must be in writing.

Answer 69

False

Question 70

A deed of trust must be in writing.

Answer 70

False

Question 71

In Illinois, a will must have only one witness at execution.

Answer 71

False

Question 72

Inter vivos trusts, created during marriage and controlled by the deceased spouse are considered part of the estate.

Answer 72

True

Question 73

The Antilapse statue applies to only inheritances by direct decedents of the decedent.

Answer 73

True

Question 74

A lawyer can never benefit from a will which they’ve drafted for a client.

Answer 74

False

Question 75

A trust is a fiduciary relationship in which a trustee holds legal title to property for the security of the settlor and benefit of the beneficiary.

Answer 75

True

Question 76

The best way to transfer out-of-state real property is by setting up a trust in the state in which you reside and naming the out-of-state property as an asset.

Answer 76

False

Question 77

The Slayer Statute prohibits a murderer from acquiring any inheritance whatsoever.

Answer 77

False

Question 78

Assume that a joint tenant murders their cotenant; the Slayer Statue provides that the murderer’s share of the joint tenancy is retained by the murderer, while the victim’s share is given to the survivors of the victim. .

Answer 78

True

Question 79

Under the law, statutes specifically designed to protect heirs from intentional disinheritance apply to spouses and children.

Answer 79

False

Question 80

If a surviving spouse renounces a will, he/she is entitled to either one-third or one-half depending on whether there are surviving descendants.

Answer 80

True

Question 81

Prenuptials require separate party representation, but postnuptial don’t because the parties are already married.

Answer 81

False

Question 82

Decanting means moving the funds of one trust to another.

Answer 82

True

Question 83

A court can apply cy pres if the purpose is illegal and there is no charitable intent.

Answer 83

False

Question 84

Mother dies with no will. She labels all her valuables to go to her daughter. The daughter is entitled to these items.

Answer 84

False

Question 85

Having a tennat with right of first refusal precludes anyone else from making offers.

Answer 85

False

Question 86

Illinois recognizes common law marriage.

Answer 86

False

Question 87

If the trustee only invests in one stock, the beneficiaries can sue for lack of diversity if the stock goes from $50 a share to $150 a share.

Answer 87

False

Question 88

Inter vivos trusts are trusts made after death by will.

Answer 88

False

Question 89

Illinois estate tax exemption is 5.45 million dollars in 2016.

Answer 89

False

Question 90

Trusts avoid probate.

Answer 90

True

Question 91

There are no tax benefits for revokable trusts.

Answer 91

True

Question 92

A married couple can each transmit 5.45 million dollars free of estate taxes.

Answer 92

True

Question 93

By placing your accents into a trust you don't avoid going through probate.

Answer 93

False

Question 94

A joint will is one will signed that covers both the husband and the wife.

Answer 94

True

Question 95

It is in your best interest to make a joint will with your spouse.

Answer 95

False

Question 96

You staple together a will AFTER your client signs it.

Answer 96

False

Question 97

A married couple can gift up to 28 thousand dollars together a year.

Answer 97

True

Question 98

A beneficiary does not hold equitable title.

Answer 98

False

Question 99

A pour-over will is when a testator has executoed an intervivos trust and then prepares a will saying all my assets should go into trust.

Answer 99

True

Question 100

The principle is the amount originally received, plus capital gains and less debts, expenses, and capital losses.

Answer 100

True