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Estates > T F (part 6) > Flashcards

T F (part 6) Flashcards

1
Q

Property held in joint tenancy completely avoids probate.

A

True

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2
Q

A spouse may be completely disinherited.

A

False

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3
Q

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

A

False

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4
Q

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.

A

True

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5
Q

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

A

True

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6
Q

Revocable intervivos trusts avoid federal estate tax.

A

False

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7
Q

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.

A

False

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8
Q

Trustees have a duty of impartiality.

A

True

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9
Q

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

A

False

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10
Q

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

A

True

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11
Q

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

A

false: beneficiaries only have an expectancy interest

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12
Q

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

A

false: IL does not recognize common law marriage

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13
Q

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

A

TRUE

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14
Q

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

A

True

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15
Q

A surviving spouse has 9 months to file a probate action

A

false: he/she has 7 months to file

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16
Q

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

A

True

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17
Q

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

A

false: generally thought to not be good practice

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18
Q

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

A

false: no witnesses required for creation of a trust

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19
Q

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

A

True

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20
Q

The estates tax is currently 40%

A

True

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21
Q

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

A

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

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22
Q

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

A

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

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23
Q

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

A

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.

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24
Q

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

A

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

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25
Q

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

A

True

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26
Q

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.

A

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

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27
Q

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

A

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

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28
Q

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

A

False

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29
Q

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.

A

True

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30
Q

An estate can request unsupervised administration also called independent administration.

A

True

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31
Q

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

A

False

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32
Q

Adoptive kids cannot inherit anything from their natural parent.

A

True

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33
Q

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

A

False

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34
Q

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.

A

True

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35
Q

A self-proving clause is required for a valid will

A

False

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36
Q

A divorce can revoke at least part of a will.

A

True

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37
Q

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

A

True

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38
Q

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

A

True

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39
Q

Intestate succession involves searching for property.

A

False

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40
Q

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

A

True

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41
Q

A testamentary trust is created by a contract.

A

False

42
Q

Asset protection trusts are usually legal.

A

True

43
Q

Mental capacity is required to make a valid will.

A

True

44
Q

A husband cannot disinherit his wife entirely in a will

A

True

45
Q

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.

A

True

46
Q

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

A

False

47
Q

Holographic wills are written by the hand of the testator.

A

True

48
Q

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

A

True

49
Q

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

A

True

50
Q

A trustee has fiduciary duties.

A

True

51
Q

Trusts in general have to be in writing.

A

True

52
Q

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.

A

False

53
Q

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

A

False

54
Q

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.

A

True

55
Q

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

A

False

56
Q

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

A

True

57
Q

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

A

False

58
Q

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

A

False

59
Q

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

A

False

60
Q

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.

A

False

61
Q

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.

A

False

62
Q

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

A

False

63
Q

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

A

False

64
Q

Illinois Courts interpret the Illinois Probate Act with “strict compliance.”

A

False

65
Q

The lifetime gift exemption is 5.45 million dollars.

A

True

66
Q

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

A

True

67
Q

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

A

False

68
Q

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

A

True

69
Q

A declaration of trust must be in writing.

A

False

70
Q

A deed of trust must be in writing.

A

False

71
Q

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

A

False

72
Q

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

A

True

73
Q

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

A

True

74
Q

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

A

False

75
Q

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.

A

True

76
Q

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.

A

False

77
Q

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

A

False

78
Q

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. .

A

True

79
Q

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

A

False

80
Q

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.

A

True

81
Q

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

A

False

82
Q

Decanting means moving the funds of one trust to another.

A

True

83
Q

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

A

False

84
Q

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

A

False

85
Q

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

A

False

86
Q

Illinois recognizes common law marriage.

A

False

87
Q

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.

A

False

88
Q

Inter vivos trusts are trusts made after death by will.

A

False

89
Q

Illinois estate tax exemption is 5.45 million dollars in 2016.

A

False

90
Q

Trusts avoid probate.

A

True

91
Q

There are no tax benefits for revokable trusts.

A

True

92
Q

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

A

True

93
Q

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

A

False

94
Q

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

A

True

95
Q

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

A

False

96
Q

You staple together a will AFTER your client signs it.

A

False

97
Q

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

A

True

98
Q

A beneficiary does not hold equitable title.

A

False

99
Q

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.

A

True

100
Q

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

A

True

Estates (7 decks)

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