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Estates > True False (part 4) > Flashcards

True False (part 4) Flashcards

1
Q

If a fiduciary is self-dealing, a court looking into the loyalty of the trustee, the court will seek no further inquiry into good faith or fairness.

A

True

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2
Q

If a holographic will was written in Illinois, it would be recognized even if the will doesn’t meet the witness requirements.

A

False

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3
Q

In order for a surviving spouse to agree to a valid prenuptial agreement, there must be consideration by the parties.

A

False

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4
Q

Property subject to general power of appointment is taxable by an estate tax while property subject to non general power of appointment are not taxable by an estate tax.

A

True

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5
Q

Trustee has duty to inform the beneficiaries of the existence of the trust AND significant developments pertaining to the administration of the trust.

A

True

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6
Q

A trustee does NOT have a duty to mingle funds of the trust with personal funds.

A

False

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7
Q

If the title to property or its devolution depends upon priority of death and there is no sufficient evidence that the persons have died otherwise than simultaneously and there is no other provision in the will, Illinois courts will follow the 120-hour rule in determining how to dispose of the property.

A

False

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8
Q

The Trustor needs to have the word “Trust” when referring to a trustee.

A

False

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9
Q

If a living grantor sets up revocable trust and beneficiaries seek to see the trust. The beneficiaries cannot see the trust.

A

True

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10
Q

The difference of the principal and income of a trust is the principal is the amount that you put into the trust and income is the amount earned from investments and any additional funds that were transferred to the principal.

A

True

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11
Q

The law of the state where the decedent’s real property is located governs the real property.

A

True

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12
Q

In Illinois, children born after the deceased father using biotechnology and with the father’s consent, are entitled to the same rights as those to a natural child.

A

False

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13
Q

The minimum requirements to make a will is to be at least 21 and is of sound mind and memory.

A

False

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14
Q

The son of the testator was 1 out of 2 attesting witnesses and a beneficiary. Intestate would leave the son with more money than in the will. The son is a valid witness and beneficiary to the will.

A

True

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15
Q

In Illinois, a will is not valid if both witnesses know the testator is signing the will but does not actually see the testator sign the will.

A

False

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16
Q

If a will is not found, it is revoked.

A

True

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17
Q

If a trustor fails to assign a trustee, the trust will fail.

A

False

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18
Q

You can’t create an oral will, but you can create an oral trust

A

True

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19
Q

A spendthrift trust can be terminated by a beneficiary

A

False

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20
Q

A trust set up to educate the grandchildren of the trustor is a charitable trust.

A

False

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21
Q

A special power of appointment is also known as a limited power of appointment.

A

True (it is also called a non-general power of appointment)

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22
Q

In Illinois you only need 1 witness to sign a will if the attorney is the witness.

A

False in IL you need 2 witnesses to sign a will and make it valid

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23
Q

In Illinois, the anti-lapse statute applies to nieces and nephews.

A

False - the anti-lapse statute only applies to descendants of the testator

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24
Q

If the testator has his ex-wife as a beneficiary of his IRA, he can change the beneficiary by will.

A

False - The testator can only change the beneficiary of his IRA by contacting his broker and making the change

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25
Q

In Illinois a testator can cross out a beneficiary of his will to remove the bequest.

A

False - the testator must follow the rule of will attestation when making a change to a will

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26
Q

A trust must be executed the same way as a will in IL.

A

False- all that is needed is capacity and the signature of the grantor

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27
Q

The rule against perpetuities has been abolished in Illinois.

A

True - the RAP is no longer recognized in IL

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28
Q

A witness must see the testator sign the will in order for the will to be valid.

A

False (Conway)

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29
Q

In Illinois a surviving spouse can renounce the will and receive 50% of the decedents probate assets if the decedent does not leave any descendants.

A

True - Illinois Probate Act, the spouse gets a 1/3 if there are descendants of the testator

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30
Q

The current federal estate tax exception for 2016 decedents is 4 million.

A

False - the Illinois estate tax exemption is 4 million

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31
Q

The conditions that incentive trusts might impose can be divided into three broad categories; (1) conditions that encourage the beneficiaries to pursue an education; (2) conditions that provide what might be termed moral incentives and ; (3) conditions designed to encourage beneficiaries to have a productive career.

A

True

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32
Q

Examples of property that passes by nonprobate transfer includes but is not limited to: inter vivos trust, pay-on-death (POD) and transfer-on-death (TOD) contracts, tenancy-in-common-, and life insurance.

A

False, tenancy-in-common is incorrect. Joint tenancy is the correct answer because under the theory of joint tenancy the decedent’s interest vanishes at death. Therefore, the survivor owns the whole property free of the decedent’s participation.

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33
Q

The typical distribution scheme for intestate succession allows the decedent’s relatives to take a share of the intestate estate in the following order: (1) descendants, (2) surviving spouse, and (3) collateral relatives.

A

False. (1) surviving spouse, (2) descendants, (3) collateral relatives.

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34
Q

A power of appointment authorizes an individual to distribute a decedent’s property or estate in a specified manner and is often used for greater flexibility in estate planning.

A

True

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35
Q

Generally, the beneficiary of a nonprobate transfer is liable to the decedent’s probate estate for any claims and statutory allowances that cannot be sufficiently satisfied by the estate

A

True

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36
Q

Generally, the trustee must exercise any discretionary powers in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.

A

True

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37
Q

An irrevocable trust generally can be revoked by the settlor without all of the beneficiaries consent.

A

False. It generally cannot be revoked unless all the beneficiaries consent to its revocation.

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38
Q

A constructive trust is imposed by a court to prevent the unjust enrichment of a person who has wrongfully obtained the title to another’s property.

A

True

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39
Q

A discretionary trust prevents creditors from reaching the trust property in order to satisfy the beneficiary’s debts.

A

False, spendthrift trust.

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40
Q

An honorary trust provides for the care of one or more animals that are alive during the settlor’s lifetime.

A

False, pet trust.

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41
Q

When a person dies without a will, their estate is given an estate plan through the laws of intestate succession.

A

True

42
Q

Debts are included as property in probate proceedings.

A

True

43
Q

A witness is required for a trust by law.

A

False

44
Q

Only a person’s lawyer can keep their original will.

A

False

45
Q

After a person’s death, if their will is not found, it is considered revoked.

A

True

46
Q

The grantor can be the initial trustee of his/her inter vivos trust.

A

True

47
Q

Ademption applies only to specifically named assets and bequests.

A

True

48
Q

A class gift can include named people.

A

False

49
Q

Real property is converted into personal property when it is put in a land trust.

A

True

50
Q

A trust will fail if there is no named trustee.

A

False

51
Q

Surviving spouse has 7 months after the admission of the Will to probate to file a probate action to renounce the Will

A

True

52
Q

Survivorship is a fact that must be proven by a preponderance of the evidence by the party whose claim depends on survivorship.

A

True

53
Q

Disinheritance is possible by a declaration in a will that “X shall receive none of my property”

A

False

54
Q

In IL, posthumous children carry the same legal inheritance rights only if the decedent affirmatively consented to posthumous conception and to the support of any resulting child

A

True

55
Q

A person who intentionally and unjustifiably causes the death of another shall not receive any property, benefit, or other interest by reason of the death

A

True

56
Q

A will is valid where the two subscribing witnesses to a will sign the will or acknowledge their signature on a will, but not in each other’s presence.

A

False

57
Q

Holographic Wills are valid in IL

A

False

58
Q

A Will can be revoked by a subsequent writing executed with Wills act formalities, by a physical act such as destroying, obliterating, and/or burning the Will; or an oral declaration that a Will is revoked.

A

False

59
Q

Any amendments to a Will (Codicil) must follow the same rules as if a new Will is being created.

A

True

60
Q

To prove a trust, the facts must show that the donor intended to act as a trustee or have the property managed by a trustee, not just a sincere desire to make a gift.

A

True

61
Q

A leaves R a 93’ Ford Mustang in his will. However, a year before A dies, A crashes the Mustang in a wreck where the car is completely demolished. It would be correct to say the Mustang has been adeemed.

A

True

62
Q

C can use a living will as transferor to give a lifetime gift of a silver watch to P during the life of C.

A

False

63
Q

J makes a valid will that sets aside $10,000 to give to the American Humane Society, an organization that protects animals. When she dies, the American Humane Society no longer exists. Applying the cy pres doctrine, a court could turn the gift over to People for the Ethical Treatment of Animals.

A

True

64
Q

In the interests of economizing, courts recommend that trustees deposit the trustee’s personal assets into accounts held in trust for beneficiaries.

A

False

65
Q

Trustees have an absolute duty to diversify trust assets that does not depend on circumstances.

A

False

66
Q

An American citizen acting as grantor and not currently facing a lawsuit may validly transfer funds to a Cook Islands trust to avoid future creditors. Assume that this person resides only in the U.S.

A

True

67
Q

An American citizen seeking a self-settled asset protection trust must send his money to another country because no American state permits such trusts.

A

False

68
Q

A probate lawyer can make the following client a valid will. The client is a popular pop singer, M, who wants to execute a will. M’s net worth is $25 Million. M was born in 1999 in Pennsylvania. M now lives in Puerto Rico. M wants to make sure his will complies with the law of Pennsylvania.

A

False

69
Q

A trust where the settlor is the trustee and also the sole beneficiary is per se invalid.

A

True

70
Q

A spendthrift trust is a trust that prohibits the beneficiary’s interest from being assigned and also prevents a creditor from attaching that interest. In other words, it is a trust by the terms of which a valid restraint is imposed on the voluntary or involuntary transfer of the beneficiary’s interest.

A

True

71
Q

A person who executes a will is called a testator.

A

True

72
Q

A person who takes under a will is called a beneficiary.

A

True

73
Q

Avalidly executed will never requires the testator’s signature.

A

False

74
Q

Holographic wills are not recognized anywhere in the United States.

A

False

75
Q

Once a will is created, it is impossible to revoke it

A

False

76
Q

A will can be revoked by physically destroying it.

A

True

77
Q

A will may be invalid for lack of testamentary capacityif the testator is subjected to and controlled byundue influence.

A

True

78
Q

No consideration is required for the creation of a trust.

A

True

79
Q

A trustee must have the legal capacity to deal with the property.

A

True

80
Q

A person who is given a testamentary power of appointment is called a donee.

A

True

81
Q

The three main probate functions are to provide evidence of transfer of title to new owners, protect creditors (by providing payment procedures of the decedent’s debt), and to distribute property to decedent’s beneficiaries.

A

True

82
Q

Assume that a will is denied probate due to attorney’s negligence and the decedent’s estate passes by intestacy contrary to the decedent’s intent. Because the attorney only owns a duty to his or her client, the intended beneficiaries will be barred from bringing a claim against the attorney.

A

False

83
Q

Reciprocal wills can be revoked unilaterally in order to give a surviving spouse an opportunity to provide for future heirs.

A

True

84
Q

Unlike a general power of attorney, a durable power of attorney supersedes grantor’s incapacitation and terminates upon the grantor’s death.

A

True

85
Q

If a surviving spouse renounces a will left by the testator, regardless of the will provisions, the surviving spouse is entitled to receive 1/3 of the entire estate if the testator leaves the descendants and before all the claims against the testator are paid.

A

False

86
Q

When a testator leaves a valid will but the will beneficiary predeceases the testator, and the anti-lapse statute does not apply, the lapsed gift can only pass by intestacy.

A

False

87
Q

Ademption by extinction only applies to general devise.

A

False

88
Q

Life insurance contracts are probate assets because they distribute insured’s proceeds at the time of the insured’s death.

A

False

89
Q

Self-settled protection trusts are permitted in IL as long as they are created without intent to defraud creditors.

A

False

90
Q

Beneficiaries of a trust are entitled to receive a complete copy of terms of the trust, list of assets, and accounting.

A

True

91
Q

Under Illinois Probate Act’s Laws of Intestacy, the decendant’s descendants receive ½ per capita.

A

False

92
Q

Property can pass through probate only under decedent’s will

A

False

93
Q

Life Insurance policy goes through probate

A

False

94
Q

By creating an inter vivos trust, the records become public.

A

False

95
Q

It is always a better choice to have an intervivos trust instead of creating a will.

A

False

96
Q

Illinois’ estate tax exemption amount is $5.45 million

A

False

97
Q

Illinois does not recognize holographic wills.

A

True

98
Q

If the testator only rips off the duplicate of the will, but not the original, the will is not revoked.

A

True

99
Q

Alteration of Codicil has the same formal requirements as a will

A

True

100
Q

No-Contest provision is valid in Illinois.

A

True

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