Test Bank Chapter 31 Wills, Advanced Directives, and Trusts

Business Law with UCC Applications, 15e (Sukys)

Chapter 31 Wills, Advanced Directives, and Trusts

1) All probate rules are determined by Uniform Probate Code.

Difficulty: 2 Medium

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

2) Joseph and Susan are shareholders in a closely held corporation. If nothing was written about this, when Susan dies, all the corporate property will go to Joseph.

Difficulty: 3 Hard

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

3) Personal property that is left by will is called a devise, except in states that have adopted the Uniform Probate Code.

Difficulty: 1 Easy

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

4) A durable power of attorney is a document authorizing another person to act on one's behalf in the event of one's incapacity, or to become effective if one is incapacitated.

Difficulty: 2 Medium

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

5) Every will must be in writing to be valid and enforceable.

Difficulty: 1 Easy

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

6) Rose, who is 83 years old and on a fixed income, tells Gina, her attorney daughter, "I need to go see an attorney and do-up a will, but I don't have the money." Gina says, "Oh, in this state you can create a valid will as long as it's all in your own handwriting." If Rose decides to take her daughter's advice, she will have created a holographic will.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

7) With the exception of a holographic will, a will must be in writing, signed by the testator, and attested to in the testator's presence by the number of witnesses established by state law.

Difficulty: 1 Easy

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

8) At the time of the execution of her will, there was a question as to whether Juanita was suffering from Alzheimer's. Some of her friends said yes, some said no. Juanita's son Jose had observed his mother's failing health and mental illness over a the last few years. He once remarked to his wife that when he visited his mom, she asked him who he was when he was sitting next to her. A few minutes later, she was hugging him and conversing about all the memories they had when they lived in the 'old country.' Juanita created a holographic as her own will and no one contested it. When the matter went before the probate judge, he disallowed the will saying, "The testatrix did not have a sound mind and memory when she was writing her will." Therefore, he ruled her will was invalid. The judge is correct.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

9) A will must be typewritten and must be under seal.

Difficulty: 1 Easy

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

10) Homer is physically unable to sign his will. While he is heavily sedated and sleeping on a few feet away, Jane signs the will for him in the presence of a few friends. The next morning, Homer passes away. Jane wants to probate the will because she is the sole beneficiary. The will is valid.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

11) The Opening Case of Winkfield v. Children's Hospital and Research Center involved the question under the Free Exercise Clause of the First Amendment.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

12) If Allan is a witness to his wife Cindy's will, Allan will be able to inherit under Cindy's will—unless there are other witnesses.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

13) Karl signs and dates a handwritten will without a witness. Such a will is called a nuncupative will.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

14) Nuncupative wills are only used to bequest real property.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

15) The Classic Case, Windsor v. United States (2013), involved the constitutionality of the Defense of Marriage Act (DOMA).

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Analyze

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

16) John executed a will over 8 years ago and wants to make a small change to the will. He will most likely ask an attorney for a codicil.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-05 List the different methods of revoking or changing a will.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

17) A surviving spouse is legally bound to accept the amount provided in the will even if he does not like the provisions of the deceased spouse's will.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-05 List the different methods of revoking or changing a will.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

18) In most states, a child who can prove that she was intentionally left out of her parents' will receives the same share that she would have received had her parents died without a will.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

19) Any person who has the last name of the testator is allowed to contest a will.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

20) If a person dies without a valid will, they are said to have died testate.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Remember

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

21) Grandmother Smith is concerned about having an incapacitating illness that will prevent her from managing her finances. Grandmother Smith should execute a(n):

A) power of attorney.

B) advance directive.

C) agency proxy.

D) durable power of attorney.

Difficulty: 2 Medium

Topic: Sources and Relevance of Probate Law

Learning Objective: 31-01 Give details about the sources of probate law and its relevance to business entities.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

22) Chandra is an invalid and, therefore, she cannot put her signature on her will. Her friend Nina signs the will for her. When Nina signs on behalf of Chandra, there is no one else in the house. Is the will valid?

A) Yes, since Chandra was present during the time the will was signed.

B) No, since she did not date it.

C) Yes, since she is presumed to be mentally competent.

D) No, since there were no witnesses present during the signing of the will.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

23) Darius wrote a will leaving his property in equal shares "to all my friends" which he dated and signed. Is the will valid?

A) Yes, most likely, since the document expresses Darius' intent.

B) Probably not, since the language of the will is ambiguous.

C) Yes, since he has dated and signed it.

D) No, since there is a numerical limit to the number of legal heirs.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

24) While in combat, a soldier, in front of four witnesses, made an oral will in which he distributed personal property. Such a will was:

A) a nuncupative will, which is not valid in most states.

B) a nuncupative will, which is valid in all states.

C) a valid holographic will.

D) intestate.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

25) Dai executes a will and provides copies to all her children. Later, she prepares a different will and destroys the first original will, but not the copies. Has the original will been canceled?

A) No, since the copies still exist.

B) Yes, even though copies exist, Dai destroyed the original.

C) No, since delivering the copies prevents Dai from later changing her will.

D) Yes, since the last will is always the one probated.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.; 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

26) Ruby's husband Caleb dies with title to the family home in his name. Caleb's creditors want to force the sale of the home to satisfy the unpaid debts. May Ruby prevent this sale?

A) Not if the debts are legitimate.

B) Yes, based on the homestead exemption.

C) No, if the amount of debts exceeds the fair market value of the home.

D) Yes, with the forced share.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

27) Lucy's stepfather, Zed, passed away intestate when she was 19. Zed had never adopted Lucy, but they were much closer than most fathers and daughters. As a stepdaughter:

A) Lucy's legal rights of inheritance are the same as those of adopted children.

B) Lucy's legal rights of inheritance are the same as those of Zed's natural children.

C) Lucy has a limited right of inheritance, since she was not adopted.

D) Lucy has no right of inheritance, since she was not adopted.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

28) Mathew made his will, leaving his estate to his only son, Andrew. Two years later, he felt inclined to leave $100,000 toward a new old age home under construction in his locality. Mathew may make this bequest:

A) by executing a codicil.

B) by adding the bequest to the original will and initialing it.

C) by writing the bequest on a separate sheet and affixing it to the original.

D) by executing a durable power of attorney.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-05 List the different methods of revoking or changing a will.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

29) Carl has his lawyer prepare his will. Wanting to make a few minor changes, Carl places some handwritten words in the margins, initials them, and scratches out words in the typed text. Carl's changes:

A) create a codicil.

B) create a new will.

C) amend the typed will.

D) are legally ineffective.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-05 List the different methods of revoking or changing a will.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

30) A nonprofit organization, Save the Tigers, wants to contest Anna's will, since she promised to leave property to them at the annual Charity Banquet. Save the Tigers has:

A) a right to submit evidence that Anna was of unsound mind.

B) a right to submit evidence that Anna was subjected to undue influence.

C) no right to contest the will.

D) no right to contest the will, but may challenge the ownership of the property in question.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-06 Outline the three grounds for contesting a will.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

31) Trudy had been a constant companion of Gertrude. When Gertrude died, she left Trudy $10,000 in her will. On what basis might other heirs best attempt to challenge the $10,000 gift?

A) Undue influence

B) Unsound mind

C) Improper heir-ship

D) Improper execution

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-06 Outline the three grounds for contesting a will.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

32) Tom and Megan die in a plane crash. After their marriage, they had been jointly holding property. What happens to their property?

A) Tom's heirs inherit the whole property.

B) The state escheats the property.

C) Megan's heirs inherit the whole property.

D) The property is distributed equally between the heirs.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

33) If Tano dies without a will, he dies:

A) testate.

B) intestate.

C) interstate.

D) testator.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

34) Morgan, a resident of New York, had an antique car collection garaged in New Jersey. The car titles were kept in a safety deposit box of a bank in Delaware. If Morgan dies intestate, the law of which state will determine the ownership of the cars?

A) New Jersey

B) New York

C) Delaware

D) New Jersey, New York, and Delaware

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Apply

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

35) Mack, the father of two children, dies intestate. Under a typical statute, the rights of his wife would include entitlement to:

A) one-half of the estate.

B) the entire estate.

C) one-half of the remainder of the estate plus $200,000.

D) no part of the estate.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Analyze

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

36) Pepe dies without a will leaving a brother, a cousin, and an uncle as his only surviving relatives. Who is the "next of kin"?

A) The uncle

B) The cousin

C) The brother

D) This must be determined by the state law where Pepe died.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Apply

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

37) Frisco and his wife, Esperanza, were killed simultaneously in an auto accident. Frisco had life insurance naming Esperanza as the beneficiary. Frisco's will left all his property to a charity, and Esperanza's will left all of her property to her mother, Verdad. Who is entitled to the insurance proceeds under the Uniform Simultaneous Death Act?

A) Verdad

B) No one, since Esperanza is deceased.

C) This is determined by intestate succession.

D) The charity

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

38) In states that have not adopted the Uniform Probate Code, the person named in a will to carry out the terms in it is called a(n):

A) administrator or administratrix.

B) executor or executrix.

C) settler.

D) testator or testatrix.

Difficulty: 2 Medium

Topic: The Law of Wills

Learning Objective: 31-08 Write down the steps to be taken by an executor or administrator in settling an estate.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

39) In 1990, in the case known as ________, the United States Supreme Court ruled that the right to die was guaranteed by the due process clause of the United States Constitution.

A) Cruzon v. Director, Missouri Department of Health

B) Roe v. Wade

C) Gonzalez, Attorney General v. Oregon

D) Windsor v. United States

Difficulty: 2 Medium

Topic: Advanced Directives

Learning Objective: 31-09 Discuss the types and purposes of advance directives.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

40) A trust that is created by a will is called a(n):

A) conveyance in trust.

B) declaration of trust.

C) intervivos trust.

D) testamentary trust.

Difficulty: 2 Medium

Topic: The Law of Trusts

Learning Objective: 31-10 Differentiate among the various types of trusts and determine when they might be used.

Bloom's: Understand

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

41) Charles creates a revocable living trust. What are the typical advantages of creating a revocable living trust?

A) Estate tax advantages

B) Management advantages

C) Both estate and income tax advantages

D) Management advantages as well as estate and income tax advantages

Difficulty: 3 Hard

Topic: The Law of Trusts

Learning Objective: 31-10 Differentiate among the various types of trusts and determine when they might be used.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

42) Forty-year-old Kelsey, a homeowner with a wife and two children, made out his will the day he was institutionalized for alcohol abuse. When he drew up the will, Kelsey was experiencing severe withdrawal symptoms, including impaired memory, insomnia, and tremors. Describe how a court would evaluate whether Kelsey was of sound mind when he made out his will.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

43) John liked the language of his grandfather's will and made a copy of it, and handwrote in some changes to names and dates and signed this copy in the presence of witnesses. Discuss if John's will is valid.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

44) Whitney signs her will and then realizes that she needs witnesses. She finds two friends, tells them the signature is hers and the two friends sign the document. Discuss if this method is valid.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

45) Amos was divorced and dying in Mercy Hospital when he executed his will in the presence of his mother, daughter and two nurses, all of whom signed as witnesses. The will left all of Amos's property to his mother and daughter and left nothing to Amos's son. The son challenged the validity of Amos's will. Discuss the legal issues.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-03 Determine whether a person who makes a will has the capacity to do so.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

46) Colleen disinherited her husband Glen and left her entire estate to her church. Glen desires to challenge this distribution. Discuss Glen's likely success.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

47) Gracie was a single mother of ten children, three of whom were adopted, and two of whom were stepchildren. One day, Gracie was struck by a car and killed. She died intestate. Will all her children inherit from her? Explain.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-04 Explain how the Supreme Court's ruling involving DOMA has affected the law.; 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

48) Brad and Sally, a married couple, died at the same time in a tornado in a state that has adopted the Uniform Simultaneous Death Act. Brad's will left his property to Sally and then to his children if she were to die before him. Sally's will left her property to Brad and then to charity. Discuss the distribution of their property.

Difficulty: 3 Hard

Topic: The Law of Wills

Learning Objective: 31-07 Describe who will inherit the property of someone who dies without a will.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

49) Fritz is having his will prepared and also wants to prepare other advance directives. Discuss the typical advance directives and why they are prepared.

Difficulty: 3 Hard

Topic: Advanced Directives

Learning Objective: 31-09 Discuss the types and purposes of advance directives.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

50) Teresa is concerned that her children will waste their inheritance and owe many creditors who will take any unspent inheritance. Discuss how Teresa may allow the children to inherit and yet prevent her fears from becoming reality.

Difficulty: 3 Hard

Topic: The Law of Trusts

Learning Objective: 31-10 Differentiate among the various types of trusts and determine when they might be used.

Bloom's: Analyze

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation

51) Santos created an irrevocable living trust for her stepdaughter. In her later years, she became angry with her stepdaughter and sought to rescind the trust. Will she be able to do so? Explain.

Difficulty: 3 Hard

Topic: The Law of Trusts

Learning Objective: 31-10 Differentiate among the various types of trusts and determine when they might be used.

Bloom's: Evaluate

AACSB: Analytical Thinking

Accessibility: Keyboard Navigation