CH 1 : The Estate Plan & Purpose and Need for a Will

An estate plan encompasses the creation of a person's estate and its maximum growth and conservation during their lifetime, but not its distribution after the person's death.
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Terms in this set (25)
An estate plan encompasses the creation of a person's estate and its maximum growth and conservation during their lifetime, but not its distribution after the person's death.
False
Many Americans die without a will because they procrastinate and then die prematurely.
True
Persons who are entitled by statute to receive any gift from an intestate are called beneficiaries.
False - Heirs
Probate courts closely scrutinize the language of wills to determine the testator's true intention.
True
All wills are ambulatory, meaning that they are subject to change.
True
It is important to update the inventory of one's digital assets, including usernames and passwords, since the information changes frequently.
True
An apportionment clause in a will allocates the tax burden among the residuary estate and the beneficiaries of the will.
True
A testator can choose to disinherit a surviving spouse and surviving children.
False- The spouse cannot be disinherited
A fiduciary is a person who serves in a position of trust and controls and manages property for the benefit of others.
True
All trusts are revocable and may be changed, amended, or canceled by the maker of the trust at any time during their lifetime.
False- Trusts are revovable or irrevoable
A testamentary trust is not contained within a willFalse- Is contained within willA settlor is a person who creates a trust and transfers legal title of their property to one or more persons.TrueAn executor is a person appointed by a probate court to administer a decedent's estate when there is no will.False-a probate court to administer a decedent's estate when there is a will.A transfer-on-death deed is one type of substitute for a will in which the ownership of real or personal property by two or more persons has the right of survivorship.False-The transfer does not take effect until the death of the owner.An inter vivos trust is a trust that is created by a person during their lifetime and becomes operational immediately after the trust is created.TrueA person's estate plan should meet all of their objectives and provide all of the following except:ANSWER C: a. a comfortable retirement income. b. financial protection for the family. c. the elimination of any taxes throughout the implementation of the plan. d. proper custodial care if incompetency or any serious physical or other mental health problem occurs.Every state has laws that set forth all of the following requirements in regard to the creation of a valid will except for which of the following?The will must be holographicA person who dies without a valid will is:InterstateA person who is entitled by statute to receive the real property of a person who has died without a will is:An heirThe best and most appropriate method for a person to preplan their funeral and burial arrangements is to include the plans in a:Letters of instructionsWhich of the following allocates the tax burden among the residuary estate and the beneficiaries of the will?an apportionment clause in a willFiduciaries include all of the following except:ANSWER B: a. guardians who act for minors or incompetent persons. b. probate court judges. c. trustees who act for beneficiaries of a trust. d. personal representatives who act for beneficiaries or heirs.Which of the following is created in a will and becomes operational only after the person's death?d. a testamentary trustWhich of the following is appointed by a probate court to manage the estate of a decedent who dies intestate?an administratorWhich of the following is ownership of real or personal property by two or more persons with the right of survivorship?Joint Tenancy