True False (part 4)

Question 1

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.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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.

Answer 4

True

Question 5

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

Answer 5

True

Question 6

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

Answer 6

False

Question 7

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.

Answer 7

False

Question 8

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

Answer 8

False

Question 9

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

Answer 9

True

Question 10

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.

Answer 10

True

Question 11

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

Answer 11

True

Question 12

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.

Answer 12

False

Question 13

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

Answer 13

False

Question 14

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.

Answer 14

True

Question 15

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.

Answer 15

False

Question 16

If a will is not found, it is revoked.

Answer 16

True

Question 17

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

Answer 17

False

Question 18

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

Answer 18

True

Question 19

A spendthrift trust can be terminated by a beneficiary

Answer 19

False

Question 20

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

Answer 20

False

Question 21

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

Answer 21

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

Question 22

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

Answer 22

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

Question 23

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

Answer 23

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

Question 24

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

Answer 24

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

Question 25

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

Answer 25

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

Question 26

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

Answer 26

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

Question 27

The rule against perpetuities has been abolished in Illinois.

Answer 27

True - the RAP is no longer recognized in IL

Question 28

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

Answer 28

False (Conway)

Question 29

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.

Answer 29

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

Question 30

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

Answer 30

False - the Illinois estate tax exemption is 4 million

Question 31

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.

Answer 31

True

Question 32

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.

Answer 32

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.

Question 33

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.

Answer 33

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

Question 34

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.

Answer 34

True

Question 35

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

Answer 35

True

Question 36

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.

Answer 36

True

Question 37

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

Answer 37

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

Question 38

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.

Answer 38

True

Question 39

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

Answer 39

False, spendthrift trust.

Question 40

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

Answer 40

False, pet trust.

Question 41

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

Answer 41

True

Question 42

Debts are included as property in probate proceedings.

Answer 42

True

Question 43

A witness is required for a trust by law.

Answer 43

False

Question 44

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

Answer 44

False

Question 45

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

Answer 45

True

Question 46

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

Answer 46

True

Question 47

Ademption applies only to specifically named assets and bequests.

Answer 47

True

Question 48

A class gift can include named people.

Answer 48

False

Question 49

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

Answer 49

True

Question 50

A trust will fail if there is no named trustee.

Answer 50

False

Question 51

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

Answer 51

True

Question 52

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

Answer 52

True

Question 53

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

Answer 53

False

Question 54

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

Answer 54

True

Question 55

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

Answer 55

True

Question 56

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.

Answer 56

False

Question 57

Holographic Wills are valid in IL

Answer 57

False

Question 58

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.

Answer 58

False

Question 59

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

Answer 59

True

Question 60

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.

Answer 60

True

Question 61

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.

Answer 61

True

Question 62

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

Answer 62

False

Question 63

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.

Answer 63

True

Question 64

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

Answer 64

False

Question 65

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

Answer 65

False

Question 66

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.

Answer 66

True

Question 67

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

Answer 67

False

Question 68

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.

Answer 68

False

Question 69

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

Answer 69

True

Question 70

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.

Answer 70

True

Question 71

A person who executes a will is called a testator.

Answer 71

True

Question 72

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

Answer 72

True

Question 73

A validly executed will never requires the testator's signature.

Answer 73

False

Question 74

Holographic wills are not recognized anywhere in the United States.

Answer 74

False

Question 75

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

Answer 75

False

Question 76

A will can be revoked by physically destroying it.

Answer 76

True

Question 77

A will may be invalid for lack of testamentary capacity if the testator is subjected to and controlled by undue influence.

Answer 77

True

Question 78

No consideration is required for the creation of a trust.

Answer 78

True

Question 79

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

Answer 79

True

Question 80

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

Answer 80

True

Question 81

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.

Answer 81

True

Question 82

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.

Answer 82

False

Question 83

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

Answer 83

True

Question 84

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

Answer 84

True

Question 85

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.

Answer 85

False

Question 86

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.

Answer 86

False

Question 87

Ademption by extinction only applies to general devise.

Answer 87

False

Question 88

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

Answer 88

False

Question 89

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

Answer 89

False

Question 90

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

Answer 90

True

Question 91

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

Answer 91

False

Question 92

Property can pass through probate only under decedent’s will

Answer 92

False

Question 93

Life Insurance policy goes through probate

Answer 93

False

Question 94

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

Answer 94

False

Question 95

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

Answer 95

False

Question 96

Illinois’ estate tax exemption amount is $5.45 million

Answer 96

False

Question 97

Illinois does not recognize holographic wills.

Answer 97

True

Question 98

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

Answer 98

True

Question 99

Alteration of Codicil has the same formal requirements as a will

Answer 99

True

Question 100

No-Contest provision is valid in Illinois.

Answer 100

True