Question

Multiple Choice Questions
1. Which of the following is not a true statement?
a. Testate refers to a person having a valid will.
b. The laws of descent convey personal property if an individual dies without a valid will.
c. Intestate refers to a person having no valid will.
d. A specific legacy is a gift of personal property that is specifically identified.

2. Why might real estate be omitted from an inventory of estate property?
a. Real estate is subject to a separate inheritance tax.
b. State laws prohibit real property from being conveyed by an estate.
c. State laws require a separate listing of all real estate.
d. In some states, depending on the ownership, real estate is considered to be conveyed directly to a beneficiary at the time of death.

3. What is the purpose of the laws of distribution?
a. To guide the distribution of personal property when an individual dies without a will.
b. To verify the legality of a will, especially an oral will.
c. To guide the distribution of real property when an individual dies without a will.
d. To outline the functions of the executor of an estate.

4. A deceased individual owned a bond. Which of the following is included in the estate principal?
a. All interest collected prior to distributing the bonds to a beneficiary is considered part of the estate principal.
b. Only the first cash payment after death is included in the estate principal.
c. Interest that was not collected prior to death is excluded from the estate principal.
d. Interest earned prior to death is considered part of the estate principal even if received after death.

5. Which of the following is not a goal of probate laws?
a. To gather and preserve all of the decedent's property.
b. To ensure that each individual produces a valid will.
c. To discover the decedent's intent for property held at death and then to follow those wishes.
d. To carry out an orderly and fair settlement of all debts and distribution of property.

6. How are claims against a decedent's estate discovered by an executor?
a. Public notice must be printed in an appropriate newspaper to alert all possible claimants.
b. The executor waits for nine months until all possible bills have been received.
c. The executor directly contacts all companies that the decedent did business with.
d. Claims the estate is to pay are limited to all of the bills received but not paid prior to the date of death.

7. Why are claims against an estate put into an order of priority?
a. To help the executor determine the due date for each claim.
b. To determine which claims are to be paid if funds are insufficient to pay all claims.
c. To assist in determining which specific assets are to be used to satisfy these claims.
d. To list the claims in order of age so that the oldest can be paid first.

8. Which of the following claims against an estate does not have priority?
a. Funeral expenses because the amounts incurred are usually at the discretion of family members.
b. Medical expenses associated with the decedent's last illness.
c. The costs of administering the estate.
d. Unpaid rent on the decedent's home if not paid for the three months immediately prior to death.

9. How does a devise differ from a legacy?
a. A devise is a gift of money and a legacy is a nonmonetary gift.
b. A devise is a gift to an individual and a legacy is a gift to a charity or other organization.
c. A devise is a gift of real property and a legacy is a gift of personal property.
d. A devise is a gift made prior to death and a legacy is a gift made at death.

10. What is the homestead allowance?
a. A reduction of $20,000 in estate assets prior to computing the amount of federal estate taxes.
b. The amount of property conveyed in a will to a surviving spouse.
c. An allotment from an estate to a surviving spouse and/or minor and dependent children before any claims are paid.
d. A decrease in the value of property on which state inheritance taxes are assessed. The reduction is equal to the value of property conveyed to a surviving spouse.



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  • CreatedOctober 04, 2014
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