Multiply Choice
1. A decedent’s will provided that the estate was to be divided among the decedent’s issue per capita and not per stirpes. If there are two surviving children and three grandchildren who are children of a predeceased child at the time the will is probated, how will the estate be divided?
(a) 1⁄2 to each surviving child
(b) 1⁄3 to each surviving child and 1⁄9 to each grandchild
(c) 1⁄4 to each surviving child and 1⁄6 to each grandchild
(d) 1⁄5 to each surviving child and grandchild

2. A personal representative of an estate would breach her fiduciary duties if she:
(a) Combined personal funds with funds of the estate so that both could purchase Treasury bills
(b) Represented the estate in a lawsuit brought against it by a disgruntled relative of the decedent
(c) Distributed property in satisfaction of the decedent’s debts
(d) Engaged a non-CPA to prepare the records for the estate’s final accounting

3. Blake tells his client that there are five good reasons to set up a trust. Which of the following is not a good reason?
(a) To pay his grandchildren’s college tuition if they go to the same college he attended
(b) To save money, since a trust is cheaper than a will
(c) To make sure the money is properly invested
(d) To avoid probate
(e) To safeguard his privacy

4. A(n) ---------- power of attorney becomes effective when signed. A(n) power of attorney becomes effective at a later date. A(n) ----------- power of attorney is valid even if the principal becomes incapacitated.
(a) Durable, springing, immediate
(b) Springing, durable, durable
(c) Immediate, springing, durable
(d) Immediate, durable, durable

5. If Chip buys an insurance policy covering his daughter Sarah’s apartment, then ---------- is the insured, ---------- is the beneficiary, and ---------- is the owner.
(a) Sarah, Sarah, Sarah,
(b) Chip, Chip, Chip
(c) Sarah, Chip, Chip
(d) Sarah, Sarah, Chip