Question 1

1 / 1 pts

In a typical estate with both real and personal property, the personal representative and the probate referee both work on the Inventory and Appraisal.

True

Correct.

False

Question 2

1 / 1 pts

Tenancy in common is the ownership of real or personal property by two or more persons with the right of survivorship.

True

False

Correct.

Unanswered

Question 3

0 / 1 pts

In order to execute a will, the testator must be at least 18 years old and have a sound mind.

True

False

Unanswered

Question 4

0 / 1 pts

Larry works and puts $3,500 into an IRA (Individual Retirement Account) each year. Larry has already paid income tax on the funds and will pay no income tax at the time he retires and withdraws money from the account.

True

False

Unanswered

Question 5

0 / 1 pts

People who must be given notice of the start of probate administration include the deceased person's spouse and relatives, recipients of a gift under the decedent's will, and any creditors.

True

False

Unanswered

Question 6

0 / 1 pts

Before the decedent's estate can be administered in probate court, notice to the interested parties will be given in an ad placed in the newspaper and also by mail.

True

False

Unanswered

Question 7

0 / 1 pts

For a valid will, the will must be in writing, signed by the testator, and attested to by at least two disinterested witnesses.

True

False

Unanswered

Question 8

0 / 1 pts

The Probate Court which oversees the administration of decedent's estates, when the decedent leaves a will or when the decedent dies without a will, will also supervise assets held in a living trust.

True

False

Unanswered

Question 9

0 / 1 pts

"Issue" means the descendants of a person.

True

False

Unanswered

Question 10

0 / 1 pts

Decedents may authorize their personal representatives to access digital assets and social media accounts in their will and other estate-planning documents.

True

False

Unanswered

Question 11

0 / 1 pts

The administration of a living trust following the death of one or both trustors will generally be handled outside of court.

True

False

Unanswered

Question 12

0 / 1 pts

In a typical family estate plan, once the first trustor (spouse) passes, the surviving trustor (spouse) will be able to manage and spend freely the assets in each of the sub-trusts of the trust.

True

False

Unanswered

Question 13

0 / 1 pts

When completing the estate plan, trustor(s) will sign and record a deed to transfer all of their assets to the trustee(s) of the living trust.

True

False

Unanswered

Question 14

0 / 1 pts

The parties to a living trust are the trustors, trustees, and beneficiaries.

True

False

Unanswered

Question 15

0 / 1 pts

A living trust is also known as an intervivos and irrevocable trust.

True

False

Unanswered

Question 16

0 / 9 pts

Amendment to a will

Will that identifies the trustee of the living trust as the beneficiary

Future interest associated with a fee simmple subject to condition subsequent

The testator in a will leaves his coin collection to his grandson. What type of gift has been created?

After gifting items of personal property and cash, Margaret leaves the rest of her estate to the local theater group. What type of gift has the theater group received?

What do you call the recipient of a gift under a will?

What does a land owner hold if he or she has the maximum rights available under law?

What clause do the witnesses to a will sign?

If there is an intestate estate, what is the personal representative called?

Unanswered

Question 17

0 / 8 pts

What type of bank account identifies the person who should receive it when the owner dies?

Harris and Wilma are married and live in Connecticut. They own a house in Connecticut, two (2) cars, several bank accounts, a mutual fund, and investment property on Malibu Beach in California. Harris' job transfers him and Wilma to California. After the move, how will Harris and Wilma's property be classified?

Which rule requires that future interests in land take effect within 90 years of creation?

Velma wants to leave 20 acres to the City of Arcadia for use as a library. Which estate will help her accomplish her goals?

What is the Red Cross' interest in the following conveyance: "To Felicia for life, and then to the Red Cross."

What conveyance has Sheldon made if he signed a deed that reads, "To Michelle for life?

What does the law require the decedent's estate to purchase to insure the estate against any wrongdoing by the personal representative?

Who is the original owner of assets that deposits his/her assets into a trust?

Unanswered

Question 18

0 / 1 pts

What is another term (title) for the manager of a trust?

trustee

trustor

settlor

beneficiary

Unanswered

Question 19

0 / 1 pts

Which document does the court give to the personal representative of a decedent's estate to indicate the appointment and authority of the personal representative?

will

inventory

order of probate

letters

Unanswered

Question 20

0 / 1 pts

How will real property be transferred from the trustor to the trustee?

letters

court order

deed

bond

Unanswered

Question 21

0 / 1 pts

What is another legal term for "trustor"?

trustee

beneficiary

executor

settlor

Unanswered

Question 22

0 / 1 pts

Who is appointed under a Trust to manage the Trust's assets?

trustee

trustor

donor

beneficiary

Unanswered

Question 23

0 / 1 pts

What is the method of holding title to real or personal property by two (2) or more people in which upon one owner's death, the remaining owner(s) will not take the deceased owner's share, but the deceased owner's share will pass by the deceased owner's will or by intestate law?

separate property

tenancy in common

community property

joint tenancy with right of survivorship

Unanswered

Question 24

0 / 1 pts

What is the method of holding title to real or personal property by two (2) or more people in which upon one owner's death, the remaining owner(s) will take the deceased owner's share automatically under law.

community property

joint tenancy with right of survivorship

separate property

No answer text provided.

tenancy in common

Unanswered

Question 25

0 / 1 pts

Which tax law allows the decedent spouse to transfer an unlimited amount of assets to the surviving spouse without payment of any estate tax?

estate tax exemption

estate tax exclusion

gift tax

marital deduction

Incorrect

Question 26

0 / 1 pts

What is the most common financial device used to ensure the personal representative in a probate administration performs his/her duties properly?

Surety Bond

Incorrect

Question 27

0 / 1 pts

When a decedent dies, and he is intestate and probate of his/her estate is required, the personal representative will be called the ___________________.

The Administrator

Question 28

1 / 1 pts

What is the term for an unmarried couple in a personal intimate relationship who may register and be recognized by the state for certain personal and financial purposes?

Domestic Partnership

Correct.

Question 29

1 / 1 pts

What document is required by the probate court to report on the assets within the decedent's estate?

Inventory and Appraisal

Correct.

Incorrect

Question 30

0 / 1 pts

What do you generally call a person who acts on behalf of another, for example, makes investment decisions?

Fiduciaries

Question 31

1 / 1 pts

In a probate estate, identify one of the two people who determine the value of the estate assets?

Personal Representative

Correct.

Question 32

Not yet graded / 2 pts

Describe circumstances which would result in a lapsed gift.

Your Answer:

A lapsed gift occurs when a beneficiary named in a will dies before the testator, the person who created the will. If there is no alternative beneficiary or contingency outlined in the will, this gift is deemed to have lapsed, meaning it fails to be transferred because there's no surviving recipient. Essentially, if the intended recipient is no longer alive at the time the testator passes, the test cannot be completed and is considered lapsed.

Question 33

Not yet graded / 2 pts

What is the main purpose of the probate of a decedent's estate? .

Your Answer:

Depending on the nature and value of the deceased individual's assets, it may be necessary to probate the estate. Probate is the legal process for transferring property after someone dies. Depending on the type and value of the deceased's assets, it may be necessary to go through the courts to handle the transfer or inheritance. The main goal of probate is to oversee the court-administered management of the deceased's estate, ensuring debts are paid and the remaining assets are fairly distributed to the rightful heirs or beneficiaries. Inheriting property may not be necessary to proceed through the courts to facilitate the transfer or inheritance of said property. The primary purpose of probate is to facilitate court-supervised administration of the decedent's estate, thereby ensuring that debts are settled and remaining assets are distributed lawfully to the rightful heirs or beneficiaries.

Question 34

Not yet graded / 2 pts

Under what circumstances would the probate court require a blocked account?

Your Answer:

A blocked account ??? a court-ordered account in these cases ??? safeguards funds from unauthorized access. Courts may require a blocked account when minors or incapacitated persons receive money, such as inheritances or settlements, until they reach adulthood or gain capacity. Minors and probate cases often involve minors or individuals needing protection, requiring a guardianship of the estate. Similarly, conservators or guardians managing someone's finances frequently need to deposit assets into such accounts to prevent misuse. In estate cases, funds from sales or proceeds may be held in a blocked account if there's a risk of mismanagement, or during disputes or delays. Overall, blocked accounts protect funds for vulnerable beneficiaries and ensure court oversight before any distribution.

Question 35

Not yet graded / 3 pts

Compare and contrast "Holographic Will" and "Statutory Will".

Your Answer:

A holographic will must be entirely handwritten, signed, and dated, and doesn't require witnesses. Alternatively, a statutory will, provided as a pre-printed form by law, can be completed by hand or typed. Both are legally valid but differ in format and validation. Holographic wills are more flexible but may be more easily challenged if handwriting or intent is unclear.

Question 36

Not yet graded / 3 pts

Compare and contrast "Testamentary Trust" and "Intervivos Trust".

Your Answer:

An intervivos trust is created during the grantor's lifetime, allowing it to avoid probate, maintain privacy, and offer tax advantages. In contrast, a testamentary trust is established by a will only after the testator's death and often requires the testator's court supervision. While testamentary trusts are part of a will and typically go through probate, funded intervivos trusts transfer property directly to the trust, bypassing probate and enabling faster, private distribution.

Question 37

Not yet graded / 3 pts

What are the qualifications for witnesses to a will?

Your Answer:

Testators need two competent witnesses. They can also have an agent sign on their behalf if medical challenges prevent them from signing. In theory, any competent adult can act as a witness. Having a notary act as a witness is not necessary, though some testators have a will notarized for extra security. According to California Probate Code ?? 6110, a valid testator must have two competent witnesses. These witnesses must be present when the testator signs or acknowledges the will. Witnesses should be of sound mind and at least 18 years old, ideally without a financial interest in the will to avoid conflicts. If a beneficiary acts as a witness, at least two disinterested witnesses must also sign to protect their inheritance. Witnesses must be physically present during signing or acknowledgment. Notarization is not required, but can be added in California for extra precaution. The main legal requirement is that interested adults be present, each signing the will. The witnesses help prove that at least two of the testators were competent, disinterested, and voluntary, and that the testators had testamentary capacity.

Question 38

Not yet graded / 3 pts

Though not frequently used in estate planning, explain the reason to use the per capita at each generation method of distribution.

Your Answer:

The primary reason to use the per capita method at each generation in estate planning is to promote fairness among all living members of the same generation. This method avoids unequal distributions that can arise when larger family branches inherit more simply because they have more descendants. By pooling and redistributing shares at each generational level, it ensures that every beneficiary standing in the same degree of kinship to the deceased receives an equal share, regardless of how many siblings or cousins they have. This is particularly appealing to those who want to avoid one branch of the family being favored over others, supporting an even-handed, equitable approach across generations.

Question 39

Not yet graded / 3 pts

For what reason(s) would a client make a specific gift instead of a residuary gift under a will?

Your Answer:

A client might choose to make a specific gift when they want to ensure a particular item, asset, or exact amount of money goes to a designated person or organization. Typical reasons for this include the item's significant sentimental or monetary value, the client's desire to guarantee that a particular person or charity receives a specific asset, or the wish to prevent the distribution of particular valuable or meaningful property from being left to whoever gets the residue of the estate.

Question 40

Not yet graded / 3 pts

How does a living trust (as an estate planning device) help a client avoid probate?

Your Answer:

A living trust helps a client avoid probate by legally holding the property in the trust rather than in the individual's name. When the trust is properly created and assets are correctly titled in the trust's name, those assets bypass the probate process upon the trustor's death. This means the assets can be transferred directly to beneficiaries without court intervention, making the estate settlement faster and more private. Essentially, a properly funded living trust ensures that most assets avoid probate, streamlining the estate transfer process.

Question 41

Not yet graded / 5 pts

Describe how the living trust is divided into sub-trusts upon the death of the first trustor. Then, explain:

1. the possible three (3) sub-trusts that could be created upon the death of the first Trustor; and

2. how real property assets may be transferred into the trust; and

3. how the proceeds of an IRA may be transferred and governed by the trust.

Your Answer:

When one spouse in a joint living trust passes away, the trust is frequently divided into sub-trusts to accomplish estate planning objectives such as minimizing estate taxes, safeguarding assets, and managing inheritance forpouse and future beneficiaries. The original revocable living trust becomes partially irrevocable, specifically the deceased spouse's share. The trustee is responsible for allocating assets between the deceased spouse's share and the surviving spouse's share in accordance with the trust's provisions and applicable tax laws. Assets are valued based onet value at the date of death and are subsequently divided into sub-trusts to protect each party's interests. Potentially three sub-trusts are established: the Survivor's Trust, which holds the surviving spouse's portion of community and separate property, remains revocable, and is used the surviving s their fair markfor ongoing support and management; the Decedent's Trust or Bypass Trust, funded with the deceased spouse's share, becomes irrevocable upon death, and is designed to bypass the taxable estate of the surviving spouse while permitting income and limited principal distributions; and the Marital Trust, an optional trust primarily utilized for estate tax deferral and providing income to the surviving spouse, qualifying for the marital deduction. Consequently, no estate tax is owed until the deathpouse, with income provided for life and the remainder passing to designated beneficiaries. Real of the second s property assetsred into the trust, with title ownership changed from the individual(s) to the t may be transferrust; this involves preparing and recording a new deed and uploading it to ensure the trust owns the property, thereby enabling management or distribution without probate. IRA proceeds may also be transferred and governed bye funds must remain in the owner's name to maintain tax-deferred the trust; thes status. However, the trust can be designated as the beneficiaryompleting a bene of the IRA by cficiary designation form with the financial institution. Upon death, the IRA proceeds are transferred directly to the trust, thereby avoiding probate. The trustee is then responsible for distributing or managing these funds in accordance with the terms of the trust.