Reference no: EM132197130

A gift of $100,000 to a named beneficiary is a(n) _____ testamentary gift.

A. residuary

B. specific

C. residual

D. general

E. intangible

2. Which of the following are NOT true about a living trust?

A. All the income earned by the trust is attributed to the grantor, who must pay income taxes on the earnings just as if the trust did not exist.

B. It is not subject to property division on divorce.

C. It does not reduce estate taxes any more than a will.

D. It does not avoid creditors.

E. It does not reduce the grantor's income taxes.

3. Which of the following is NOT true about the beneficiaries of a living trust?

A. Usually the grantor is the remainder beneficiary, who receives the income from the trust during his or her lifetime.

B. Usually the grantor is the income beneficiary, who receives the income from the trust during his or her lifetime.

C. A living trust names a beneficiary or beneficiaries who are entitled to receive income from the living trust while it is in existence and to receive the property of the trust when the grantor dies.

D. On the death of the grantor, assets of the trust are distributed to the remainder beneficiary or beneficiaries named in the trust.

E. The designated trustee has the fiduciary duties of identifying assets, paying creditors, paying income and estate taxes, transferring assets to named beneficiaries, and rendering an accounting.

4. Which of the following is NOT true about undue influence?

A. Undue influence is difficult to prove by direct evidence, but it may be proved by circumstantial evidence.

B. The court will look to see if the benefactor and beneficiary are involved in a relationship of confidence and trust as an element of undue influence.

C. A will or trust may be found to be invalid if it was made because of undue influence on the testator.

D. Undue influence can be inferred from the facts and circumstances surrounding the making of a will or trust.

E. If an 85-year-old woman leaves all her property to the lawyer who drafted her will and ignores her blood relatives, the court is unlikely to presume undue influence.

5. Which of the following is NOT an element the court will consider to determine if there has been undue influence?

A. The will or trust contains substantial benefit to the beneficiary.

B. The bequests are the same as in a former will or trust.

C. The beneficiary caused or assisted in effecting execution of the will or trust.

D. There was an opportunity to exert influence.

E. The benefactor and beneficiary are involved in a relationship of confidence and trust.