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Q:
Which of the following is one of the requirements for forming an express trust?
A. The settlor need not necessarily attain the age required by state law for the creation of valid wills and contracts.
B. The trust cannot be created for a reason that is contrary to public policy.
C. The settler must name a trustee for the trust and a substitute trustee in the event the named trustee refuses to act.
D. The beneficiaries cannot be members of a specific class, such as "my children."
Q:
Which of the following creates a revocable living trust?
A. Doctrine of cy pres
B. Express trust
C. Spendthrift trust
D. Totten trust
Q:
A whole life policy may develop either a cash surrender value or a loan value, but not both.
Q:
Property insurance contracts are indemnity contracts.
Q:
"Domicile" refers to a person's:
A. permanent home.
B. permanent and temporary residences.
C. state, where he probates his will.
D. a person's necessity to make a particular state, home.
Q:
When a person dies intestate, the property the person owns:
A. is distributed to the people designated as the intestate's heirs.
B. will be distributed according to the law of the state in which the person is domiciled.
C. escheats to the state.
D. will go to the biological children, not the adopted children.
Q:
In terms of intestacy statutes, adopted children:
A. will inherit from their biological parents.
B. will inherit from their adopted parents.
C. will inherit from their adopted parents but a share lesser than the adopted parents' biological children.
D. will not inherit anything from anyone.
Q:
Under the Uniform Simultaneous Death Act, if a husband and wife die under circumstances that make it difficult or impossible to determine who died first:
A. the husband's property will go to his relatives and the wife's property to her relatives.
B. the property will automatically be distributed among the husband's siblings.
C. the property will revert to the state.
D. the property will automatically be distributed among the husband's relatives.
Q:
Who among these is responsible for administering a person's will and settling their estate?
A. An arbitrator
B. The attorney general
C. A Probate court
D. A Family court
Q:
Benny is the sole beneficiary of Paul's trust. In this trust, Benny can:
A. also serve as the sole trustee.
B. not serve as the sole trustee.
C. serve as both trustee and testator.
D. serve as trustee during the trustor's lifetime.
Q:
A codicil is a(n):
A. amendment to a will.
B. automatic revocation of a will.
C. trust.
D. creditor's claim against the estate.
Q:
Which of the following is an example of advance directives?
A. Intestacy
B. Codicil
C. Escheat
D. Living will
Q:
Under the Patient Self-Determination Act, health care providers must:
A. provide oral information to adults receiving medical care about their rights to accept or refuse medical treatment.
B. document in the patient's medical record whether the patient has executed an advance directive.
C. must ensure compliance with federal laws concerning advance directives.
D. contact the patient's attorney for consenting or withholding consent to surgery.
Q:
If a person wants to make a change to their will, the person can do so by:
A. appearing in court.
B. executing a codicil.
C. by posting legal notice of amendment.
D. by striking out objectionable provisions.
Q:
A will, might be recognized by the state even if it does not meet the formalities required by law, if it is a:
A. holographic will.
B. living will.
C. joint will.
D. mutual will.
Q:
(p. 727- 728) Alma was suffering from a terminal disease. Because she distrusted attorneys, she wrote a statement in her own handwriting, labeling it "My Last Will and Testament." The statement contained a provision specifying that Alma wanted all of her property to go to her church at her death. She signed the statement, stored it in her jewelry box and she told her friend Willa of its location. When Alma died, Willa produced Alma's statement. Willa is now attempting to have the statement admitted to probate as Alma's will. Alma's grown children claim that Alma died intestate and that they should inherit her property. If Alma's state recognizes holographic wills:
A. Alma's will is void and her children will inherit.
B. the church will inherit Alma's property.
C. Alma's children and the church will split Alma's property under the doctrine of nuncupative.
D. the will can be declared void and the property can go to the state.
Q:
(p. 727- 728) In the states that recognize holographic wills, such wills will be valid:
A. if they do not evidence testamentary intent.
B. if they are in the handwriting of the testator.
C. if only the material portions in the will are typed.
D. if they are typed and evidence testamentary intent.
Q:
Children, born or adopted after a will has been executed are called:
A. presumptive heirs.
B. pretermitted children.
C. illegitimate children.
D. nuncupative heirs.
Q:
Which of the following is true of the right of a widow on a life estate?
A. The widow gets a one-third interest in fee simple, only in the real property owned by the testator during their marriage.
B. The widow has the right to a life estate in two-third of the lands owned by her husband at the time of his death.
C. The widow has the right to a life estate in one-third of the lands owned by her husband during their marriage.
D. The widow gets a one-third interest in fee simple in the real and personal property owned by her husband at the time of his death.
Q:
(p. 724- 725) While on his deathbed, Larry's grandfather revoked all his prior wills and wrote out a new will in his own handwriting, leaving everything to the local animal shelter in trust for his dog, Fido. Grandfather signed the will and mailed it to the animal shelter before he died. Larry wants to challenge the new will. Which of the following statements is true?
A. Grandfather did not have the legal right to revoke his prior will without notice to Larry and the other beneficiaries.
B. If his grandfather lacked the mental capacity to understand his actions, the new will is invalid.
C. The holographic will would not be valid in any state because it was executed without the presence of witnesses.
D. The will would be treated as valid only if signed by two or more interested witnesses.
Q:
The "execution of a will":
A. must strictly meet all the formalities required by state law, or it is void.
B. must partially meet general requirements of state law, or it is void.
C. must strictly meet all the formalities required by federal law, or it is void.
D. must partially meet the general requirements of federal law, or it is void.
Q:
Which of the following is a formality usually required by state law for the creation of a valid will?
A. The will must be witnessed and signed by at least two persons who stand to inherit under the will.
B. Notice of the making of the will must be published in the newspaper.
C. The will must be signed by the testator or by someone else at the testator's direction.
D. The testator should declare, after the signing, that the instrument is his will.
Q:
Which of the following is true of a joint will?
A. Whether a joint will is revocable depends only on the language of the will.
B. The mere fact that a joint will has been executed creates the presumption of a contract not to revoke the will.
C. Underlying a joint will is an agreement on a common plan.
D. A testator who has made a joint will cannot change the will later under any circumstances.
Q:
A nuncupative will:
A. must be in writing.
B. is valid to transfer personal and real property.
C. must be signed by the testator.
D. is valid when made by soldiers or sailors.
Q:
A constructive trust is created by operation of law to avoid fraud.
Q:
Life insurance proceeds are usually controlled by:
A. statutes.
B. the provisions of a will.
C. the insured's designation of beneficiaries.
D. the right of survivorship.
Q:
Jim and Terry were married and had three children. Jim and Terry owned their home together as tenants in the entirety. If Jim dies intestate, under the laws of most states, who owns the home?
A. Terry owns one-half and the children each own a one-sixth share of the home.
B. Terry and each of the children own one-fourth share of the home.
C. Each of the children own one-third of the home.
D. Terry owns the home by right of survivorship.
Q:
"Testamentary capacity" refers to:
A. the legal capacity to make a valid will.
B. the limit on how much property can be inherited by a given individual.
C. the ability to give gifts to the testator's issues or descendants.
D. the lack of awareness of the value of the property by the testator.
Q:
To have testamentary capacity, a person must:
A. not move in and out of periods of lucidity.
B. not be less than 20 years of age.
C. be in perfect mental health.
D. be of sound mind and of legal age.
Q:
Intestacy statutes are designed to reflect the presumed intent of the deceased.
Q:
If a person who is entitled to a share of the decedent's estate survives the decedent but dies before receiving her share, her share in the decedent's estate becomes part of her own estate.
Q:
A will proved by an affidavit sworn to and signed by the testator and the witnesses, at the time the will was executed, is called a self-proving affidavit.
Q:
Federal inheritance taxes are imposed on a person who receives a statutory share from an estate.
Q:
Under the rule against perpetuities, when a private trust is created, the beneficiary must be known at the time.
Q:
A trustee owes a duty of loyalty to the beneficiaries.
Q:
Under the laws of some states, the birth of a child after the execution of a will may operate as a partial revocation of the will.
Q:
A durable power of attorney terminates upon the incapacity of the principal.
Q:
The standard for mental capacity to make a will is fairly low.
Q:
A joint will can never be revoked.
Q:
A nuncupative will is a will that is written and signed in the testator's handwriting.
Q:
A person who inherits property under a will takes the property free of all outstanding claims against the property.
Q:
The rights of beneficiaries are superior to the rights of creditors under a will.
Q:
A person may amend her valid will by merely striking out objectionable provisions and inserting new provisions.
Q:
Describe the responsibilities of personal representative in the administration of an estate.
Q:
Define a constructive trust and the duty it imposes on the constructive trustee.
Q:
Name the basic formalities required by most states in the execution of a will.
Q:
Holographic wills are valid under which conditions?
Q:
Explain durable power of attorney for health care.
Q:
Under what circumstances can a tenant invoke the doctrine of constructive eviction?
Q:
Explain the difference between an "assignment" and a "sublet."
Q:
Lloyd deposits money in First Bank, in trust for his daughter, Kelly. At Lloyd's death, if he has not revoked this trust then:
A. the money in the account will belong to Kelly.
B. the money in the account will be transferred to a charitable organization.
C. the money in the account will belong to the bank.
D. the money will automatically belong to the state and will be used for the benefit of the society.
Q:
Miriam established a trust by placing substantial funds in a trust account for the benefit of her son, Robert. Miriam appointed her brother, Fred, as trustee for the trust. In the trust document, she did not expressly define Fred's powers as trustee, or his duties. Under these circumstances:
A. Fred must use a reasonable degree of skill, judgment, and care in the exercise of his duties.
B. Fred does not owe any fiduciary duty to the beneficiary.
C. Fred has the right to commingle his property with the property he holds in trust.
D. Fred cannot delegate ministerial duties.
Q:
Spendthrift clauses:
A. operate to restrict the voluntary or involuntary transfer of a beneficiary's interest in a trust.
B. give the trustee discretion concerning the amount of principal or income to be paid to a beneficiary.
C. enable a person to put their own property beyond the claims of their own creditors.
D. prevent divorced spouses from claiming alimony.
Q:
Which of the following would terminate a lease?
A. Assignment.
B. A party's material breach of the lease.
C. Landlord's unanimous decision.
D. Subleasing.
Q:
Identify the correct statement about abandonment.
A. When a tenant abandons the leased property, the landlady has a duty to accept the surrender under any circumstances.
B. If the landlady can't find a new tenant, she cannot sue the old tenant for the rent due for the remainder of the term.
C. If a tenant abandons the leased property, he is making an offer to sublease the leasehold.
D. The landlady can mitigate damages caused by the abandonment by attempting to rent the leased property to a new tenant.
Q:
Define "tenancy for a term" and show how it differs from "periodic tenancy".
Q:
Explain the Fair Housing Act. Under what circumstances, can people be exempted from this act?
Q:
Explain the implied warranty of habitability, in a lease setting.
Q:
The duty not to commit waste means:
A. the landlord has a duty not to do any act that would harm the property.
B. the tenant is responsible for the care and upkeep of the property.
C. the tenant has a duty to protect the property and take reasonable care to protect it from other's criminal conduct.
D. the tenant has the duty to make repairs irrespective of whether the damage was caused by his negligence or not.
Q:
_____ occurs when a tenant transfers to another person some, but not all, of his remaining right to possess the property.
A. Subleasing
B. Assignment
C. Periodic tenancy
D. Exclusive possession
Q:
If a tenant breaches the lease, then the landlord can _____ the tenant.
A. assign
B. surrender
C. evict
D. abandon
Q:
Which of the following is a tenant's right?
A. The tenant has the right to exclusive possession of the property only if there is an implied warranty of possession and habitability.
B. The landlord is not entitled to enter the leased property without the tenant's consent, unless the lease specifies this.
C. The tenant may use the leased premises for any purpose, whether lawful or unlawful.
D. The tenant has the right to receive leased residential property in a habitable condition only at the beginning of the lease.
Q:
Charlie and Violet signed a lease to rent an apartment from Joey. After moving into the apartment, they have a heated argument one day and Violet moves out. Under these circumstances:
A. Joey may hold Charlie responsible for the entire rent.
B. Joey may hold Charlie liable for only half the rent.
C. there is an automatic termination of the lease by Joey.
D. Joey will have to file a suit against Violet for the rent.
Q:
When tenants transfer all of their remaining rights under a lease to a third party, a(n) ____ occurs.
A. assignment
B. sublease
C. constructive eviction
D. termination
Q:
Title III of the Americans with Disabilities Act applies to landlords leasing:
A. private property.
B. a place of public accommodation.
C. private property accommodating more than two people.
D. private residential property for public use.
Q:
A landlord has the duty:
A. to ask the tenant to maintain common areas.
B. not to commit waste on the property.
C. to use reasonable care in performing repairs.
D. to get the property in as good a condition as it was when leased.
Q:
Sam Jackson rented an apartment from Landlords Inc. Sam invited Susie Brenner over for dinner. Susie slipped on a banana peel as she entered the apartment building on the common stairway. Under these circumstances:
A. Sam is liable for Susie's injury since he invited her to the apartment.
B. Landlords Inc. will be liable to Sam only.
C. Susie can recover from Landlords if she can show that they did not use reasonable care in maintaining the stairway.
D. Susie cannot recover as she was not a tenant of Landlords Inc.
Q:
Which of the following is true for current trends in landlord's tort liabilities?
A. The landlord will have liability only under standard housing codes and not under the implied warranty of habitability.
B. The landlord will be not liable for lack of reasonable care in their maintenance of the leased property.
C. The landlord will not be liable to protect tenants from substantial risks of harm created by other tenants.
D. The landlord will have liability for defects that he/she had reasonable opportunities to repair, but didn't.
Q:
Graham is a landlord who owns an apartment where Sam and several other tenants live. Graham refuses to install lights, new locks, and a security system, even though Sam and several other tenants have been burglarized repeatedly in the past two weeks. Under the modern trend of landlord liability:
A. Graham has no duty to protect Sam from third-party conduct.
B. Graham can be held liable for breach of implied warranty of habitability.
C. Graham has a duty to protect Sam and the other tenants from foreseeable criminal conduct.
D. Graham is liable for breach of the implied warranty of quiet enjoyment.
Q:
Under the implied warranty of quiet enjoyment, a landlord:
A. can enter the leased property during the term of the lease.
B. may not enter the leased property during the term of the lease.
C. can enter the leased property anytime as long as he/she does so quietly.
D. may not interfere with any matter concerning the property.
Q:
The implied warranty of habitability in lease situations requires:
A. the landlord to ensure that the property is suitable for living.
B. the tenants to maintain a habitable dwelling during the term of the lease.
C. the tenants to comply with applicable housing codes.
D. the landlord to terminate the lease if the warranty has been breached.
Q:
_____ is remedy the tenant has for breach of implied warranty of habitability.
A. New tenancy
B. Lease extension
C. Refund of the security deposit
D. Rent abatement
Q:
Constructive eviction is an unattractive option for some tenants because:
A. the tenant has to share the repair expenses with the landlord.
B. the tenant cannot terminate the lease.
C. the tenant is required to vacate the leased premises.
D. the tenant is required to vacate the leased premises and obligated to pay the rent for the remaining period.
Q:
Statutes or ordinances designed to prevent abuse of security deposits by landlords:
A. limit the amount the tenant may pay.
B. require that the security deposit be refundable.
C. allow landlords to withhold portions even when the tenant causes ordinary damage to the property.
D. prohibit landlords from taking advance payments of rents from tenants.
Q:
Which of the following statements is true about the Fair Housing Act?
A. A landlord who uses a real estate broker is exempted from this act.
B. It doesn't hold a landlord liable for refusing to allow a handicapped person from making reasonable modifications to the leased property.
C. The act prohibits landlords from excluding families with children.
D. The act prohibits discriminatory practices in various transactions affecting housing, except the rental of dwellings.
Q:
Sam and his friend Louie agreed that Sam would lease an apartment from Louie for three months in the summer. On the date the lease was to begin, Sam arrived at the apartment and discovered that Louie's friend, Sheila was already living there. Under these circumstances, the lease between Sam and Louie:
A. is unenforceable because it was a periodic tenancy.
B. is unenforceable because it created a tenancy at will.
C. is enforceable because Louie breached the covenant of quiet enjoyment.
D. is enforceable because Louie violated the implied warranty of possession.
Q:
Eli rents an old farmhouse from Kathy for a term to begin on July 31, 2006 and end on August 1, 2007. When Eli attempts to move in, he finds that Rose, the previous tenant, is still living in the house. Here, Kathy has breached:
A. the implied warranty of habitability.
B. the implied warranty of possession.
C. the implied warranty of quiet enjoyment.
D. the clauses of the Fair Housing Act.
Q:
To be enforceable, most states require that a lease must be in writing:
A. if it is for a term of more than three months from the date it is made.
B. if it is for a term of more than one month from the date it is made.
C. if it is for a term of more than one year from the date it is made.
D. if it is for a term of more than six months from the date it is made.
Q:
A periodic tenancy is also known as a(n):
A. freehold estate.
B. easement.
C. a tenancy from year to year.
D. a tenancy for years.
Q:
A _____ occurs when property is leased for an indefinite period of time and either party may choose to conclude the tenancy at any time.
A. tenancy at will
B. tenancy at sufferance
C. periodic tenancy
D. tenancy for a term