A will is a formal declaration of how a person desires to have her or his property disposed of after death and must follow exactly the requirements...

1. A will is a formal declaration of how a person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective.

 a. True

 b. False

2. Match the term to the correct definition.

 Administrator

One who is appointed in a will to see that the will is administered properlyExecutor

One who is appointed by a court to handle the probate of a person's estate if that person dies without a valid will or if the person named in the will cannot serve in that capacityTestator

One who makes and executes a will

3. A gift of a particular item made in a will is known as a:

a. gift causa mortis

b. general legacy

c. specific bequest

4. If any assets remain after debts have been paid and specific gifts have been distributed, they are called the specific legacy

Select

residuary

hang-on devise

general bequests

Item 1

 of the estate.

5. Whenever an estate is insufficient to pay all general bequest in full, a(n) specific bequest

Select

abatement

reduction

proportionate devise

Item 1

occurs.

6. In order for a will to be valid, the testator must have          capacity and intent. This means that the testator must be of legal age and sound mind          the will is          . The will must be          . It also must be          by the testator and usually several people who serve as witnesses.

Fill in the blanks with words that would best complete the passage.

at the time contractual made before legal testamentary in writing probated handwrittenacknowledged signed

7. Select the four components of testamentary capacity:

a. know the nature of the actb. know the names of all beneficiariesc. know the approximate amount of time left to live, based on illness or statistical lifespand. comprehend and remember the people to whom a testator would naturally leave his or her estatee. know the nature and extent of the property in the estatef. understand the distribution of assets called for by the willg. understand the legal requirements in all the states in which estate property exists

8. A will that is completely in the handwriting of the testator is called a(n) nuncupative

Select

oral

invalid

holographic

Item 1

 will. A will that is oral is called a nuncupative

Select

oral

invalid

holographic

Item 2

 will and generally is only valid for personal

Select

real

Item 3

 property and only then if made on the testator's deathbed.

9. Normally a will must be sworn to by at least four witnesses.

 a. True

 b. False

10. A testator may revoke a will by a          act, such as tearing it up; by a subsequent writing such as a new will that is          executed, or a modification to the will, known as a          ; or by law—         to a spouse who is not provided for in the will;          from a person who is named in the will; or the          of a child after the will is written. It is assumed in the law that the testator would want to give the estate to people who are part of the family at the time of death.

Fill in the blanks with words that would best complete the passage.

codicil amendment marriage illegally properly illegal mental physical divorce engagementseparation death birth

11. Match the term to the correct definition.

 Probate

the process of distributing an estate without the use of a willWill substitute

the process of proving and validating a will and settling all matters related to it

12. Probate laws vary from state to state, and may consist of formal or informal procedures depending on the size and complexity of the estate.

 a. True

 b. False

13. Select two ways to avoid the cost of probate.

a. Hiding assets from the IRSb. Gifts while one is still livingc. Selling assets to future heirs at below market valued. Joint tenancy ownership of propertye. Distributing the entire estate without providing for payment

14. Intestacy laws are laws that:

a. establish the requirements of a valid will

b. protect insured parties from duress

c. specify how property will be distributed is someone dies without a will

d. specify which family members are eligible to receive assets under will substitutes

15. Most intestacy statutes provide that the estate must first be used to pay the shares of the surviving spouse and children

Select

debts of the decedent

Item 1

 . The remaining assets will go to the surviving spouse and children

Select

debts of the decedent

Item 2

 .

16. Under intestacy laws, the percentage of an estate that stepchildren likely will receive is:

a. 0 percent

b. 5 percent

c. 25 percent

d. dependent on how many natural children exist

17. When there is no surviving spouse or child, grandchildren, parents of the deceased, and other relatives known as noncollateral

Select

nonrelated

unrelated

lineal

collateral

Item 1

 descendants will receive assets from the estate.

18. Pearl had two children, Lois and Beth. Lois had three children. Beth had five children. Pearl's will is written so that if her two children die before her, then her grandchildren each take an equal share of her estate. Pearl has set up a per stirpes

Select

per capita

Item 1

 distribution of her estate.