Documentation & Legal Requirements Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Documentation & Legal Requirements flashcards as text
Which document formally appoints a personal representative to administer a decedent's estate when there is a valid will?
Answer: Letters Testamentary
Letters Testamentary are issued by the probate court to authorize the executor named in a will to act on behalf of the estate.
A trust document contains a 'spendthrift clause.' What is the primary legal effect of this provision?
Answer: It prevents beneficiaries from assigning their interests to creditors
A spendthrift clause protects trust assets by preventing beneficiaries from voluntarily or involuntarily transferring their beneficial interest to creditors.
Under the Uniform Trust Code, what is the minimum notice period a trustee must generally provide to qualified beneficiaries when accepting trusteeship?
Answer: 60 days
The UTC requires trustees to notify qualified beneficiaries within 60 days of accepting a trusteeship, providing key terms of the trust.
Which type of deed transfers real property into a trust without any warranties of title by the grantor?
Answer: Quitclaim Deed
A quitclaim deed conveys only whatever interest the grantor holds without making any title warranties, making it common for transfers into revocable trusts.
An estate's executor fails to file the federal estate tax return (Form 706) by the due date without an extension. What is the standard late-filing penalty?
Answer: 5% per month, up to 25% of unpaid tax
The IRS imposes a failure-to-file penalty of 5% of the unpaid tax for each month (or partial month) the return is late, capped at 25%.
A 'pour-over will' works in conjunction with which estate planning document?
Answer: A revocable living trust
A pour-over will directs any probate assets to 'pour over' into a previously established revocable living trust at death.
Which legal doctrine allows a court to reform a charitable trust whose original purpose has become impossible or impractical?
Answer: Doctrine of Cy-Pres
The cy-pres doctrine permits a court to modify a charitable trust's purpose to one as close as possible to the original when the stated purpose can no longer be fulfilled.