CES CES Estate Settlement & Probate Process 1

Question 1

Which document formally authorizes a personal representative to collect assets, pay debts, and distribute a decedent's estate?

Accepted Answer

Letters testamentary

Answer

Letters testamentary are issued by the probate court and grant the executor legal authority to administer the decedent's probate estate.

Question 2

What is the primary advantage of a funded revocable living trust over a will in terms of estate settlement?

Accepted Answer

It avoids probate, allowing assets to pass privately and quickly

Answer

Assets held in a funded revocable living trust pass directly to beneficiaries without probate, reducing delays, costs, and public disclosure.

Question 3

During estate settlement, what is the order of priority for paying claims against a decedent's estate?

Accepted Answer

Administration expenses, then taxes, then secured and unsecured creditors

Answer

Most states prioritize administration expenses and funeral costs, then taxes, then secured and unsecured creditor claims before distribution to beneficiaries.

Question 4

What is 'abatement' in the context of estate settlement?

Accepted Answer

The reduction or elimination of bequests when estate assets are insufficient to satisfy all gifts and debts

Answer

Abatement occurs when estate assets are insufficient to pay debts and make all bequests, causing gifts to be reduced or eliminated in a statutory order of priority.

Question 5

Which type of jointly held property passes outside of probate to the surviving co-owner by operation of law?

Accepted Answer

Joint tenancy with right of survivorship

Answer

Joint tenancy with right of survivorship automatically transfers the deceased owner's interest to the surviving joint tenant without going through probate.

(CES) Certified Estate and Trust Specialist Practice Test

(CES) Certified Estate and Trust Specialist Practice Test

CES CES Estate Settlement & Probate Process 1