CLA/CP Exam Estate Planning and Probate 2 — Questions and Answers
Question 1: Which type of trust allows a grantor to retain control during their lifetime but avoids probate upon death?
- Testamentary trust
- Revocable living trust (Correct answer)
- Charitable remainder trust
- Spendthrift trust
Correct answer: Revocable living trust
A revocable living trust transfers assets outside of probate because the trust, not the individual, holds title to the assets at death.
Question 2: Under the Uniform Probate Code, what is the term for the person named in a will to administer the estate?
- Trustee
- Guardian
- Personal representative (Correct answer)
- Conservator
Correct answer: Personal representative
The UPC uses 'personal representative' as the gender-neutral term for the executor or administrator of an estate.
Question 3: A pour-over will directs assets to which entity at the testator's death?
- A named beneficiary outright
- A revocable living trust (Correct answer)
- The state escheat fund
- A charitable foundation
Correct answer: A revocable living trust
A pour-over will transfers any assets not already in the trust into the grantor's revocable living trust upon death.
Question 4: Which document grants someone authority to make healthcare decisions for an incapacitated principal?
- Durable power of attorney for finances
- Healthcare proxy / medical power of attorney (Correct answer)
- Living will
- Conservatorship order
Correct answer: Healthcare proxy / medical power of attorney
A healthcare proxy or medical power of attorney designates an agent to make medical decisions when the principal cannot.
Question 5: What is the legal term for assets that pass directly to named beneficiaries outside of a will or trust?
- Testate property
- Non-probate assets (Correct answer)
- Residuary estate
- Per stirpes assets
Correct answer: Non-probate assets
Non-probate assets, such as life insurance proceeds and retirement accounts with named beneficiaries, pass by contract and bypass probate.
Question 6: Which doctrine allows a court to modify a charitable trust whose original purpose has become impossible or impractical?
- Spendthrift doctrine
- Cy pres doctrine (Correct answer)
- Resulting trust doctrine
- Constructive trust doctrine
Correct answer: Cy pres doctrine
The cy pres doctrine permits courts to redirect charitable trust assets to a similar charitable purpose when the original purpose fails.
Question 7: When a decedent dies without a valid will, their estate is distributed according to:
- The decedent's oral wishes
- Intestate succession statutes (Correct answer)
- The court's discretion
- Equal shares to all relatives
Correct answer: Intestate succession statutes
Intestate succession statutes establish a priority order of heirs—typically spouse, then children, then other relatives—when no valid will exists.
CLA/CP Exam Estate Planning and Probate 2
Which type of trust allows a grantor to retain control during their lifetime but avoids probate upon death?