CLA/CP Exam Estate Planning and Probate 2

Question 1

Which type of trust allows a grantor to retain control during their lifetime but avoids probate upon death?

Accepted Answer

Revocable living trust

Answer

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?

Accepted Answer

Personal representative

Answer

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?

Accepted Answer

A revocable living trust

Answer

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?

Accepted Answer

Healthcare proxy / medical power of attorney

Answer

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?

Accepted Answer

Non-probate assets

Answer

Non-probate assets, such as life insurance proceeds and retirement accounts with named beneficiaries, pass by contract and bypass probate.

CLA/CP Exam Practice Test