Legal Trusts, Wills & Probate 3

Question 1

What is the primary estate-planning purpose of a 'generation-skipping trust' (GST)?

Accepted Answer

To transfer wealth to grandchildren or later generations while potentially reducing estate taxation at the children's generation

Answer

To create a trust exclusively for minor children that terminates when they reach adulthood

Answer

To establish a charitable fund that benefits multiple future generations

Answer

To hold assets in trust until the second generation reaches a specified age

Question 2

What is the primary purpose of a 'durable power of attorney' for financial matters?

Accepted Answer

To authorize a designated agent to manage the principal's financial affairs if the principal becomes incapacitated

Answer

To create a living trust and transfer assets during the principal's lifetime

Answer

To transfer titled property to beneficiaries at death without probate

Answer

To appoint a guardian for the principal's minor children

Question 3

What is 'undue influence' as a ground to invalidate a will?

Accepted Answer

Improper pressure or coercion that overcomes the testator's free will, resulting in a will that does not reflect their genuine intentions

Answer

A technical deficiency in the will's execution formalities

Answer

The financial influence an estate planning attorney exerts over a client

Answer

The effect of a testator's intoxication at the time of signing

Question 4

What does the 'doctrine of lapse' provide in will law?

Accepted Answer

A bequest fails if the named beneficiary predeceases the testator, unless an anti-lapse statute or the will provides otherwise

Answer

A will automatically expires and becomes void a set number of years after execution

Answer

Later codicils automatically supersede and replace conflicting provisions in the original will

Answer

Estate tax returns filed after the deadline result in forfeiture of tax deductions

Question 5

What is a 'Totten trust' (payable-on-death bank account)?

Accepted Answer

A bank account held in trust for a named beneficiary who receives the balance upon the depositor's death without probate

Answer

A charitable trust established by court order during the grantor's lifetime

Answer

A trust created by operation of law to remedy unjust enrichment

Answer

A trust used exclusively for purchasing and holding real property

Question 6

Under the Uniform Probate Code, what makes a will 'self-proved'?

Accepted Answer

Sworn affidavits of the testator and witnesses are attached at execution, eliminating the need for witness testimony during probate

Answer

The will is prepared entirely without attorney involvement

Answer

The will bears the seal of a notary but requires no witnesses

Answer

The will is filed with the probate court prior to the testator's death

Question 7

What is the legal distinction between a 'specific bequest' and a 'general bequest' in a will?

Accepted Answer

A specific bequest identifies a particular item of property, while a general bequest is satisfied from the estate's general assets without designating specific property

Answer

A specific bequest transfers a larger dollar amount than a general bequest

Answer

Specific bequests pass to family members while general bequests are reserved for charities

Answer

Specific bequests are exempt from estate tax while general bequests are fully taxable