NYLE Trusts, Wills & Estates 3

Question 1

Under New York EPTL § 1-2.16, a 'supplemental needs trust' (SNT) is primarily designed to:

Accepted Answer

Provide for a disabled beneficiary without disqualifying them from government benefits

Answer

A supplemental needs trust preserves a disabled beneficiary's eligibility for Medicaid and SSI by holding assets that supplement, rather than replace, government benefits.

Question 2

A testator's will was signed with two witnesses, but one witness was a beneficiary under the will. Under New York EPTL § 3-3.2, the result is:

Accepted Answer

The witness-beneficiary forfeits any bequest exceeding what they would have received as an intestate heir

Answer

Under EPTL § 3-3.2, the will remains valid, but an interested witness may only take the lesser of the bequest or the intestate share they would have received.

Question 3

Under New York's intestacy statute (EPTL § 4-1.1), if a decedent is survived by a spouse and two children, what does the surviving spouse receive?

Accepted Answer

$50,000 plus one-third of the residue

Answer

Under EPTL § 4-1.1, when the decedent leaves a spouse and children, the surviving spouse receives $50,000 plus one-third of the remaining estate.

Question 4

A trustee of a New York trust invests trust assets exclusively in highly speculative cryptocurrency, resulting in significant losses. Under the New York Estates, Powers and Trusts Law, the trustee has most likely violated:

Accepted Answer

The prudent investor rule

Answer

The prudent investor rule requires trustees to invest and manage assets as a prudent investor would, considering risk and return in relation to the trust's objectives; speculative single-asset concentration violates this standard.

Question 5

Under New York EPTL § 5-3.3, a bequest to a charity is subject to attack by certain surviving relatives if made within how many days of the testator's death?

Accepted Answer

No such limitation exists in New York

Answer

New York repealed its Mortmain statute; there is no longer a time-based restriction on charitable bequests under current EPTL.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE Trusts, Wills & Estates 3