CLA/CP Estate Planning and Probate Questions and Answers

Question 1

John passes away without leaving a valid will. His property will be distributed according to state law. What is the legal term for dying without a will?

Accepted Answer

Intestate

Answer

"Intestate" is the legal term for the condition of an estate of a person who dies without a valid will. "Testate" means dying with a valid will. "Escheat" is the process where property transfers to the state if no heirs can be found. "Ademption" occurs when a specific gift in a will is no longer in the estate at the time of death.

Question 2

In her will, Mary names her brother, David, to manage her estate, pay her final debts, and distribute her assets according to the will's instructions. What is David's official legal title?

Accepted Answer

Executor

Answer

An 'Executor' is the person or entity named in a will to carry out its provisions and manage the decedent's estate. An 'Administrator' is appointed by the court when there is no will. A 'Trustee' manages a trust, and a 'Beneficiary' is a person who receives assets from the estate.

Question 3

A client wishes to create a legal document that designates an agent to make medical decisions for them only when they are unable to make those decisions themselves. Which of the following documents would a paralegal assist an attorney in drafting to accomplish this?

Accepted Answer

Durable Power of Attorney for Health Care

Answer

A Durable Power of Attorney for Health Care (also known as a health care proxy or medical power of attorney) is specifically designed to grant an agent authority to make medical decisions upon the principal's incapacitation. A will only takes effect upon death, a trust manages assets, and a general power of attorney typically covers financial matters and may not be effective upon incapacitation unless it is 'durable'.

Question 4

A primary goal for a client in their estate plan is to ensure their major assets, such as their home and investment accounts, pass directly to their children without undergoing the time-consuming and public process of probate. Which estate planning tool is most commonly used to achieve this?

Accepted Answer

A revocable living trust

Answer

Assets properly transferred into a revocable living trust during the grantor's lifetime are not considered part of the probate estate upon death. They are instead distributed by the successor trustee according to the trust's terms, thus avoiding probate. A will, by its nature, must be probated. A power of attorney terminates at death.

Question 5

In many jurisdictions that recognize them, what is the most critical requirement for a holographic will to be deemed valid?

Accepted Answer

The material provisions must be in the testator's handwriting.

Answer

The defining characteristic of a holographic will is that it is written by the testator's own hand. While specific requirements vary by state, the fact that the substantive parts and signature are in the testator's handwriting is the core element that allows it to be valid, often without the witness and notary requirements of a formal will.

CLA/CP Exam Practice Test

CLA/CP Exam Practice Test

CLA/CP Estate Planning and Probate Questions and Answers