Mann_BLRB 9_TB_Ch51

Business Law and the Regulation of Business

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Chapter 51—Trusts and Wills TRUE/FALSE 1. A charitable trust is a trust designed to benefit humankind. ANS: T MSC: AACSB Analytic 2. An express trust may be found if the intent of the grantor to create a trust is unmistakable. ANS: T MSC: AACSB Analytic 3. In order to use the money in a spendthrift trust as collateral, the beneficiary requires prior approval of the trustee. ANS: F MSC: AACSB Analytic 4. A totten trust is revocable by the creator. ANS: T MSC: AACSB Analytic 5. Constructive trusts are generally found where the creator clearly intended a trust to be formed. ANS: F MSC: AACSB Analytic 6. Anyone legally capable of holding title to and dealing with property may be a trustee. ANS: T MSC: AACSB Analytic 7. Consideration is necessary in order to enforce a trust. ANS: F MSC: AACSB Analytic 8. A minor's declaration of trust is voidable. ANS: T MSC: AACSB Analytic 9. Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself. ANS: F MSC: AACSB Analytic 10. A beneficiary may sell his interest in trust assets before he is entitled to receive the corpus unless oth- erwise provided in the trust instrument. ANS: T MSC: AACSB Analytic 11. The courts may not create implied trusts. ANS: F MSC: AACSB Analytic 12. A trust is presumed to be irrevocable unless the grantor reserves the power of revocation.
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MSC: AACSB Analytic 13. The death of the beneficiary will generally terminate the trust. ANS: F MSC: AACSB Analytic 14. There is no such thing as an irrevocable will. ANS: T MSC: AACSB Analytic 15. A resulting trust depends on a contract or agreement as evidenced by the parties' acts. ANS: F MSC: AACSB Analytic 16. A witness to a will who is "interested" will be disinherited or disqualified. ANS: T MSC: AACSB Analytic 17. In most states, there is no lower age limit for testators as long as they understand the extent of their property. ANS: F MSC: AACSB Analytic 18. A codicil to the will must be executed with all the formal requirements of a will. ANS: T MSC: AACSB Analytic 19. If a will was burned in an electrical fire that destroyed the testator's home, the will is presumed to be revoked. ANS: F MSC: AACSB Analytic 20. A second will automatically revokes an earlier will if it is wholly inconsistent. ANS: T MSC: AACSB Analytic 21. Divorce or marriage will result in a revocation of a will. ANS: F MSC: AACSB Analytic 22. Renunciation is a statutory right of a surviving spouse to give up her statutory share in the estate. ANS: F MSC: AACSB Analytic 23. A completely handwritten will is valid only if witnessed. ANS: F MSC: AACSB Analytic 24. Nuncupative wills are generally not enforceable. ANS: T
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Mann_BLRB 9_TB_Ch51 - Chapter 51-Trusts and Wills...

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