Probate & Estate

The flashcards below were created by user tismeinaz on FreezingBlue Flashcards.

  1. A will is ambulatory when it
    A. is recognized as a valid will in another state
    B. allows an individual who is a nonresident to be a witness to the will.
    C. disposes of property owned at death regardless of when the propery was acquired
    D. meets the elements for testementary capacity.
    C. disposes of property owned at death regardless of when the propery was acquired
    (this multiple choice question has been scrambled)
  2. If a testator has another individual sign the testator's name to a will in the testator's presence and with his permission, one of the requirements for formal will signing has been met. T/F
  3. In an estate proceeding, no bond will be required if the
    a. will waives bond
    b. beneficiaries wave bond
    c. heirs wave bond
    d. all of the above
    e. none of the above
    d. all of the above
  4. A disclaimer of property relates back to the date the will or trust was signed. T/F
  5. If a decedent owned U.S. Govt Series EE bonds and the accumulated interest is to be reported during the estate administration, the interest from the bonds must be reported on the decedent's final Form 1040, Individual Income Tax Return. T/F
  6. A demonstrative bequest is
    A. paid from a specific source, and any deficiency is paid from the general estate.
    B. a gift paid in advance of the decedent's deathn
    C. paid from the general estate assets
    D. paid after all debts and general and specific bequests have been satisfied.
    A. paid from a specific source, and any deficiency is paid from the general estate.
    (this multiple choice question has been scrambled)
  7. A power of appointment
    a. is the right granted to an individual to direct how another's property will be distributed
    b. if held by a decedent over specific property, means the value of the property is included in decedent's estate
    c. may be granted only to decedent's family members
    d. all of the above
    e. a and b
    e. a and b
  8. The first year of the estate fiduciary income tax return must end no later than December 31 T/F
  9. Pretermitted heirs are persons who are specifically named by the testator in his will to be his beneficiaries. T/F
  10. A skip person under generation-skipping transfer trust is a member of the generation "jumped over" in order to get to the next descending generation. T/F
  11. Which of the following is the least accurate statement concerning a qualified terminable interest trust?
    A. grantor of the QTIP controls final dispositoin of the assets
    B. surviving spouse must meet specific criteria to qualify as a beneficiary.
    C. surviving spouse must receive all of the income
    D. value of the assets are included n the surviving spouse's estate for estate tax purposes.
    B. surviving spouse must meet specific criteria to qualify as a beneficiary.
    (this multiple choice question has been scrambled)
  12. and wife
    et ux
  13. beneficiary
  14. man who executes a will
  15. transfer of property to a party, to be held for the benefit of another.
  16. Probate property
    property owned soley by the deceased
  17. Non-probate property
    property owned by deceased where the disposition is made automatically or by operation of law at death.
  18. Testamentary Trust
    created by a will and is part of the will
  19. Inter Vivos Trusts
    Living trust
  20. Credit Shelter Trust
    aka: credit, family or residue trust. Nonmarital trust - assets having value equal to the federal estate tax exemption equivalent - tax exempt.
  21. Marital & QTIP trusts
    used to minimize the tax burden between the decedent's estate and the surviving spouse's estate. (Qualified terminable interest property)
  22. Sprinkle Trust
    discretionary trust. provides spendthrift protection, estate tax saving, income tax savings and funds are allocated according to need.
  23. Spendthrift Trust
    provision in a trust used to protect the assets from creditors.
  24. Generation Skipping Transfer (GST) Trusts
    A trust where the beneficiaries are not the next generation. The beneficiaries could be grand or great grandchildren.
  25. Trusts for Disabled Children
    used to provide funds for extraordinary benefits not provided by medicaid.
  26. Standby Trusts
    conduit trust. Upon grantor's death, the assets are distributed to another trust for distribution.
  27. disposition of property in a will is devised T/F
  28. disposition of personal property is a bequest T/F
  29. Holographic Will
    handwritten, signed and not notarized - valid in nearly half the states.
  30. Noncupative Wills
    oral will, made during the testator's last illness. Witnesses must be present and at least one must be willing to testify in court.
  31. Self-Proving Clause
    aan acknowledgment of the testator and affidavits of the witnesses, each made before a notary public.
  32. Grounds for Invalidity
    • Incapacity
    • Fraud Execution/Inducement
    • Duress
    • Undue Influence
  33. Pretermitted heirs
    those born or acquired after the execution of the will
  34. Per Stirpes
    Estate divided into as many shares as there are (1) living children plus (2) deceased children leaving issue.
  35. Per Capita
    estate divided into as many shares as there are (1) surviving heirs in the nearest degree of kinship and (2) deceased heirs of the same class with suviving issue
  36. Probate
    liquidation and distribution process to convey legal title to the decedent's heirs or beneficiaries.
  37. Primary Jurisdiction
    domicile at time of death
  38. Ancillary Jurisdiction
    property owned in states other than where the domicile was established.
  39. Estate Administration
    • 1. Assemble and inventory estate
    • 2. Pay claims, debts, and taxes
    • 3. manage assets
    • 4. account for and distribute assets
  40. Informal Administration
    used when there is no liklihood of disagreements or contests among the beneficiaries or heirs over the administration of the estate or distribution of assets.
  41. Summary Administration
    used when the value of the entire estate (less liens and encumbrances) does not exceed the allowances and exemptions.
  42. Intestate Distributions
    Once heirs are determined, the state's intestate succession statutes control distribution
  43. Testate Distributions
    • Specific bequests and divises
    • Demonstrative bequests
    • General bequests
    • Residuary Dispostions
  44. Ademption
    Only in testate estates. When property bequeathed or devised no longer exists, the legatee gets nothing. (ademption by extinction)
  45. Ademption by Satisfaction
    When the testator distributes bequeathed property to the beneficiary prior to death.
  46. Abatement
    If, after pymt of claims and expenses, the remaining property is insufficient to satisfy all bequests and devises, a reduction of some or all the heir's shares must occur.
  47. Elective Share
    The Uniform Probate Code prohibits a spouse from being disenherited. The surviving spouse may accept the dispositive provisions of the will or take a statutory (elective) share.
  48. Renunciation/Disclaimer
    When a beneficiary does not wish to accept inherited property.
  49. Final Distribution and Discharge
    To close an estate, the representative files a verified statement that the assets were distributed and accounted for. The rep is discharged on yr from the date that stmt is filed.
  50. Taxable Estate
    Gross less allowable deductions: funeral and admin costs; claims; unpaid mtgs and debts; losses; charitable transfers; marital deduction.
  51. Qualified Domestic Trust
    requires that at least one trustee is a US citizen or domestic corporation. it permits no distributions unles the US Trustee has the authority to withhold estate taxes, meets tax regs for collection of estate tax, and allows the executor to elect the trust be treated as a QDT.
Card Set
Probate & Estate
Probate & Estate
Show Answers