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Flashcards in Business Law 2 - Test 2 Deck (233)
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1

. A trust for the dissemination of a particular political doctrine cannot be a charitable trust.
a. True
b. False

False

2

An express trust may be found if the intent of the grantor to create a trust is unmistakable.
a. True
b. False

True

3

A trust may serve any purpose that is not against the law or public policy.
a. True
b. False

True

4

. A totten trust is revocable by the creator.
a. True
b. False

True

5

Constructive trusts are generally found where the creator clearly intended a trust to be formed.
a. True
b. False

False

6

The powers of a trustee are determined solely by the trust instrument.
a. True
b. False

False

7

. Consideration is necessary in order to enforce a trust.
a. True
b. False

False

8

A minor's declaration of trust is voidable.
a. True
b. False

True

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.
a. True
b. False

False

10

A person’s written statement that he is leaving property “to Margaret in full confidence and with hope she will take care of Tina” is too indefinite to create a trust.
a. True
b. False

False

11

The courts may not create implied trusts.
a. True
b. False

False

12

A trust is presumed to be irrevocable unless the grantor reserves the power of revocation.
a. True
b. False

True

13

. The death of the beneficiary will generally terminate the trust.
a. True
b. False

False

14

There is no such thing as an irrevocable will.
a. True
b. False

True

15

A resulting trust depends on a contract or agreement as evidenced by the parties' acts.
a. True
b. False

False

16

A witness to a will who is "interested" will be disinherited or disqualified.
a. True
b. False

True

17

. In most states, there is no lower age limit for testators as long as they understand the extent of their property.
a. True
b. False

False

18

A codicil to the will must be executed with all the formal requirements of a will.
a. True
b. False

True

19

If a will was burned in an electrical fire that destroyed the testator's home, it will be presumed to be revoked.
a. True
b. False

False

20

A second will automatically revokes an earlier will if it is wholly inconsistent.
a. True
b. False

True

21

Divorce or marriage will result in a revocation of a will.
a. True
b. False

False

22

Renunciation is a statutory right of a surviving spouse to give up her statutory share in the estate.
a. True
b. False

False

23

A completely handwritten will is valid only if witnessed.
a. True
b. False

False

24

Rayshawn served as a witness to Samuel’s will, but died before Samuel. When Samuel’s will is probated, proof of Rayshawn’s handwriting is necessary unless there are enough other witnesses to meet the statutory requirements without Rayshawn.
a. True
b. False

True

25

A photocopy of a will or a will written in pencil would not be valid for probate.
a. True
b. False

False

26

A stepchild will not ordinarily inherit under intestacy statutes unless legally adopted.
a. True
b. False

True

27

A totten trust may also be referred to as a savings account trust.
a. True
b. False

True

28

A court will require witnesses' signatures to be proven before a formal decree will be issued allowing the will.
a. True
b. False

True

29

The executor or administrator does not occupy a fiduciary relationship with regard to the estate.
a. True
b. False

False

30

A trust for the establishment and maintenance of a museum would be a charitable trust.
a. True
b. False

True