Wills & Trusts Practice Exam Questions

1. 1.Pretermitted heir (Carol): Carol was born after the will's execution. Under most pretermitted heir statutes, a child born after the will's execution who is not provided for takes an intestate share unless the omission was intentional. Carol likely receives a share equal to what she would have received under intestacy (one-third).
2. 2.Anti-lapse statute (Bob): Bob predeceased Testator. Under the UPC anti-lapse statute, if a devisee who is a close relative (descendant, sibling, etc.) predeceases the testator and leaves descendants, the descendants take the deceased devisee's share by representation. Bob's two children take Bob's share.
3. 3.Class gift doctrine: 'To my children' is a class gift. Under the class gift rule, the class includes all members who fit the description at the time of distribution. Carol qualifies as a class member. If the anti-lapse statute applies, Bob's share passes to his children.
4. 4.Distribution: If both statutes apply -- Alice: $300,000; Bob's two children: $150,000 each (sharing Bob's $300,000); Carol: $300,000.

1. 1.Creditor-child's rights: During the settlor's lifetime, a revocable trust is treated as the settlor's asset. The remainder beneficiaries have only expectancy interests, not vested interests. The creditor-child cannot force a distribution because the settlor retains the power to revoke and the trust is for the settlor's benefit during his lifetime.
2. 2.Trustee's fiduciary duties: The successor trustee owes duties of loyalty, prudence, and impartiality. Under the Uniform Prudent Investor Act, the trustee must diversify investments unless special circumstances make concentration reasonable.
3. 3.Breach of duty: Concentrating the trust portfolio in a single stock likely violates the duty to diversify (UPIA Section 3). The 60% loss is evidence of imprudent investment.
4. 4.Remedies: The beneficiaries may surcharge the trustee for losses caused by the breach. The measure of damages is the difference between the trust's actual value and what it would have been with prudent diversified investing. The bank trustee may also be removed.

Correct Answer: B

Under the Statute of Wills, a will can only be revoked by (1) a subsequent writing executed with testamentary formalities, (2) physical act (tearing, burning, etc.) performed with intent to revoke, or (3) operation of law (e.g., divorce in some jurisdictions). Oral declarations of intent to revoke, no matter how many witnesses hear them, do not revoke a written will. John receives the $100,000.

Correct Answer: B

A valid spendthrift clause prevents the beneficiary's creditors from reaching the trust assets or the beneficiary's interest in the trust. Creditors must generally wait until distributions are made to the beneficiary and then pursue the funds in the beneficiary's hands. Exceptions exist for certain creditors (child support, government claims, necessities providers in some jurisdictions), but the general rule protects trust assets from creditor attachment.

Correct Answer: C

Under the Uniform Probate Code Section 2-102(4), when the decedent is survived by a spouse and descendants who are not descendants of the surviving spouse, the surviving spouse receives the first $150,000 plus one-half of any balance of the intestate estate. This protects the surviving spouse while ensuring the decedent's children from a prior relationship receive a share.