Fundamentals of Estate Planning Test: HS-330

All the following statements concerning wills are correct EXCEPT:

A. Once a person is named as an executor in a will, he or she is required to serve.

B. A codicil is a valid modification of a will.

C. A testator may lose the capacity to revoke a will prior to death.

D. In most states a surviving spouse can elect against a will that completely disinherits him or her.

A man established and funded an irrevocable trust and named a bank as trustee. All income from the trust is to be paid to his four grandchildren. Which of the following powers retained by the grantor of the trust will cause all or a portion of the trust assets to be includible in his gross estate for federal estate tax purposes?

1.

The power to add principal to the trust

2.

The power to vary the amounts of trust income paid to each grandchild

A. Neither 1 nor 2

B. 1 only

C. 2 only

D. Both 1 and 2

Which of the following statements concerning a simple trust is correct?

A. Income and principal may be distributed to a qualified charity.

B. Income is accumulated at the discretion of the trustee.

C. It receives a special tax deduction for income distributed to its beneficiaries.

D. It limits the number of permissible beneficiaries.