A will is revocable only after the testator’s death. 2. The testator generally must sign a will. 3. If a person dies without a will, all of their property automatically passes to the state in which that person lived most of their life. 4. A living trust is created by a grantor during their lifetime. 5. A testamentary trust is created by will and begins on the settlor’s death. 6. If a person marries after executing a will that does not include the spouse, the spouse gets nothing when the person dies. 7. If a will setting up a testamentary trust is invalid, the trust is also invalid. 8. A constructive trust does not differ from an express trust.
The Correct Answer and Explanation is :
Here’s the correct assessment of the statements provided:
- False – A will is revocable during the testator’s lifetime; it becomes irrevocable upon their death.
- True – Generally, a will must be signed by the testator to be valid.
- False – If a person dies without a will, their property is distributed according to the state’s intestacy laws, not automatically to the state.
- True – A living trust is created by a grantor during their lifetime to manage assets.
- True – A testamentary trust is created by a will and only takes effect upon the settlor’s death.
- False – In many jurisdictions, a surviving spouse is entitled to a statutory share of the estate, even if omitted from the will.
- True – If the will setting up a testamentary trust is invalid, the trust fails since its validity depends on the will.
- False – A constructive trust is a legal remedy imposed by a court, differing from an express trust, which is intentionally created by the grantor.
Explanation (300 Words):
Wills and trusts are essential tools for estate planning. A will is a legal document dictating how a person’s property should be distributed after their death. It is revocable during the testator’s lifetime, allowing for updates as circumstances change. However, once the testator passes, the will becomes irrevocable. A will must generally be signed by the testator and witnesses to be valid, though rules can vary by jurisdiction.
When someone dies intestate (without a will), their assets are distributed based on state laws, usually prioritizing close family members. The property does not automatically pass to the state unless no eligible heirs exist.
A living trust is a proactive tool created during a person’s lifetime to manage assets, often used to avoid probate. In contrast, a testamentary trust is established through a will and becomes effective only after the settlor’s death.
Marriage after executing a will can trigger “elective share” statutes, ensuring the spouse receives a portion of the estate, even if excluded. This protects spouses from unintentional disinheritance.
The validity of testamentary trusts depends on the will. If the will is invalid, the trust cannot stand because it lacks a legal foundation. Lastly, constructive trusts are imposed by courts to remedy unjust enrichment, differing fundamentally from express trusts, which are created intentionally by the grantor with specific terms.