LU 8 Bus Law Wills & Commercial Paper Part 1

Match the following

• Settlor

• The person establishing the trust

• Residuary Estate

• The balance of the estate that remains after all of the individual gifts have been made

• Trustee

• One who holds title to property or another position of trust to a beneficiary.

• Testamentary Intent

• Intention of the maker of a will

What is the term used to identify a man who has made a Will?

• Beneficiary

• Testator

• Executor

• Administrator

What does it mean when a document is negotiable?

• It can be exchanged for goods or services

• It is open for discussion and can be modified

• It is transferable

• It is a formal contract that cannot be altered

Which of the following defines an ademption?

• The total sum of a person's assets and liabilities

• The withdrawal of an inheritance because the decedent did not own the property a tthe time of his death

• The act of bequeathing personal property through a will

• A legal document stating a person's final wishes regarding assets and dependents

What is required for a will to be effective in most states?

• The will must be verbally communicated.

• The will must be signed by the Testator or witnessed.

• The will must be in writing and signed to be effective.

• The will must be notarized by a legal official.

What is a Codicil?

• A legal document that revokes a will.

• A separate document used to amend or change the will, which must be signed and dated.

• A document that outlines the Testator's funeral arrangements.

• A will that is created in a foreign language.

What is a commercial paper?

• A legally binding document used to transfer property ownership

• A number of legally binding and commercially acceptable documents that are used to transfer money from one person to another

• A government-issued document for international trade

• An informal agreement between two parties for goods exchange

What happens if commercial paper is transferred to an innocent person for value?

• The original owner retains all legal rights

• The innocent person may acquire a better right to it than the transferor

• The paper becomes void and unenforceable

• The transferor is liable for any fraud

Which of the following defines a check?

• It is a written order for a bank to pay money on demand and unconditionally to the bearer of the check

• It is a written request for a bank to pay money after a certain period

• It is a legal document that requires a signature to be valid

• It is a promissory note issued by a bank

What does the phrase "Pay To The Order Of" imply on a check?

• It restricts who gets the money

• It does not restrict who gets the money and it can be paid to the payee or to whomever else he wants the money paid to

• It gives the check non-negotiability

• It indicates that the check is void