Question

1) If the owners of an investment account both wish the other to keep all assets in the event that the other should die, the account should be established as a tenancy by the entirety. This statement is __________ .

a) TRUE

b) FALSE. If the intent of both parties is that ownership passes to the other owner instead of to their heirs then testamentary with the right of survivorship is the proper arrangement.

c) FALSE. If the intent of both parties is that ownership passes to the other owner instead of to their heirs then Tenancy in common is the proper arrangement.

d) FALSE. If the intent of both parties is that ownership passes to the other owner instead of to their heirs then Joint tenancy with the right of survivorship is the proper arrangement.

2) Tenancy by the entirety is a type of ownership that exists only between married couples. This statement is ______ .

a) FALSE. Marriage tenancy is only for married people

b) TRUE.  

c) FALSE. Conjugal tenancy is for... I think you know what conjugal means.

d) False. Common tenancy, as in common law marriage, is only for married couples.

3) The difference between a testamentary trust and a living trust is that a testamentary trust is is controlled by a court appointed trustee. This statement is ___________________ .

a) FALSE. It must be ratified by a judge and administered by a court appointed trustee.

b) TRUE.

c) FALSE. It is ratified by a judge exists only after probate

d) FALSE. It is created by a will and takes effect only after probate.

Answer 1

1) If the owners of an investment account both wish the other to keep all assets in the event that the other should die, the account should be established as a tenancy by the entirety. This statement is FALSE. If the intent of both parties is that ownership passes to the other owner instead of to their heirs then Joint tenancy with the right of survivorship is the proper arrangement.

2) Tenancy by the entirety is a type of ownership that exists only between married couples. This statement is TRUE Tenancy by the entirety can only occur when the owners are married to each other at the time the title is received.

3) The difference between a testamentary trust and a living trust is that a testamentary trust is is controlled by a court appointed trustee. This statement is FALSE. It is created by a will and takes effect only after probate.