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PPC1 Probate & Tax study materials
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PPC1 Probate & Tax practice questions

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Question 1Probate and Estate Administration Fundamentals

Which document typically governs the distribution of a deceased person's probate estate when the person dies intestate?

  1. The most recent will drafted by the decedent
  2. The state's intestacy statute Correct answer.
  3. A trust agreement signed by the decedent
  4. The beneficiary designations on retirement accounts

Explanation

When a person dies without a valid will, the probate estate passes under the state's intestacy statute, which sets a default scheme of distribution to heirs. A will, trust, or account designation would only control if it validly existed and applied.

Question 2Probate and Estate Administration Fundamentals

A personal representative's primary duty in administering an estate is best described as:

  1. Distributing assets immediately upon appointment
  2. Maximizing the inheritance of the eldest child
  3. Investing estate funds in high-risk securities to grow value
  4. Collecting and managing estate assets for the benefit of creditors and beneficiaries Correct answer.

Explanation

A personal representative is a fiduciary who must marshal, manage, and account for estate assets, pay valid debts and taxes, and then distribute the remainder to beneficiaries. The role is not to favor one heir or to speculate with estate property.

Question 3Probate and Estate Administration Fundamentals

Which of the following assets generally passes outside of probate?

  1. A checking account with no payable-on-death designation
  2. Real property titled solely in the decedent's name
  3. Tangible personal property listed in the will
  4. A life insurance policy with a named beneficiary Correct answer.

Explanation

Assets with a valid beneficiary designation, such as life insurance payable to a named person, pass by contract directly to the beneficiary and bypass probate. Solely owned property and property passing under the will are subject to probate administration.

Question 4Probate and Estate Administration Fundamentals

The term 'testate' means that a decedent:

  1. Died with an open bankruptcy case
  2. Died leaving a valid will Correct answer.
  3. Died owning only nonprobate assets
  4. Died without any heirs

Explanation

A testate decedent died leaving a valid will, so the estate is administered according to its terms (subject to law). Intestate refers to dying without a valid will.

Question 5Probate and Estate Administration Fundamentals

Which party has priority to be appointed as personal representative when the decedent left a will naming an executor?

  1. The youngest surviving child
  2. The person nominated in the will, if qualified and willing Correct answer.
  3. The state treasurer
  4. The largest creditor of the estate

Explanation

A testator may nominate an executor in the will, and courts generally honor that nomination if the nominee is qualified and willing to serve. Creditors, state officials, and heirs do not displace a valid nomination absent disqualification.

Question 6Probate and Estate Administration Fundamentals

A surety bond required of a personal representative primarily protects:

  1. The attorney drafting the will
  2. Interested persons such as creditors and beneficiaries Correct answer.
  3. The decedent's business partners
  4. The funeral home

Explanation

A fiduciary bond provides a source of recovery for interested persons, including beneficiaries and creditors, if the personal representative mishandles estate assets. It does not insure business partners or service providers.

Question 7Probate and Estate Administration Fundamentals

Which of the following is generally a valid reason a court may remove a personal representative?

  1. The representative committed a material breach of fiduciary duty Correct answer.
  2. The representative hired a licensed accountant
  3. The representative resides in a neighboring county
  4. The representative sold estate stock at a loss during a market decline

Explanation

Courts may remove a personal representative for cause, such as a material breach of fiduciary duty, fraud, or mismanagement. Prudent professional hiring, market-driven losses, or ordinary residence usually are not grounds for removal.

Question 8Probate and Estate Administration Fundamentals

In most jurisdictions, the order of priority for payment of estate obligations places which item first?

  1. Residual gifts to charities
  2. General unsecured credit card debt
  3. Specific bequests to friends
  4. Administration expenses and funeral costs Correct answer.

Explanation

Administration expenses and reasonable funeral costs generally have high priority and are paid before general unsecured debts and before distributions to beneficiaries. Bequests and residual gifts are paid only from what remains.

Question 9Probate and Estate Administration Fundamentals

Under a typical nonclaim statute, a creditor who fails to present a timely claim against the estate generally:

  1. Automatically receives double payment
  2. May collect directly from the beneficiaries without limit
  3. Forces the personal representative to pay personally
  4. Loses the right to enforce the claim against the estate Correct answer.

Explanation

Nonclaim statutes set deadlines for presenting claims; a creditor who misses the deadline is generally barred from enforcing the claim against the estate. The claim is not doubled, and beneficiaries or the representative are not automatically liable.

Question 10Probate and Estate Administration Fundamentals

Which of the following best describes the purpose of probate administration?

  1. To punish heirs who contest the will
  2. To establish title to assets, pay debts and taxes, and distribute the estate Correct answer.
  3. To avoid paying federal estate tax
  4. To transfer all assets to the state

Explanation

Probate provides a court-supervised process to validate the will, establish title to assets, resolve creditor claims, pay taxes, and distribute the remaining property. It is not a punitive or revenue-avoidance mechanism.

Question 11Probate and Estate Administration Fundamentals

A decedent's will leaves 'my antique clock to my sister.' This type of gift is called a:

  1. Residuary devise
  2. Specific bequest Correct answer.
  3. Demonstrative legacy
  4. General devise

Explanation

A gift of a specifically identified item of tangible personal property is a specific bequest (or specific legacy). It differs from a general gift payable from the estate at large or a residuary gift of what remains.

Question 12Probate and Estate Administration Fundamentals

If a specific bequeathed item is no longer in the estate at death and was not sold to pay debts, the beneficiary generally:

  1. Receives double the item's value
  2. Receives an equivalent item chosen by the executor
  3. Receives nothing under the ademption doctrine Correct answer.
  4. Receives the item's fair market value in cash

Explanation

Under the doctrine of ademption, a specific bequest fails if the identified property is not part of the estate at death. The beneficiary generally receives nothing in its place unless a statute provides an exception.

Question 13Probate and Estate Administration Fundamentals

A beneficiary named in a will dies before the testator. Absent an anti-lapse statute, the gift generally:

  1. Lapses and falls into the residue Correct answer.
  2. Passes to the personal representative personally
  3. Passes to the state as a penalty
  4. Passes to the deceased beneficiary's estate

Explanation

At common law, a gift to a beneficiary who predeceases the testator lapses and typically falls into the residuary estate unless an anti-lapse statute saves it. The lapsed gift does not go to the representative or the state in ordinary circumstances.

Question 14Probate and Estate Administration Fundamentals

A codicil is best described as:

  1. A court order admitting a will to probate
  2. A separate trust instrument
  3. A contract to make a will
  4. A later document that modifies an existing will Correct answer.

Explanation

A codicil is a testamentary document executed with will formalities that amends or supplements an existing will. It is not a trust, a court order, or a contract.

Question 15Probate and Estate Administration Fundamentals

Which requirement is generally essential to the valid execution of a formal attested will?

  1. Filing with the probate court during the testator's life
  2. Signature by the testator and witnesses as required by statute Correct answer.
  3. Notarization in every jurisdiction
  4. Approval by all heirs before death

Explanation

A formal will generally requires the testator's signature and the signatures of the number of witnesses the statute requires, along with testamentary intent and capacity. Notarization is not universally required, and heir approval or lifetime filing is not required.

Question 16Probate and Estate Administration Fundamentals

A testator lacks testamentary capacity if, at the time of execution, the testator:

  1. Is over age 80
  2. Cannot understand the nature of the act, the property, or the natural objects of bounty Correct answer.
  3. Has a different religion than the witnesses
  4. Has a physical disability

Explanation

Testamentary capacity requires the testator to understand the nature of the testamentary act, the extent of the property, and the natural objects of bounty, and to form a coherent plan. Physical disability, advanced age, or religious difference alone does not defeat capacity.

Question 17Probate and Estate Administration Fundamentals

Undue influence in the execution of a will generally means that:

  1. A beneficiary substituted their own intent for the testator's free will Correct answer.
  2. The witnesses disagreed about the will's contents
  3. The testator made an unfair but voluntary choice
  4. The will was typed rather than handwritten

Explanation

Undue influence exists when a person overcomes the testator's free will so that the resulting will reflects the influencer's intent rather than the testator's. Unfairness alone, witness disagreement, or the format of the document does not establish undue influence.

Question 18Probate and Estate Administration Fundamentals

A holographic will is one that is:

  1. Written in a foreign language
  2. Entirely in the testator's handwriting and typically unwitnessed Correct answer.
  3. Oral and made before three witnesses
  4. Prepared by an attorney and notarized

Explanation

A holographic will is handwritten by the testator, often without witnesses, and is recognized in some jurisdictions with specific requirements. It is not defined by attorney preparation, orality, or language.

Question 19Probate and Estate Administration Fundamentals

In many jurisdictions, a surviving spouse may claim an elective share in order to:

  1. Invalidate all premarital agreements
  2. Avoid paying estate tax
  3. Take priority over all secured creditors
  4. Receive a fixed minimum portion of the estate despite the will Correct answer.

Explanation

The elective share protects a surviving spouse by allowing a claim to a statutory minimum portion of the estate regardless of the will's terms. It does not void valid agreements, override secured liens, or eliminate taxes.

Question 20Probate and Estate Administration Fundamentals

A small estate administered by a simplified or summary procedure is typically available when:

  1. The estate value falls below a statutory threshold Correct answer.
  2. The will was drafted by an attorney
  3. The decedent owned real property in three states
  4. A beneficiary requests a jury trial

Explanation

Many jurisdictions offer simplified administration for estates whose value is below a statutory threshold, reducing paperwork and court involvement. Multi-state real property or the identity of the drafter does not trigger the procedure.

Question 21Probate and Estate Administration Fundamentals

Ancillary probate is generally required when:

  1. The will was signed in pencil
  2. The estate has no creditors
  3. The decedent had more than two children
  4. The decedent owned real property located in another state Correct answer.

Explanation

When a nonresident decedent owns real property in a state, that state usually requires a separate ancillary probate proceeding to establish title and transfer the property. Family size, creditor status, and writing instrument do not trigger ancillary probate.

Question 22Probate and Estate Administration Fundamentals

Which of the following best describes the difference between a guardian and a conservator (in jurisdictions that use both terms)?

  1. Both terms always mean the same thing by statute
  2. A guardian acts only after death; a conservator acts only during life
  3. A guardian manages personal care; a conservator manages financial affairs Correct answer.
  4. A guardian manages assets; a conservator manages personal care

Explanation

In jurisdictions using both terms, a guardian typically handles personal care and welfare decisions, while a conservator manages financial affairs and property. The roles address different needs, and neither applies only after death.

Question 23Probate and Estate Administration Fundamentals

A durable power of attorney differs from an ordinary power of attorney primarily because it:

  1. Remains effective if the principal becomes incapacitated Correct answer.
  2. Requires court approval to be effective
  3. Can only be used after the principal dies
  4. Must be signed by the agent rather than the principal

Explanation

A durable power of attorney survives the principal's incapacity, which is its defining feature, while an ordinary power of attorney typically terminates on incapacity. It is signed by the principal and does not operate after death.

Question 24Probate and Estate Administration Fundamentals

Which of the following statements about the probate of a will is most accurate?

  1. Probate is required for every asset the decedent owned
  2. Probate validates the will and appoints a personal representative Correct answer.
  3. Probate transfers all assets to the state
  4. Probate automatically voids all creditor claims

Explanation

Probate is the court process that establishes the will's validity and appoints a personal representative to administer the estate. It does not void valid claims, escheat assets generally, or reach nonprobate assets.

Question 25Probate and Estate Administration Fundamentals

A personal representative discovers that the decedent made a substantial inter vivos gift shortly before death while incapacitated. The representative's most appropriate course is to:

  1. Distribute the remaining estate immediately
  2. Ignore the transfer because it occurred before death
  3. Pay the transfer recipient from estate funds as compensation
  4. Investigate the transfer and seek recovery if it resulted from undue influence or lack of capacity Correct answer.

Explanation

A fiduciary has a duty to marshal estate assets and may need to investigate and pursue recovery of property improperly transferred due to incapacity, undue influence, or fraud. Ignoring the transfer or paying the recipient could breach fiduciary duties.

Question 26Probate and Estate Administration Fundamentals

Which of the following is the primary function of a personal representative's inventory?

  1. To nominate an executor for the estate
  2. To pay the decedent's outstanding debts
  3. To identify and list the decedent's assets and liabilities as of death Correct answer.
  4. To distribute estate assets to the beneficiaries

Explanation

The inventory is a court-required document that lists the decedent's assets and liabilities, providing a snapshot of the estate for administration. It does not itself distribute assets or pay debts; those are separate steps in the probate process.

Question 27Probate and Estate Administration Fundamentals

In the context of probate, what does the term 'intestate' mean?

  1. The decedent's will has been contested
  2. The decedent died without a valid will Correct answer.
  3. The decedent's estate is too small for probate
  4. The decedent left a valid will

Explanation

Intestate refers to dying without a valid will, in which case the estate is distributed according to the state's intestacy laws. Testate means dying with a valid will.

Question 28Probate and Estate Administration Fundamentals

Which of the following is a typical duty of a personal representative during estate administration?

  1. To collect and safeguard the decedent's assets Correct answer.
  2. To provide legal advice to the beneficiaries
  3. To draft the decedent's will
  4. To serve as a witness to the will

Explanation

A personal representative is responsible for gathering, protecting, and managing the estate's assets during administration. Drafting the will or witnessing it occurs before death, and giving legal advice is outside the representative's role.

Question 29Probate and Estate Administration Fundamentals

What is the effect of a court formally admitting a will to probate?

  1. The will's validity is established and the estate can be administered Correct answer.
  2. The will is immediately distributed to the beneficiaries
  3. The will becomes a public record and is subject to contest
  4. The will is automatically invalidated if any beneficiary objects

Explanation

Admission to probate is a judicial determination that the will is valid, allowing the personal representative to administer the estate. It does not automatically distribute assets or invalidate the will upon objection.

Question 30Probate and Estate Administration Fundamentals

A personal representative commingles estate funds with personal funds. This conduct is a breach of which fiduciary duty?

  1. Duty to account
  2. Duty of confidentiality
  3. Duty to segregate assets Correct answer.
  4. Duty of impartiality

Explanation

The duty to segregate assets requires the personal representative to keep estate property separate from personal property. Commingling is a breach of this duty and can lead to liability for any losses.

Question 31Probate and Estate Administration Fundamentals

In a jurisdiction that has adopted the Uniform Probate Code, which of the following is true regarding a spouse's elective share?

  1. The elective share is automatically one-half of the estate regardless of length of marriage
  2. The elective share must be claimed within 30 days of the will's admission to probate
  3. The elective share amount may be supplemented by a homestead allowance and family allowance Correct answer.
  4. The elective share is available only if the will explicitly provides for the spouse

Explanation

Under the UPC, the surviving spouse may receive the elective share plus exempt property, a homestead allowance, and a family allowance. The elective share is not automatically one-half; it is based on a percentage that varies with the length of marriage, and it exists to protect the spouse against disinheritance.

Question 32Probate and Estate Administration Fundamentals

A will contains a clause leaving 'the residue of my estate to my children.' The decedent's estate includes a house specifically devised to a friend. How is the residue calculated?

  1. The residue is calculated after subtracting specific and general gifts, debts, and expenses Correct answer.
  2. The residue is the same as the gross estate for tax purposes
  3. The residue includes all assets, including the house, because specific gifts fail if residue is insufficient
  4. The residue is calculated before debts and expenses are paid

Explanation

Residuary beneficiaries receive what remains after specific gifts, general gifts, debts, taxes, and administration expenses are satisfied. The residue is not the gross estate and does not include specifically devised property.

Question 33Probate and Estate Administration Fundamentals

A personal representative sells estate real property without the required court approval. The sale is otherwise commercially reasonable. What is the most likely consequence?

  1. The personal representative may be surcharged for any loss, but the sale is valid as to third parties Correct answer.
  2. The sale is voidable at the election of the purchaser
  3. The sale is automatically ratified if the beneficiaries do not object within 30 days
  4. The sale is void because court approval is a condition precedent

Explanation

When a personal representative acts without required court approval, the representative may be personally liable for any loss (surcharge), but the sale is generally valid as to good-faith third parties. The representative bears the risk of the procedural defect.

Question 34Probate and Estate Administration Fundamentals

Which of the following best describes the purpose of a family allowance during estate administration?

  1. To fund the elective share for the surviving spouse
  2. To reimburse the personal representative for expenses
  3. To provide support for the decedent's dependents during the probate process Correct answer.
  4. To pay the decedent's outstanding debts

Explanation

A family allowance is intended to support the decedent's spouse and dependent children during the administration of the estate, preventing hardship while assets are tied up. It is separate from the elective share and from debt payment.

Question 35Probate and Estate Administration Fundamentals

A decedent's will leaves a specific gift of a car to a friend, but the car was sold by the decedent before death and the proceeds are in the estate. Under the doctrine of ademption by extinction, what happens to the gift?

  1. The friend receives the proceeds from the sale of the car
  2. The gift is converted into a general gift payable from the residue
  3. The friend receives a comparable car from the estate
  4. The friend receives nothing because the specific asset no longer exists Correct answer.

Explanation

Ademption by extinction occurs when specifically bequeathed property is not in the estate at death, and the beneficiary typically receives nothing. The beneficiary does not receive sale proceeds unless the will provides otherwise or a statute alters the rule.

Question 36Probate and Estate Administration Fundamentals

Which of the following is a key difference between a formal probate administration and an informal probate administration?

  1. Informal probate is only available for testate estates
  2. Informal probate requires a court hearing, while formal probate does not
  3. Formal probate is available only for small estates
  4. Formal probate involves judicial supervision and notice to interested parties, while informal probate is administrative Correct answer.

Explanation

Formal probate involves court oversight, including hearings and formal notice, whereas informal probate is an administrative process handled by a registrar without immediate court involvement. Both can be available for testate and intestate estates, depending on jurisdiction.

Question 37Probate and Estate Administration Fundamentals

A personal representative is also a beneficiary under the will. Which of the following is generally true regarding the representative's compensation?

  1. The representative may receive commissions only if the will expressly authorizes them
  2. The representative may receive both statutory commissions and a beneficial share without limitation
  3. The representative's commissions are automatically forfeited if the representative is a beneficiary
  4. The representative must choose between taking commissions and taking the beneficial gift Correct answer.

Explanation

In many jurisdictions, a personal representative who is also a beneficiary may not receive both statutory commissions and a beneficial gift; the representative must elect one. This rule prevents double recovery from the estate.

Question 38Probate and Estate Administration Fundamentals

In the context of probate, what is a 'devise'?

  1. A gift of personal property in a will
  2. The process of proving a will
  3. A gift of real property in a will Correct answer.
  4. A clause revoking prior wills

Explanation

Historically, a devise refers to a gift of real property in a will, while a bequest refers to personal property. Modern usage sometimes uses the terms interchangeably, but the traditional distinction remains in many jurisdictions.

Question 39Probate and Estate Administration Fundamentals

A trustee is directed to hold property for a beneficiary and distribute income annually. The trustee uses trust funds to pay personal expenses. Which cause of action is most appropriate?

  1. A claim for ademption of a specific gift
  2. A breach of fiduciary duty claim for misappropriation Correct answer.
  3. A will contest based on undue influence
  4. A petition to admit the will to probate

Explanation

Using trust funds for personal expenses is a breach of the trustee's fiduciary duty, specifically the duty of loyalty. The appropriate remedy is a claim for breach of fiduciary duty, which may include surcharge and removal.

Question 40Probate and Estate Administration Fundamentals

A will contains a simultaneous death clause. The testator and the primary beneficiary die in a common accident, and the order of death cannot be determined. What is the effect of the clause?

  1. The clause is invalid and the estate passes by intestacy
  2. The testator is presumed to have survived the beneficiary
  3. The estate is distributed as if the beneficiary predeceased the testator Correct answer.
  4. The beneficiary is presumed to have survived the testator

Explanation

A simultaneous death clause typically provides that the beneficiary is deemed to have predeceased the testator if the order of death cannot be established. This prevents the beneficiary's estate from taking the gift and directs the property according to the will's alternative provisions.

Question 41Intestate Succession and Wills

A person dies intestate leaving a surviving spouse and two surviving children, with no other issue. Under the Uniform Probate Code intestacy scheme, how is the estate distributed?

  1. The spouse takes the first $X plus one-half of the balance, with children taking the remainder.
  2. The spouse takes the entire estate. Correct answer.
  3. The spouse takes one-third and the children share two-thirds.
  4. The spouse takes one-half and the children share one-half.

Explanation

Under the UPC, when the decedent leaves a surviving spouse and descendants who are all also descendants of that spouse, the spouse takes the entire intestate estate. The rationale is that the surviving spouse is presumed to provide for the couple's shared children.

Question 42Intestate Succession and Wills

A testator's will contains a clause leaving 'my residence to my sister, and the remainder of my estate to my brother.' The sister predeceases the testator. What is the presumptive result under the common law anti-lapse doctrine if the sister left surviving issue?

  1. The residence passes to the sister's surviving issue. Correct answer.
  2. The residence passes to the brother as residuary beneficiary.
  3. The gift lapses and the residence escheats to the state.
  4. The residence passes by intestacy to the testator's heirs.

Explanation

The anti-lapse statute typically saves a gift to a predeceased beneficiary who is a kindred of the testator and leaves surviving issue, passing the gift to that issue. The gift does not fall into the residue.

Question 43Intestate Succession and Wills

Which of the following best describes a holographic will?

  1. A will executed orally before witnesses.
  2. A will prepared by an attorney and signed by the testator.
  3. A will entirely in the testator's handwriting and signed by the testator, without witnesses. Correct answer.
  4. A will signed by the testator and two witnesses.

Explanation

A holographic will is one written entirely in the testator's own hand and signed by the testator; most jurisdictions do not require attesting witnesses. It is distinguished from a formal attested will.

Question 44Intestate Succession and Wills

A testator executes a valid will leaving everything to 'my beloved wife, Alice.' The testator later divorces Alice, and the divorce is finalized before the testator's death. Under most modern statutes, what is the effect on the will's provision for Alice?

  1. The provision is void and the entire will is invalid.
  2. The provision remains valid because the will was not revoked.
  3. The provision is revoked by operation of law upon divorce. Correct answer.
  4. The provision passes to Alice as a pretermitted heir.

Explanation

Most statutes revoke provisions for a former spouse upon divorce, treating the former spouse as having predeceased the testator for purposes of that will. The remainder of the will is unaffected.

Question 45Intestate Succession and Wills

Which of the following is required for a valid formal (attested) will?

  1. Acknowledgment of the will before two witnesses who sign in the testator's presence. Correct answer.
  2. Approval by the testator's heirs.
  3. Filing with the probate court before the testator's death.
  4. Notarization by a public official.

Explanation

A formal will requires a writing signed by the testator and attested by at least two witnesses who sign in the testator's presence (or as the statute requires). Notarization and court filing are not generally required for validity.

Question 46Intestate Succession and Wills

A person dies intestate with no surviving spouse, no descendants, and no parents, but with two surviving siblings and the children of a predeceased sibling. Under the UPC, how is the estate distributed?

  1. The surviving siblings and the predeceased sibling's children all share equally per capita.
  2. The surviving siblings take equal shares, and the predeceased sibling's children split that sibling's share by representation. Correct answer.
  3. The surviving siblings take the entire estate equally.
  4. The entire estate passes to the predeceased sibling's children.

Explanation

Under the UPC's representation scheme, the decedent's siblings take equal shares, and the children of a predeceased sibling divide the share their parent would have taken. This is per stirpes representation among the first generation of descendants.

Question 47Intestate Succession and Wills

A will states: 'I leave my antique clock to my friend, Robert.' Robert is already dead when the will is executed. What is the result?

  1. The gift passes to Robert's estate.
  2. The gift passes to Robert's children under the anti-lapse statute.
  3. The gift is valid and Robert's heirs take the clock.
  4. The gift is void and the clock passes to the residuary beneficiary. Correct answer.

Explanation

A gift to a beneficiary who is already deceased at the time the will is executed is void from the outset. Anti-lapse statutes generally do not apply because the beneficiary was not alive when the will was made.

Question 48Intestate Succession and Wills

Which of the following best describes the doctrine of dependent relative revocation?

  1. A revocation conditioned on a mistaken belief is ineffective if the testator would not have revoked but for the mistake. Correct answer.
  2. A will is revoked when the testator physically destroys it.
  3. A will is revoked by operation of law when the testator marries.
  4. A later will revokes an earlier will only if the later will is valid.

Explanation

Dependent relative revocation treats a revocation as conditional when it was based on a mistaken assumption, such as the validity of a replacement will. If the mistake is established, the original will may be revived.

Question 49Intestate Succession and Wills

A testator leaves 'the sum of $50,000 to my nephew, James.' The testator's estate is worth $40,000 at death. What is the result?

  1. James receives nothing because the estate is insufficient.
  2. James receives the entire $40,000, and the gift is abated. Correct answer.
  3. James receives $50,000 from the testator's heirs.
  4. James receives $40,000 and the estate is insolvent.

Explanation

A general legacy that exceeds the available estate abates, and the beneficiary takes what remains after higher-priority claims. The beneficiary does not receive more than the estate holds.

Question 50Intestate Succession and Wills

A testator executes a will leaving a specific devise of 'my 2018 Honda Accord' to a friend. The testator later sells the Honda and buys a 2020 Toyota. The testator dies owning the Toyota. What is the result under the common law ademption doctrine?

  1. The friend takes the Toyota as a substitute.
  2. The friend takes the value of the Honda from the residue.
  3. The friend takes the Toyota only if the will is reformed.
  4. The friend takes nothing because the specific devise adeemed. Correct answer.

Explanation

Under traditional ademption, a specific devise of property the testator no longer owns at death fails. The beneficiary is not entitled to substitute property or its value unless a statute provides otherwise.