AFSB 153 Chapter 6 Review Exam Questions With Correct Answers
4 views 0 purchase
Course
AFSB 153
Institution
AFSB 153
AFSB 153 Chapter 6 Review Exam Questions
With Correct Answers
Describe the general guarantee under a fiduciary bond - answerGuarantees the principal will
faithfully perform all duties prescribed by law or by the courts and will demonstrate financial
responsibility for the benefit of another ind...
AFSB 153 Chapter 6 Review Exam Questions
With Correct Answers
Describe the general guarantee under a fiduciary bond - answer✔✔Guarantees the principal will
faithfully perform all duties prescribed by law or by the courts and will demonstrate financial
responsibility for the benefit of another individual or entity.
What are the 5 common responsibilities of fiduciaries? - answer✔✔1. Administering property or
managing financial matters.
2. Promptly advise distributies of fiduciary appointments
3. Prepare and file an inventory and valuation of decedents property
4. Take possession of the estate or leave it with the party to be determined
5. Take the steps that are reasonably necessary to manage, protect, and preserve the estate.
Describe the authority of fiduciaries in handling an estate. Can they hire anyone? Does this need
approval? - answer✔✔Fiduciaries can perform the decedents or other beneficiaries contract,
prosecute and settle claims, and set or propose reasonable admin fees for themselves and others.
When appropriate appropriate, fiduciaries can hire lawyers, accountants, managers and others to
assist. Court must approve of significant discretionary actions.
What are 3 breaches of duty for which a fiduciary can be held liable? - answer✔✔1. Failure to
deal with trust assets in a prudent manner.
2. Failure to use special skills for which the fiduciary was appointed.
3. Dealing with insiders or others for personal benefit.
Describe the purposes of the Uniform Probate Code - answer✔✔Reduces the cost of estate
administrators by eliminating the need for fiduciary bonds in most states.
When does the Uniform Probate Code (UPC) require a fiduciary bond? - answer✔✔UPC
Requires a fiduciary bond only when a will requires one, a 3rd party with a financial interests in
the estate requests on, or a special fiduciary is appointed
Identify the 7 major duties of administrators and executors - answer✔✔1. Give notice to the
creditors
2. Collect estate assets
3. Complete inventory of the estates
4. Pay claims against the estate
5. Account for all receipts, disbursements and Assets managed
6. Distribute estate assets
7. Apply to court for discharge of admin duties
What/who is an administrator de bonis non (d.b.n) - answer✔✔Individual appointed by a probate
court to replace an original admin who died, resigned, or was discharged before completing the
estate administration.
What is the role of an administrator cum testatmento annexo - answer✔✔Individual appointed
by a probate court to admin the estate of a person who left a will but failed to appoint an
executor, or whose executor did not meet court approval or declined to serve as executor.
What is the role of an administrator cum testatmento annexo, de bonis non. -
answer✔✔Individual appointed to replace original admin cum testatmento annexo who died,
resigned, or was discharged before completing the estate administration
What is the role of an administrator pendente lite? - answer✔✔Individual appointed by a probate
court to temporarily preserve the assets of a decedents estate when the will is contested and
executor cannot qualify, or when a regular or permanent admin cannot be appointed for some
other reason
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
