PFAC PRACTICE EXAM
2 (LEGAL AND ETHICAL
ASPECTS OF
TRUSTEESHIP)
QUESTIONS WITH
COMPLETE
Evatee 10/3/24 PFAC
,PFAC PRACTICE EXAM 2 (LEGAL AND ETHICAL
ASPECTS OF TRUSTEESHIP) QUESTIONS WITH
COMPLETE SOLUTIONS!!
Which statement is not true about Ethics?
a. Fiduciaries whose license is in good standing with the Professional
Fiduciaries Bureau may be considered as alternatives to family members by
probate judges.
b. An ethical person does the right thing by conforming to professional
standards of conduct.
c. Ethical conduct is considered a "lower" standard of conduct than a legal
standard.
d. Conservators, both family members and professional fiduciaries, are
expected to adhere to the Professional Fiduciaries Code of Ethics. Answer -
Everyone appointed as a conservator, professional or not, must sign and
acknowledge Judicial Council Form GC-348 DUTIES OF CONSERVATOR AND
ACKNOWLEDGEMENT OF RECEIPT OF CONSERVATORS HANDBOOK. Answer: C
In protecting the conservatee's confidentiality, which of the following would
the conservator not do?
a. Limit information disclosure only to what is necessary and relevant.
b. Tell the conservatee's ex-wife about his terminal illness.
c. Refuse to discuss information that may be detrimental to the well-being of
the client.
d. Assist the conservatee in communicating sensitive information. Answer -
The conservator "stands in the shoes" of the conservatee. Only that
, information that is in the best interest of the conservatee should be disclosed.
Answer: B
Which one of the following is an ethical issue for the conservator?
a. Never exceeding your legal authority.
b. Taking extra money out of the conservatee's account for your expenses.
c. Thorough and accurate documentation of your conservatee's financial
matters.
d. Not being influenced by the un-ethical behavior of fellow professionals.
Answer - It's not your money. Don't touch it. Expenses for the conservatorship
estate should be paid with estate assets. Conservators who incur out of pocket
expenses must include those in their petition for fees. Answer: B
In hiring an attorney for the trust, which one of the following statements would
not be a good choice?
a. Hire an attorney with experience in trusts.
b. Get references from friends if you do not know an experienced trust
attorney.
c. Changing an attorney either in a court supervised trust requires the filing and
the court approval of a Substitution of Attorney.
d. An attorney with experience in real estate would be suitable. Answer -
Attorneys, like many professionals, specialize in specific areas of the law. There
are very few general practice attorneys. Answer: D
The administrative duties of a fiduciary do not include which statement?
a. Knowledge that, in some instances, the terms of the trust override the CA
Probate Code.
b. Terms of the trust are to be followed explicitly, even if those terms dictate
something illegal.
c. The Court will evaluate your decisions concerning trust administration.
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