1. A "Probate" is:
A trust deed.
A legal heir certificate.
A type of tax.
A copy of the Will certified under the seal of a court of competent jurisdiction.
Explanation:
Probate is the official proof of the validity of the Will and the executor's authority to administer the estate. It is mandatory for Wills executed in certain presidential towns involving immovable property.
2. A "Durable Power of Attorney" differs from a general POA because:
It can only be used for real estate.
It remains valid even if the principal becomes mentally incapacitated.
It is valid only for 1 year.
It expires when the principal becomes incapacitated.
Explanation:
A standard POA ceases if the principal loses mental capacity. A Durable POA contains a specific clause allowing it to continue, which is crucial for managing the affairs of elderly clients.
3. In a "Private Trust", the person who creates the trust and transfers assets into it is called the:
Beneficiary
Settlor / Author
Executor
Trustee
Explanation:
The Settlor (or Author/Grantor) creates the trust. The Trustee manages it. The Beneficiary receives the benefits. This structure helps in protecting assets and managing succession.
4. If a Hindu male dies "Intestate" (without a Will), his property is distributed according to:
The wishes of his eldest son.
The Indian Contract Act.
The Hindu Succession Act, 1956 (Class I heirs first).
The discretion of the Bank Manager.
Explanation:
In case of Intestacy, the law determines the heirs. For Hindus, Class I heirs (Mother, Widow, Children) have the first right to the property.
5. In a Hindu Undivided Family (HUF), who has the right to demand a "Partition"?
Any Coparcener (including daughters).
Only the Karta.
No one.
Only male members.
Explanation:
Any coparcener can demand partition of the HUF property. After the 2005 Amendment, daughters are coparceners and have the same rights as sons.
6. The person appointed by a testator in their Will to administer their estate and carry out their wishes is called the:
Trustee
Beneficiary
Administrator
Executor
Explanation:
An Executor is named in the Will. If no executor is named, the court appoints an "Administrator". The Executor derives authority from the Will itself.
7. Can a Hindu Undivided Family (HUF) make a Will?
Yes, if all members agree.
Yes, for movable property only.
No, because HUF is not an individual and has perpetual succession.
Yes, the Karta can make a Will for the entire HUF property.
Explanation:
A Will is a testamentary document of an individual. An HUF continues to exist even after the death of the Karta. Individual coparceners can bequeath their *share* in the HUF, but the HUF itself cannot make a Will.
8. Does a Power of Attorney (POA) remain valid after the death of the Principal?
Yes, if it is a Durable POA.
No, it stands automatically revoked.
Yes, for 6 months.
Yes, indefinitely.
Explanation:
A POA is an agency relationship. The authority of the Agent dies with the Principal. The legal heirs must take over.
9. A "Succession Certificate" is required to claim:
Immovable Property (Land/House).
Agricultural Land.
Movable Assets like Bank Deposits, Shares, and Securities where no nomination exists.
Insurance Policy with nomination.
Explanation:
Succession Certificate validates the heirs' right to collect debts/securities due to the deceased. For Immovable property, a "Letter of Administration" or Probate is usually needed, or simple mutation based on legal heirship.
10. If there is a conflict between a "Nominee" in a bank account and a "Legal Heir" mentioned in a Will, who has the final beneficial ownership of the money?
The Nominee.
The Legal Heir.
The Bank keeps the money.
It is shared equally.
Explanation:
A Nominee is merely a trustee/custodian who receives the money from the bank to discharge the bank. The ultimate owner is the Legal Heir as per the Will or Succession Law.
11. Since the 2005 Amendment to the Hindu Succession Act, a daughter:
Can be a member but not seek partition.
Is a coparcener by birth in her own right, with the same liabilities as a son.
Cannot be a coparcener.
Loses rights after marriage.
Explanation:
This amendment was a landmark step for gender equality, granting daughters equal coparcenary rights in HUF property.
12. A Trustee has a "Fiduciary Duty" towards the beneficiaries. This means the trustee must:
Delegate all duties to others.
Mix trust funds with personal funds.
Profit from the trust assets.
Act in the best interest of the beneficiaries and avoid conflict of interest.
Explanation:
A fiduciary relationship implies the highest standard of care and loyalty. The trustee must manage the trust property solely for the benefit of the beneficiaries, not for personal gain.
13. A "Living Will" (Advance Medical Directive) allows a person to:
Appoint a guardian for children.
Transfer shares.
Specify medical treatment preferences (e.g., withdrawal of life support) in case they become terminally ill and unable to communicate.
Distribute property while alive.
Explanation:
Unlike a normal Will (for property), a Living Will deals with health decisions (Right to die with dignity/Passive Euthanasia), recognized by the Supreme Court of India.
14. Can a minor be a beneficiary in a Trust?
No, never.
Yes.
Only after turning 18.
Only if the trustee consents.
Explanation:
A beneficiary is the person for whose benefit the trust is created. A minor, being incompetent to contract, cannot be a trustee but can certainly be a beneficiary.
15. The primary duty of an "Executor" of a Will is to:
Change the Will.
Pay off debts/taxes of the deceased and distribute the remaining assets to beneficiaries as per the Will.
Sell all assets and keep the cash.
Use the assets for personal benefit.
Explanation:
The executor acts as a fiduciary to carry out the testator's instructions, settle liabilities, and ensure beneficiaries receive their share.
16. Upon the death of a Karta of an HUF, the HUF:
Automatically dissolves.
Becomes a partnership firm.
Must be partitioned immediately.
Continues to exist, and the next senior-most coparcener becomes the new Karta.
Explanation:
HUF has perpetual succession. It is not affected by the death of the Karta. Management passes to the next senior member.
17. In a "Revocable Trust", the Settlor (Creator) retains the right to:
Avoid all taxes permanently.
Sell the assets to the government.
Alter or cancel the trust at any time during their lifetime and reclaim the assets.
Manage the trust assets.
Explanation:
In a revocable trust, the transfer is not permanent. The Settlor can take back control. Consequently, income from such a trust is usually taxable in the hands of the Settlor (Clubbing provisions).
18. A Power of Attorney creating a right over immovable property worth ?100 or more must be:
Notarized only.
Compulsorily Registered with the Sub-Registrar.
Simply signed on plain paper.
Witnessed by a bank manager.
Explanation:
Under the Registration Act, any document (including POA) conferring authority to sell or create rights in immovable property requires mandatory registration.
19. Does India currently levy "Estate Duty" (Inheritance Tax) on the transfer of property upon death?
No, it was abolished in 1985.
Yes, 30%.
Yes, 10%.
Yes, only for properties above ?10 Crore.
Explanation:
Currently, there is no inheritance tax in India. Assets received under a Will or inheritance are also exempt from Income Tax under Section 56(2).
20. Who holds the "Legal Title" to the trust property?
The Beneficiary
The Trustee
The Settlor
The Court
Explanation:
In a Trust, the Legal Title (ownership on paper) lies with the Trustee, while the Beneficial Title (right to enjoyment) lies with the Beneficiary.
21. For a Will to be valid in India, it must be attested by at least:
Two witnesses.
A Doctor.
A Lawyer.
One witness.
Explanation:
Under the Indian Succession Act, a Will must be signed by the testator in the presence of at least two witnesses, who must also sign the Will.