Which of the Following Is Generally Not Required for the Testator

question 53

Multiple Choice

Which of the following is generally not required for the testator to have testamentary capacity?

• A) The testator knows the exact value of his or her estate.
• B) The testator understands the writing to be a will.
• C) The testator has a reasonable appreciation of the identity of relatives and friends.
• D) The testator has a reasonable appreciation of the extent of the property that may exist at death.

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Definitions:

Note

Unsecured debt, usually with a maturity under 10 years.

Protective Covenant

A clause in a financial contract that restricts certain actions of the borrower to protect the lender's interests.

Liquidity Premium

The additional return investors demand for holding a security that is not easily convertible into cash without loss of value.

CCC/CC/C Credit Ratings

Credit ratings given by rating agencies to denote high-risk bonds that are likely to default.