NYLE TRUSTS, WILLS, AND ESTATES
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Health Care Proxy (pg. 189) - ANS Any competent adult may appoint a health care agent by a
health care proxy that is signed and dated by the adult in the presence of two adult witnesses,
who must also sign and who cannot be the appointed agent. The agent's authority commences
upon a determination that the adult lacks the capacity to make health care decisions.
Agent's Authority (pg. 189) - ANS The agent's decisions must be consistent with the known
wishes of the principal. If the principal's wishes are not reasonably known or cannot reasonably
be determined, the agency may act in accordance with the adult's best interests. However, if
the adult's wishes regarding the administration of artificial nutrition and hydration are not
reasonably known and cannot without reasonable diligence be ascertained, the agent does not
have any authority to make decisions regarding those measures.
Revocation of health care proxy (pg. 189) - ANS The proxy may be revoked by notifying the
agent or health care provider orally or in writing, by any other act evidencing a specific intent,
by execution of a subsequent health care proxy, or by divorce or legal separation from the agent
unless the principal specifies otherwise.
Power of Attorney (pg. 189) - ANS A power of attorney (POA) is a document by which a
person (the principal) gives authority to one or more other persons (the agent or agents) to
perform certain tasks or conduct business on the principal's behalf. A POA is durable unless it
expressly provides that it is terminated by the incapacity of the principal.
Statutory Short-Form POA (pg. 190) - ANS A statutory short-form POA contains a list of the
types of transactions and matters over which the principal may grant authority to the agent. In
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, order for the principal to grant the agent a listed authority, the principal must initial the bracket
preceding that specific authority.
Agent's authority to make gifts (pg. 190) - ANS Under the statutory short-form POA, an agent
may only make gifts that the principal customarily has made to individuals up to $5,000 in the
aggregate in any calendar year. If the principal wishes to grant an agent authority to make gifts
in excess of the annual total of $5,000, the principal must: (1) initial a statement in the statutory
short-form POA and (2) include a statutory gift ride in the modification section.
Standard of care (pg. 190-191) - ANS The standard of care to be exercised by the agent is
defined as "observing the standard of care that would be observed by a prudent person dealing
with the property of another." An agent's fiduciary duties include: (1) acting according to the
instructions from the prinicipal, or, where there are no instructions, in the best interest of the
principal, (2) keeping the principal's property separate and distinct from any other property, (3)
keeping a record of all receipts, disbursements, and transactions, and (4) not making gifts to
oneself without such authority being expressly granted.
Termination of POA (pg. 191) - ANS The power of attorney terminates when: (1) the principal
dies, (2) the principal becomes incapacitated, if the power of attorney is not durable, (3) the
principal revokes the power of attorney, (4) the agent dies, becomes incapacitated, or resigns,
(5) the purpose of the power of attorney is accomplished, or (6) a court order revokes the
power of attorney.
Lifetime Trust (pg. 192) - ANS A lifetime trust must be: (1) in writing, (2) executed by the
creator of the trust and at least one trustee, and (3) acknowledged in the same manner as
required for the recording of a deed, or executed in the presence of two witnesses, who must
then sign it.
Revocable Trust (pg. 193) - ANS If a lifetime trust provides that it is revocable, a grantor may
amend or revoke the trust in a writing that is executed and acknowledged with the same
formalities as the initial trust instrument. A lifetime trust is irrevocable unless the trust
instrument expressly provides that it is revocable.
Termination of a trust (pg. 194) - ANS If a trust is revocable, the creator can revoke the trust
without the consent of the beneficiaries. A court may terminate a lifetime trust if it finds that
(1) continuation of the trust is economically impracticable or (2) such termination would not
defeat the specified purpose of the trust.
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
Health Care Proxy (pg. 189) - ANS Any competent adult may appoint a health care agent by a
health care proxy that is signed and dated by the adult in the presence of two adult witnesses,
who must also sign and who cannot be the appointed agent. The agent's authority commences
upon a determination that the adult lacks the capacity to make health care decisions.
Agent's Authority (pg. 189) - ANS The agent's decisions must be consistent with the known
wishes of the principal. If the principal's wishes are not reasonably known or cannot reasonably
be determined, the agency may act in accordance with the adult's best interests. However, if
the adult's wishes regarding the administration of artificial nutrition and hydration are not
reasonably known and cannot without reasonable diligence be ascertained, the agent does not
have any authority to make decisions regarding those measures.
Revocation of health care proxy (pg. 189) - ANS The proxy may be revoked by notifying the
agent or health care provider orally or in writing, by any other act evidencing a specific intent,
by execution of a subsequent health care proxy, or by divorce or legal separation from the agent
unless the principal specifies otherwise.
Power of Attorney (pg. 189) - ANS A power of attorney (POA) is a document by which a
person (the principal) gives authority to one or more other persons (the agent or agents) to
perform certain tasks or conduct business on the principal's behalf. A POA is durable unless it
expressly provides that it is terminated by the incapacity of the principal.
Statutory Short-Form POA (pg. 190) - ANS A statutory short-form POA contains a list of the
types of transactions and matters over which the principal may grant authority to the agent. In
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, order for the principal to grant the agent a listed authority, the principal must initial the bracket
preceding that specific authority.
Agent's authority to make gifts (pg. 190) - ANS Under the statutory short-form POA, an agent
may only make gifts that the principal customarily has made to individuals up to $5,000 in the
aggregate in any calendar year. If the principal wishes to grant an agent authority to make gifts
in excess of the annual total of $5,000, the principal must: (1) initial a statement in the statutory
short-form POA and (2) include a statutory gift ride in the modification section.
Standard of care (pg. 190-191) - ANS The standard of care to be exercised by the agent is
defined as "observing the standard of care that would be observed by a prudent person dealing
with the property of another." An agent's fiduciary duties include: (1) acting according to the
instructions from the prinicipal, or, where there are no instructions, in the best interest of the
principal, (2) keeping the principal's property separate and distinct from any other property, (3)
keeping a record of all receipts, disbursements, and transactions, and (4) not making gifts to
oneself without such authority being expressly granted.
Termination of POA (pg. 191) - ANS The power of attorney terminates when: (1) the principal
dies, (2) the principal becomes incapacitated, if the power of attorney is not durable, (3) the
principal revokes the power of attorney, (4) the agent dies, becomes incapacitated, or resigns,
(5) the purpose of the power of attorney is accomplished, or (6) a court order revokes the
power of attorney.
Lifetime Trust (pg. 192) - ANS A lifetime trust must be: (1) in writing, (2) executed by the
creator of the trust and at least one trustee, and (3) acknowledged in the same manner as
required for the recording of a deed, or executed in the presence of two witnesses, who must
then sign it.
Revocable Trust (pg. 193) - ANS If a lifetime trust provides that it is revocable, a grantor may
amend or revoke the trust in a writing that is executed and acknowledged with the same
formalities as the initial trust instrument. A lifetime trust is irrevocable unless the trust
instrument expressly provides that it is revocable.
Termination of a trust (pg. 194) - ANS If a trust is revocable, the creator can revoke the trust
without the consent of the beneficiaries. A court may terminate a lifetime trust if it finds that
(1) continuation of the trust is economically impracticable or (2) such termination would not
defeat the specified purpose of the trust.
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
