Question 1

Which of the following states the seller must give you a written statement of your right to cancel a deal within three business days if you buy a living trust in your home or somewhere other than the seller's permanent place of business (say,a hotel seminar) ?

Accepted Answer

A)  Better Business Bureau
B)  AARP
C)  American Bar Association
D)  Cooling Off Rule
E)  National Consumer Law CenterF) A) and B)
G) All of the above

Question 2

A letter of last instruction can provide your heirs with important information,such as the details of your funeral arrangements.

Accepted Answer

A) True 
 B)False

Question 3

A standard will costs:

Accepted Answer

A)  $100.
B)  between $100 and $200.
C)  $250.
D)  between $300 and $600.
E)  $700.F) A) and D)
G) B) and E)

Question 4

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Accepted Answer

A)  codicil.
B)  power of attorney.
C)  proxy.
D)  rider.
E)  trust.F) B) and E)
G) C) and E)

Question 5

Lucy Kelson has been selected to manage the property under a trust agreement for Rodney Peterson until he reaches the age of 30.Rodney is currently 21.In what capacity would Lucy be acting?

Accepted Answer

A)  Executrix
B)  Trustee
C)  Guardian
D)  Beneficiary
E)  AdministratorF) A) and C)
G) B) and C)

Question 6

Which of the following should prompt you to review your will?

Accepted Answer

A)  You move to a different state.
B)  You have sold property mentioned in the will.
C)  The size and composition of your estate has changed.
D)  You have married,divorced,or remarried.
E)  All of theseF) A) and E)
G) A) and C)

Question 7

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren or great-grandchildren.

Accepted Answer

A) True 
 B)False

Question 8

If only a few changes are needed in your will,adding a codicil may be the best choice.

Accepted Answer

A) True 
 B)False

Question 9

When death occurs,proof of claims must be produced or the claims will not be processed.

Accepted Answer

A) True 
 B)False

Question 10

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Accepted Answer

A) True 
 B)False

Question 11

A disclaimer trust is designed for the couple who do not yet have enough assets to need a credit-shelter trust but may need one in the future.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would keep you from being an executor of a will?

Accepted Answer

A)  Being in the military
B)  Being 16 years of age
C)  Being unmarried
D)  Being over 65 years of age
E)  Being a family member of the deceasedF) A) and E)
G) B) and E)

Question 13

The cost of preparing a will varies from place to place.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the creator of a trust?

Accepted Answer

A)  Estate
B)  Trustee
C)  Grantor
D)  Beneficiary
E)  SurvivorF) A) and C)
G) A) and D)

Question 15

According to a recent American Association of Retired Persons survey,over 50 percent of Americans age 45 or older have not drawn up a will.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a true statement about a holographic will?

Accepted Answer

A)  It is handwritten.
B)  It should be dated in your own handwriting.
C)  It is always prepared by an attorney.
D)  It should be signed in your own handwriting.
E)  Some states may not recognize it.F) B) and E)
G) All of the above

Question 17

Which of the following is true if you are an unmarried couple?

Accepted Answer

A)  A partner has the same legal rights as a spouse.
B)  Unmarried couples can use the marital deduction.
C)  Estate planning is less important for unmarried couples.
D)  If your partner is not named as the beneficiary,your pension plan proceeds will go to your closest blood relative.
E)  Your partner will always receive your pension even if not named as the beneficiary.F) A) and D)
G) A) and C)

Question 18

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Accepted Answer

A) True 
 B)False

Question 19

If you never married,you don't need to organize your financial affairs.

Accepted Answer

A) True 
 B)False

Question 20

A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a(n) :

Accepted Answer

A)  letter of last instruction.
B)  ethical will.
C)  prenuptial agreement.
D)  codicil.
E)  pourover will.F) B) and C)
G) A) and B)

Exam 19: Estate Planning

If you never married,you don't need to organize your financial affairs.

Correct AnswerverifiedShow Answer

Which of the following is true if you are an unmarried couple?

Correct AnswerverifiedShow Answer

When death occurs,proof of claims must be produced or the claims will not be processed.

Correct AnswerverifiedShow Answer

A standard will costs:

Correct AnswerverifiedShow Answer

Lucy Kelson has been selected to manage the property under a trust agreement for Rodney Peterson until he reaches the age of 30.Rodney is currently 21.In what capacity would Lucy be acting?

Correct AnswerverifiedShow Answer

The cost of preparing a will varies from place to place.

Correct AnswerverifiedShow Answer

Which of the following is the creator of a trust?

Correct AnswerverifiedShow Answer

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Correct AnswerverifiedShow Answer

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Correct AnswerverifiedShow Answer

A letter of last instruction can provide your heirs with important information,such as the details of your funeral arrangements.

Correct AnswerverifiedShow Answer

Which of the following is not a true statement about a holographic will?

Correct AnswerverifiedShow Answer

Which of the following would keep you from being an executor of a will?

Correct AnswerverifiedShow Answer

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Correct AnswerverifiedShow Answer

Which of the following states the seller must give you a written statement of your right to cancel a deal within three business days if you buy a living trust in your home or somewhere other than the seller's permanent place of business (say,a hotel seminar) ?

Correct AnswerverifiedShow Answer

If only a few changes are needed in your will,adding a codicil may be the best choice.

Correct AnswerverifiedShow Answer

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren or great-grandchildren.

Correct AnswerverifiedShow Answer

Which of the following should prompt you to review your will?

Correct AnswerverifiedShow Answer

According to a recent American Association of Retired Persons survey,over 50 percent of Americans age 45 or older have not drawn up a will.

Correct AnswerverifiedShow Answer

A disclaimer trust is designed for the couple who do not yet have enough assets to need a credit-shelter trust but may need one in the future.

Correct AnswerverifiedShow Answer

A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a(n) :

Correct AnswerverifiedShow Answer

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