Question 1

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n)  ____________ tax.

Accepted Answer

A)   estate income
B)   trust income
C)   inheritance
D)   gift
E)   estateF) B) and D)
G) A) and E)

Question 2

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Accepted Answer

A) True 
 B)False

Question 3

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million. This exemption amount passes into a trust. What type of will has Will created?

Accepted Answer

A)   Simple
B)   Traditional marital share
C)   Exemption trust
D)   Stated dollar amount
E)   LivingF) A) and C)
G) A) and D)

Question 4

Estate planning is not an essential part of retirement planning.

Accepted Answer

A) True 
 B)False

Question 5

A simple will creates lower overall taxation for all individuals.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   Having been convicted of a felony
B)   Being over 70 years of age
C)   Being married
D)   Being a coworker of the deceased
E)   Being a child of the deceasedF) B) and E)
G) A) and E)

Question 7

Estate planning has two parts. The second part of estate planning consists of:

Accepted Answer

A)   building your estate through savings.
B)   transferring your estate in the manner you have specified.
C)   deciding who should be your attorney.
D)   evaluating your assets and liabilities.
E)   buying life insurance.F) D) and E)
G) None of the above

Question 8

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) True 
 B)False

Question 9

If your beneficiary is too young or unable to handle money wisely, which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Accepted Answer

A)   A spendthrift trust
B)   A charitable lead trust
C)   A charitable reminder trust
D)   A self-declaration trust
E)   A generation-skipping trustF) B) and E)
G) A) and B)

Question 10

Probate is a legal procedure of proving a valid or invalid will.

Accepted Answer

A) True 
 B)False

Question 11

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)   Unmarried couples have less need for estate planning than married couples.
D)   Unmarried couples face formidable retirement and estate planning challenges.
E)   All of these are true about unmarried couples.F) None of the above
G) B) and C)

Question 12

You should review your will if:

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)   you have done any of the things listed in the other answers.F) C) and D)
G) A) and B)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Perhaps the most popular form of marital trust is the Q-TIP trust.

Accepted Answer

A) True 
 B)False

Question 15

Which document explains, adds, or deletes provisions in your existing will?

Accepted Answer

A)   Codicil
B)   Tracer
C)   Addendum
D)   Rider
E)   FloaterF) A) and D)
G) All of the above

Question 16

Sally Forth has a trust that she can end at any time she wants. What type of trust does Sally have?

Accepted Answer

A)   Revocable trust
B)   Irrevocable trust
C)   Bargain trust
D)   Negotiable trust
E)   Non-negotiable trustF) A) and D)
G) D) and E)

Question 17

Estate planning is an integral part of financial planning.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Accepted Answer

A)   Medical directives
B)   Holographic will
C)   Formal will
D)   Letter of last instruction
E)   Living willF) A) and E)
G) B) and D)

Question 19

Joseph Vu has assets worth $1,200,000. He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death. What is this legal document?

Accepted Answer

A)   Estate
B)   Will
C)   Trust
D)   Probate
E)   LiabilitiesF) C) and E)
G) A) and B)

Question 20

Which one of the following wills leaves everything to your spouse?

Accepted Answer

A)   Simple
B)   Traditional marital share
C)   Exemption trust
D)   Stated dollar amount
E)   LivingF) B) and D)
G) A) and B)

Exam 19: Estate Planning

Estate planning is an integral part of financial planning.

Correct AnswerverifiedShow Answer

Sally Forth has a trust that she can end at any time she wants. What type of trust does Sally have?

Correct AnswerverifiedShow Answer

If your beneficiary is too young or unable to handle money wisely, which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Estate planning is not an essential part of retirement planning.

Correct AnswerverifiedShow Answer

Which document explains, adds, or deletes provisions in your existing will?

Correct AnswerverifiedShow Answer

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n) ____________ tax.

Correct AnswerverifiedShow Answer

You should review your will if:

Correct AnswerverifiedShow Answer

Estate planning has two parts. The second part of estate planning consists of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Perhaps the most popular form of marital trust is the Q-TIP trust.

Correct AnswerverifiedShow Answer

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following wills leaves everything to your spouse?

Correct AnswerverifiedShow Answer

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Correct AnswerverifiedShow Answer

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Correct AnswerverifiedShow Answer

Joseph Vu has assets worth $1,200,000. He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death. What is this legal document?

Correct AnswerverifiedShow Answer

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million. This exemption amount passes into a trust. What type of will has Will created?

Correct AnswerverifiedShow Answer

A simple will creates lower overall taxation for all individuals.

Correct AnswerverifiedShow Answer

Probate is a legal procedure of proving a valid or invalid will.

Correct AnswerverifiedShow Answer

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