Question 1

Benjamin Wiley is married and has assets totaling $7 million. What type of will would most likely result in the lowest overall amount of federal estate taxes? Assume the exemption amount is $3 million.

Accepted Answer

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

Question 2

Gerry Legere has died without writing a will. What is the legal term for this?

Accepted Answer

A)   Probate
B)   Intestate
C)   Testamentary
D)   Statutory
E)   CodicilF) A) and E)
G) B) and E)

Question 3

A surgeon who will soon finish paying off college loans might want to set up a(n) :

Accepted Answer

A)   credit-shelter trust.
B)   marital-deduction trust.
C)   living trust.
D)   inter vivos trust.
E)   disclaimer trust.F) B) and E)
G) B) and D)

Question 4

If you die without a valid will, you die intestate.

Accepted Answer

A) True 
 B)False

Question 5

Hugh Bowersox been selected by Sandra Tyler to assume the responsibility of raising her children and managing her estate for those children if she were to die. In what capacity would Hugh be acting?

Accepted Answer

A)   Executor
B)   Trustee
C)   Guardian
D)   Beneficiary
E)   AgentF) B) and C)
G) C) and D)

Question 6

With a marital-deduction trust you can leave your spouse any money that doesn't go into a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 7

How do wills and trusts help in planning your estate?

Accepted Answer

The answer of How do wills and trusts help in...

Question 8

Kate Wilson has created a will that leaves one-half of her adjusted gross estate to her husband, Matthew. What type of will has she created?

Accepted Answer

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

Question 9

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Accepted Answer

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

Question 10

Which one of the following wills automatically leaves one-half of your adjusted gross estate to your spouse?

Accepted Answer

A)   Simple
B)   Traditional marital share
C)   Exemption trust
D)   Stated dollar amount
E)   A/B trustF) C) and D)
G) None of the above

Question 11

Estate planning is useful only to rich and elderly people.

Accepted Answer

A) True 
 B)False

Question 12

A person who will follow your carry out the instructions specified in your will is called a(n) :

Accepted Answer

A)   beneficiary.
B)   trustor.
C)   witness.
D)   executor or executrix.
E)   codicil.F) A) and C)
G) B) and E)

Question 13

James Fitzwater has created a will that leaves exactly $2 million to his wife. What type of will has James created?

Accepted Answer

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

Question 14

Which of the following is an important document needed for estate planning?

Accepted Answer

A)   Your driver's license
B)   Your transcript from college
C)   Your birth certificate
D)   Your birthday cards
E)   All of these documents are needed in estate planning.F) C) and D)
G) D) and E)

Question 15

Which statement is not true about a letter of last instruction?

Accepted Answer

A)   It is also known as after-death wishes.
B)   It should contain details about your funeral arrangements.
C)   It should contain names of people to be notified of your death.
D)   It is legally enforceable in all states.
E)   It should contain information about the location of your bank accounts.F) C) and D)
G) D) and E)

Question 16

If you die without a valid will:

Accepted Answer

A)   the IRS confiscates your property.
B)   a federal court decides how your property will be distributed.
C)   your closest relative will receive all your property according to federal law.
D)   your letter of instruction becomes your will.
E)   your state's law of descent and distribution becomes your will.F) B) and C)
G) A) and E)

Question 17

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Accepted Answer

A)   Tenancy by default
B)   Tenancy by the entirety
C)   Tenancy in common
D)   Joint tenants with the right of survivorship
E)   Simple tenancyF) A) and E)
G) A) and D)

Question 18

Under what type of will does everything pass to your spouse, with the exception of an amount equal to the exemption, which passes into trust?

Accepted Answer

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

Question 19

Your executor can be which of the following:

Accepted Answer

A)   a family member.
B)   a friend.
C)   an attorney.
D)   an accountant.
E)   Your executor can be any of these.F) C) and D)
G) A) and D)

Question 20

In estate planning, if you are married:

Accepted Answer

A)   you do not need a will as your spouse is entitled to all of your assets.
B)   your estate planning becomes simpler once you have children.
C)   you should let your spouse do all of your estate planning.
D)   your situation is more complex than when you were still single.
E)   your planning consists solely of naming beneficiaries for your life insurance.F) B) and D)
G) None of the above

Exam 19: Estate Planning

Gerry Legere has died without writing a will. What is the legal term for this?

Correct AnswerverifiedShow Answer

Your executor can be which of the following:

Correct AnswerverifiedShow Answer

Which statement is not true about a letter of last instruction?

Correct AnswerverifiedShow Answer

Hugh Bowersox been selected by Sandra Tyler to assume the responsibility of raising her children and managing her estate for those children if she were to die. In what capacity would Hugh be acting?

Correct AnswerverifiedShow Answer

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Correct AnswerverifiedShow Answer

If you die without a valid will, you die intestate.

Correct AnswerverifiedShow Answer

In estate planning, if you are married:

Correct AnswerverifiedShow Answer

Benjamin Wiley is married and has assets totaling $7 million. What type of will would most likely result in the lowest overall amount of federal estate taxes? Assume the exemption amount is $3 million.

Correct AnswerverifiedShow Answer

Kate Wilson has created a will that leaves one-half of her adjusted gross estate to her husband, Matthew. What type of will has she created?

Correct AnswerverifiedShow Answer

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Correct AnswerverifiedShow Answer

James Fitzwater has created a will that leaves exactly $2 million to his wife. What type of will has James created?

Correct AnswerverifiedShow Answer

A surgeon who will soon finish paying off college loans might want to set up a(n) :

Correct AnswerverifiedShow Answer

Under what type of will does everything pass to your spouse, with the exception of an amount equal to the exemption, which passes into trust?

Correct AnswerverifiedShow Answer

How do wills and trusts help in planning your estate?

Correct AnswerverifiedShow Answer

With a marital-deduction trust you can leave your spouse any money that doesn't go into a credit-shelter trust.

Correct AnswerverifiedShow Answer

If you die without a valid will:

Correct AnswerverifiedShow Answer

Estate planning is useful only to rich and elderly people.

Correct AnswerverifiedShow Answer

Which one of the following wills automatically leaves one-half of your adjusted gross estate to your spouse?

Correct AnswerverifiedShow Answer

A person who will follow your carry out the instructions specified in your will is called a(n) :

Correct AnswerverifiedShow Answer

Which of the following is an important document needed for estate planning?

Correct AnswerverifiedShow Answer

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