Question 1

Which type of will involves serious risks of invalidity that the form is out of date with respect to current law?

Accepted Answer

A)  Marital share
B)  Statutory
C)  Formal
D)  Exemption trust
E)  LivingF) B) and C)
G) B) and D)

Question 2

Which of the following is a trust that shelters valuable assets that you can pass on to your heirs with minimal taxes and lets you receive an annuity for as long as the trust lasts?

Accepted Answer

A)  Grantor retained annuity trust
B)  Life insurance trust
C)  Marital-deduction trust
D)  Self-declaration trust
E)  Charitable lead trustF) A) and D)
G) A) and C)

Question 3

Which of the following is the most practical first step in estate planning?

Accepted Answer

A)  Preparing a will
B)  Gathering military service records
C)  Obtaining court documents with legal name changes
D)  Reviewing automobile registrations
E)  Purchasing life insuranceF) A) and B)
G) B) and D)

Question 4

A trust established by your will that becomes effective upon your death is called a(n) ________ trust.

Accepted Answer

A)  testamentary
B)  living
C)  revocable
D)  life
E)  insuranceF) A) and B)
G) None of the above

Question 5

A person who will follow your instructions specified in your will is called a:

Accepted Answer

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

Question 6

Describe the four types of wills and which one is best for you.

Accepted Answer

Answers will vary.The four types of will...

Question 7

Explain what a will is and what occurs at your death if you do not have one.

Accepted Answer

A will is the legal declaration of a per...

Question 8

If you establish a(n) ________ trust,you cannot change its terms or end it.

Accepted Answer

A)  irrevocable
B)  revocable
C)  living
D)  self-declaration
E)  testamentaryF) B) and E)
G) A) and E)

Question 9

Estate planning requires an inventory of everything you own,including interests in trusts and powers of appointment.

Accepted Answer

A) True 
 B)False

Question 10

You can assign a durable power of attorney to anyone you choose.

Accepted Answer

A) True 
 B)False

Question 11

Which is not true of wills?

Accepted Answer

A)  The ideal will may depend on the size of your estate.
B)  The ideal will may depend on the future appreciation of your estate.
C)  The ideal will may depend on inflation.
D)  Attorneys today believe that only the simple will is ideal.
E)  The ideal will may depend on your age and your spouse's age.F) A) and E)
G) A) and D)

Question 12

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)  Your voter registrationF) A) and B)
G) C) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A(n) ________ trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A)  guardian
B)  trustee
C)  living
D)  power of attorney
E)  estateF) B) and D)
G) C) and D)

Question 15

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Accepted Answer

A) True 
 B)False

Question 16

If you die intestate,the state's law of descent and distribution becomes your will.

Accepted Answer

A) True 
 B)False

Question 17

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Accepted Answer

A)  Tenants in common
B)  Tenancy by the entirety
C)  Joint tenants with the right of survivorship
D)  Tenancy by seniority
E)  Tenancy by defaultF) A) and D)
G) A) and C)

Question 18

A trust is a legal arrangement through which a trustee holds your assets for your benefit or that of your beneficiaries.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Accepted Answer

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

Exam 19: Estate Planning

Which of the following is a trust that shelters valuable assets that you can pass on to your heirs with minimal taxes and lets you receive an annuity for as long as the trust lasts?

Correct AnswerverifiedShow Answer

You can assign a durable power of attorney to anyone you choose.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A person who will follow your instructions specified in your will is called a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain what a will is and what occurs at your death if you do not have one.

Correct AnswerverifiedA will is the legal declaration of a per...View AnswerShow Answer

A trust established by your will that becomes effective upon your death is called a(n) ________ trust.

Correct AnswerverifiedShow Answer

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Correct AnswerverifiedShow Answer

If you die intestate,the state's law of descent and distribution becomes your will.

Correct AnswerverifiedShow Answer

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Correct AnswerverifiedShow Answer

Which type of will involves serious risks of invalidity that the form is out of date with respect to current law?

Correct AnswerverifiedShow Answer

If you establish a(n) ________ trust,you cannot change its terms or end it.

Correct AnswerverifiedShow Answer

Which of the following is the most practical first step in estate planning?

Correct AnswerverifiedShow Answer

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Correct AnswerverifiedShow Answer

Estate planning requires an inventory of everything you own,including interests in trusts and powers of appointment.

Correct AnswerverifiedShow Answer

A trust is a legal arrangement through which a trustee holds your assets for your benefit or that of your beneficiaries.

Correct AnswerverifiedShow Answer

Which is not true of wills?

Correct AnswerverifiedShow Answer

Describe the four types of wills and which one is best for you.

Correct AnswerverifiedAnswers will vary.The four types of will...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A(n) ________ trust is a property management arrangement that you establish while you are alive.

Correct AnswerverifiedShow Answer

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A will is the legal declaration of a per...
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Answers will vary.The four types of will...
View Answer

Correct Answer
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