Exam 15: Preserving Your Estate

In most states,divorce creates an automatic revocation or modification of a will.

A trust that provides continuity and management of asset management and allows assets to bypasses probate,but which provides no income or estate tax advantages is a(n)____ trust.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A person can give [a limited | any] number of tax free gifts per year.

A will is a legal document outlining the plan for

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Property held jointly with the right of survivorship [would possibly | would not] be part of your gross estate subject to federal estate taxes.

Property held in different states does not complicate the estate planning process.

All living trusts are revocable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -If you die with no valid will in existence,you have died [intestate | testate].

Unmarried and gay/lesbian couples can benefit from estate planning.

Disability is a common reason for estates to break up.

A trust designed to help couples gain full use out of each spouse's exclusion is the ____.

The appointment clause affirms that the will in question was really made out by the deceased.

In most states,the surviving spouse may be entitled to a portion of the estate beyond that granted in the will through the right of election.

With the passage of the 2001 tax laws,there is now an advantage to incurring estate tax rather than gift tax liabilities.

Gift giving can reduce estate tax liability.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The person setting up a trust is called the [grantor | trustee].

The decedent's personal representative is called a(n)

Using a trust can help shield an estate from using improper vehicles of transfer.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -You could give any number of people [$13,000 | $25,000] per year without having to pay any gift taxes.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Real estate is taxed by [the state of residence | the state where the property is located].