Exam 15: Preserving Your Estate

A will may be invalid if the testator was under undue influence of another person.

The gross estate includes all the property subject to federal estate tax at a person's death.

This situation calls especially for an estate plan based on the people planning perspective.

____ would represent a second level death-related cost.

The intestate process is federally mandated,and is similar from state to state.

A will is revoked if a second legitimate will is created.

Liquidity is important in an estate to pay for death costs and possible 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. -When Jessica gets a divorce,her will leaving everything to her husband usually will be [nullified | still valid] in most states.

Your real and personal property that can be transferred according to the terms of a will is called your

A trust is a means of transferring property.

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. -Assets held in a trust created during a person's lifetime [will | will not] go through the probate process after the death of the creator.

Mental capacity requires an individual to be at least 21.

Estate planning requires knowledge of wills,trusts,and investments.

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 need to make major revisions in your will.You should write a [codicil | new will].

Your will would appoint ____ to carry out the terms of the will.

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. -Your [gross | probate] estate consists of your real and personal property that will be transferred at death.

Life insurance comprises a large portion of most individuals probate estates.

Death will erase any debts existing at that time.

If a person dies intestate (without a valid will),the estate is distributed according to established state laws of intestate succession.According to Utah's probate code (as described in Exhibit 15.4 of your textbook),what is the estate distribution for no spouse,no offspring,no parents,but offspring of parents?

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 would create a [living | testamentary] trust to be used during your lifetime.