Exam 15: Preserving Your Estate

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 [inheritance | pickup estate] tax costs neither the estate or the recipients of the estate anything in addition to the federal estate tax.

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. -For 2009,your net estate value must exceed [$1,650,000 | $3,500,000] before any federal estate taxes will be due.

Life insurance could alleviate estate problems caused by

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. -[Married | Unmarried] couples have the greater need for estate planning.

Your gross estate is all property subject to federal tax at your death.

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 valid will [must be written | can be oral or written].

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 your die,your debts will be paid [only if you so direct in your will | because state laws protect creditors' rights].

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 a spouse with no offspring?

A gift is given when the donor relinquishes control over the asset.

Spouses who are U.S.citizens are treated the same as non-citizen spouses for estate tax purposes.

Your gross estate is composed only of nonprobate 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. -If you want to create a living trust that provides tax advantages,you will need to establish [a revocable | an irrevocable] trust.

A codicil is a simple and convenient legal means of modifying a 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. -A letter of last instruction [is | is not] a legally enforceable document.

AARP says that almost ____ individuals have not discussed end of life issues with family members

Knowing where parents keep important documents is essential to the estate planning process.

The gift tax exclusion applies

Why does an estate "Break Up"

Your gross estate is reduced by the ____ to determine the adjusted gross estate.

Requirements for a valid will do not include