Question 1

A trust designed to provide liquidity for an estate without increasing the size of the estate is a(n)____.

Accepted Answer

A)  revocable living 
B)  irrevocable life insurance 
C)  testamentary 
D)  charitable lead 
E)  credit shelter 
A)  revocable living 
B)  irrevocable life insurance 
C)  testamentary 
D)  charitable lead 
E)  credit shelter

Question 2

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.
-Most estates are dissipated because the deceased had [an improper estate plan | no estate plan].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

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 are married with a 3-year old child.If you die without leaving a will,in most states [your spouse will inherit your entire estate | your spouse and child will share your estate].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 4

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 5

Gift tax liability could be incurred on this transaction:

Accepted Answer

A)  providing rent-free apartment for mother 
B)  1,000 hours of babysitting for grandchild 
C)  son's deposit into husband-wife joint checking account 
D)  setting up a revocable trust 
E)  $35,000 given to son 
A)  providing rent-free apartment for mother 
B)  1,000 hours of babysitting for grandchild 
C)  son's deposit into husband-wife joint checking account 
D)  setting up a revocable trust 
E)  $35,000 given to son

Question 6

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.
-Funeral instructions should be included in a [letter of instructions | your will].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

Which of the following is not a type of trust

Accepted Answer

A)  credit shelter trust 
B)  qualified terminable interest property trust 
C)  crummey trust 
D)  charitable remainder trust 
E)  credible property sharing trust 
A)  credit shelter trust 
B)  qualified terminable interest property trust 
C)  crummey trust 
D)  charitable remainder trust 
E)  credible property sharing trust

Question 8

The probate estate consists of

Accepted Answer

A)  real property 
B)  personal property 
C)  regulated by interstate laws if you have no valid will 
D)  all of the above 
E)  none of the above 
A)  real property 
B)  personal property 
C)  regulated by interstate laws if you have no valid will 
D)  all of the above 
E)  none of the above

Question 9

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

Accepted Answer

A) True 
 B)False

Question 10

The best choice for a trustee is a family member.

Accepted Answer

A) True 
 B)False

Question 11

In the absence of a valid will,the heir most generally favored would be the

Accepted Answer

A)  spouse. 
B)  children. 
C)  parents. 
D)  grandchildren. 
E)  All of these are treated as equals. 
A)  spouse. 
B)  children. 
C)  parents. 
D)  grandchildren. 
E)  All of these are treated as equals.

Question 12

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.
-An appropriate trust to set up with a disabled child being the beneficiary would be the [Special Needs | Minor's Section 2503(c)] trust.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

The unified rate schedule applies to federal ____ taxes.

Accepted Answer

A)  inheritance and gift 
B)  gift and income 
C)  gift and estate 
D)  income and estate 
E)  estate and inheritance 
A)  inheritance and gift 
B)  gift and income 
C)  gift and estate 
D)  income and estate 
E)  estate and inheritance

Question 14

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 and no offspring but parents?

Accepted Answer

To survivi

Question 15

The ____ clause in a will is largely useless.

Accepted Answer

A)  introductory 
B)  disposition of property 
C)  appointment 
D)  simultaneous death 
E)  directions of payment 
A)  introductory 
B)  disposition of property 
C)  appointment 
D)  simultaneous death 
E)  directions of payment

Question 16

A testator can revoke a will in the following ways:

Accepted Answer

A)  making a later will that will revoke prior wills 
B)  making a codicil that revokes prior wills 
C)  burning the will 
D)  all of the above 
E)  a & b 
A)  making a later will that will revoke prior wills 
B)  making a codicil that revokes prior wills 
C)  burning the will 
D)  all of the above 
E)  a & b

Question 17

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

Accepted Answer

A)  grandchildren. 
B)  children. 
C)  spouse. 
D)  father. 
E)  spouse and children. 
A)  grandchildren. 
B)  children. 
C)  spouse. 
D)  father. 
E)  spouse and children.

Question 18

Estate tax liability may be reduced by a state death tax credit.

Accepted Answer

A) True 
 B)False

Question 19

A form of joint ownership that may exist only between husband and wife is

Accepted Answer

A)  joint tenancy. 
B)  joint tenancy with right of survivorship. 
C)  joint tenancy without right of survivorship. 
D)  tenancy in common. 
E)  tenancy in the entirety. 
A)  joint tenancy. 
B)  joint tenancy with right of survivorship. 
C)  joint tenancy without right of survivorship. 
D)  tenancy in common. 
E)  tenancy in the entirety.

Question 20

When writing a will,you should seek the professional services of

Accepted Answer

A)  tax accountants. 
B)  attorneys. 
C)  executors. 
D)  intestate administrators. 
E)  trustees. 
A)  tax accountants. 
B)  attorneys. 
C)  executors. 
D)  intestate administrators. 
E)  trustees.

A trust designed to provide liquidity for an estate without increasing the size of the estate is a(n)____.

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. -Most estates are dissipated because the deceased had [an improper estate plan | no estate plan].

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

Gift tax liability could be incurred on this transaction:

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. -Funeral instructions should be included in a [letter of instructions | your will].

Which of the following is not a type of trust

The probate estate consists of

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

The best choice for a trustee is a family member.

In the absence of a valid will,the heir most generally favored would be the

The unified rate schedule applies to federal ____ taxes.

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 and no offspring but parents?

The ____ clause in a will is largely useless.

A testator can revoke a will in the following ways:

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

Estate tax liability may be reduced by a state death tax credit.

A form of joint ownership that may exist only between husband and wife is

When writing a will,you should seek the professional services of

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

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Exam 15: Preserving Your Estate

A trust designed to provide liquidity for an estate without increasing the size of the estate is a(n)____.

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. -Most estates are dissipated because the deceased had [an improper estate plan | no estate plan].

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

Gift tax liability could be incurred on this transaction:

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. -Funeral instructions should be included in a [letter of instructions | your will].

Which of the following is not a type of trust

The probate estate consists of

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

The best choice for a trustee is a family member.

In the absence of a valid will,the heir most generally favored would be the

The unified rate schedule applies to federal ____ taxes.

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 and no offspring but parents?

The ____ clause in a will is largely useless.

A testator can revoke a will in the following ways:

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

Estate tax liability may be reduced by a state death tax credit.

A form of joint ownership that may exist only between husband and wife is

When writing a will,you should seek the professional services of

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Filters