Question 1

Which one of the following statements is correct?

Accepted Answer

A) An estate plan is usually implemented by a will and trust agreements. 
B) Most people do extensive estate planning. 
C) Most people think they will live forever. 
D) People should not worry about estate planning until they are age 65. 
E) Estate planning is really only necessary if you are wealthy. 
A) An estate plan is usually implemented by a will and trust agreements. 
B) Most people do extensive estate planning. 
C) Most people think they will live forever. 
D) People should not worry about estate planning until they are age 65. 
E) Estate planning is really only necessary if you are wealthy. A

Question 2

Generally,the cost of writing a will is more than that for writing a living trust.

Accepted Answer

A) True 
 B)False  False

Question 3

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is true of a Testamentary trust?

Accepted Answer

A) It does not protect your assets from the probate process. 
B) It is valuable for experienced beneficiaries. 
C) It becomes effect upon your signature. 
D) It is not established by your will. 
E) It does not provide the benefit of asset management. 
A) It does not protect your assets from the probate process. 
B) It is valuable for experienced beneficiaries. 
C) It becomes effect upon your signature. 
D) It is not established by your will. 
E) It does not provide the benefit of asset management.

Question 5

To be valid,a will must:

Accepted Answer

A) be notarized. 
B) be recorded in a court of law. 
C) be signed in the presence of two witnesses. 
D) be orally stated in front of two witnesses. 
E) not name an executor as the court will appoint one. 
A) be notarized. 
B) be recorded in a court of law. 
C) be signed in the presence of two witnesses. 
D) be orally stated in front of two witnesses. 
E) not name an executor as the court will appoint one.

Question 6

A beneficiary is a person who has been named to receive property under the will.

Accepted Answer

A) True 
 B)False

Question 7

Brenda Johnson has used a preprinted form that she got from a stationery store to create her will.What type of will has she created?

Accepted Answer

A) Holographic 
B) Formal 
C) Statutory 
D) Casual 
E) Living 
A) Holographic 
B) Formal 
C) Statutory 
D) Casual 
E) Living

Question 8

If you establish a(n)________ trust,you retain the right to end the trust or change its terms during your lifetime.

Accepted Answer

A) irrevocable 
B) revocable 
C) living 
D) self-declaration 
E) testamentary 
A) irrevocable 
B) revocable 
C) living 
D) self-declaration 
E) testamentary

Question 9

A tax levied on an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n)________ tax.

Accepted Answer

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

Question 10

Which of the following is not true of a Credit-Shelter trust?

Accepted Answer

A) It is also known as a residuary trust. 
B) It allows $11.18 million (in 2018)of every estate to pass free of federal estate taxes to your spouse. 
C) Only an estate of more than $22.36 million is taxable for a married couple. 
D) The exemptions allowed by the Tax Cuts and Jobs Act of 2017 never expire. 
E) It is also known as a bypass trust. 
A) It is also known as a residuary trust. 
B) It allows $11.18 million (in 2018)of every estate to pass free of federal estate taxes to your spouse. 
C) Only an estate of more than $22.36 million is taxable for a married couple. 
D) The exemptions allowed by the Tax Cuts and Jobs Act of 2017 never expire. 
E) It is also known as a bypass trust.

Question 11

What are some benefits of establishing a trust?

Accepted Answer

Your individual circumstances dictate wh

Question 12

If your beneficiary is too young or unable to handle money wisely,which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Accepted Answer

A) A spendthrift trust 
B) A charitable lead trust 
C) A charitable reminder trust 
D) A self-declaration trust 
E) A generation-skipping trust 
A) A spendthrift trust 
B) A charitable lead trust 
C) A charitable reminder trust 
D) A self-declaration trust 
E) A generation-skipping trust

Question 13

Estate planning is an integral part of financial planning.

Accepted Answer

A) True 
 B)False

Question 14

Brenda Johnson has used a preprinted form that she got from the internet to create her will.However,she was unhappy with one section of the will and crossed out the parts she didn't like and hand wrote the changes she wanted.The changes that she made most likely made her will:

Accepted Answer

A) invalid. 
B) an A/B trust. 
C) a letter of last instruction. 
D) a marital trust. 
E) an exemption trust. 
A) invalid. 
B) an A/B trust. 
C) a letter of last instruction. 
D) a marital trust. 
E) an exemption trust.

Question 15

James Fitzwater has created a will that leaves exactly $2 million to his wife in anticipation of her income needs.What type of will has James created?

Accepted Answer

A) Simple 
B) Traditional marital share 
C) Exemption trust 
D) Stated dollar amount 
E) Living will 
A) Simple 
B) Traditional marital share 
C) Exemption trust 
D) Stated dollar amount 
E) Living will

Question 16

Which of the following are rules to remember when writing a will?

Accepted Answer

A) In most states,you must be 18 years of age or older. 
B) A will must be written in sound judgment and mental capacity to be valid. 
C) The document must clearly state that it is your will. 
D) The will must name an executor. 
E) All of these are rules to remember. 
A) In most states,you must be 18 years of age or older. 
B) A will must be written in sound judgment and mental capacity to be valid. 
C) The document must clearly state that it is your will. 
D) The will must name an executor. 
E) All of these are rules to remember.

Question 17

The adjusted gross estate is equal to the gross estate minus debts and costs.

Accepted Answer

A) True 
 B)False

Question 18

A federal tax levied on the value of the inheritance of a deceased person to transmit his or her property and life insurance at death is called a(n)________ tax.

Accepted Answer

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

Question 19

Under what type of will does everything pass to your spouse,with the exception of an amount equal to the exemption,which passes into trust?

Accepted Answer

A) Simple 
B) Traditional marital share 
C) Exemption trust 
D) Stated dollar amount 
E) Living 
A) Simple 
B) Traditional marital share 
C) Exemption trust 
D) Stated dollar amount 
E) Living

Question 20

Estate planning is useful only to rich and elderly people.

Accepted Answer

A) True 
 B)False

Which one of the following statements is correct?

Generally,the cost of writing a will is more than that for writing a living trust.

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Which of the following is true of a Testamentary trust?

To be valid,a will must:

A beneficiary is a person who has been named to receive property under the will.

Brenda Johnson has used a preprinted form that she got from a stationery store to create her will.What type of will has she created?

If you establish a(n)________ trust,you retain the right to end the trust or change its terms during your lifetime.

A tax levied on an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n)________ tax.

Which of the following is not true of a Credit-Shelter trust?

What are some benefits of establishing a trust?

If your beneficiary is too young or unable to handle money wisely,which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Estate planning is an integral part of financial planning.

Brenda Johnson has used a preprinted form that she got from the internet to create her will.However,she was unhappy with one section of the will and crossed out the parts she didn't like and hand wrote the changes she wanted.The changes that she made most likely made her will:

James Fitzwater has created a will that leaves exactly $2 million to his wife in anticipation of her income needs.What type of will has James created?

Which of the following are rules to remember when writing a will?

The adjusted gross estate is equal to the gross estate minus debts and costs.

A federal tax levied on the value of the inheritance of a deceased person to transmit his or her property and life insurance at death is called a(n)________ tax.

Under what type of will does everything pass to your spouse,with the exception of an amount equal to the exemption,which passes into trust?

Estate planning is useful only to rich and elderly people.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

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Exam 19: Estate Planning

Which one of the following statements is correct?

Generally,the cost of writing a will is more than that for writing a living trust.

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Which of the following is true of a Testamentary trust?

To be valid,a will must:

A beneficiary is a person who has been named to receive property under the will.

Brenda Johnson has used a preprinted form that she got from a stationery store to create her will.What type of will has she created?

If you establish a(n)________ trust,you retain the right to end the trust or change its terms during your lifetime.

A tax levied on an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n)________ tax.

Which of the following is not true of a Credit-Shelter trust?

What are some benefits of establishing a trust?

If your beneficiary is too young or unable to handle money wisely,which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Estate planning is an integral part of financial planning.

Brenda Johnson has used a preprinted form that she got from the internet to create her will.However,she was unhappy with one section of the will and crossed out the parts she didn't like and hand wrote the changes she wanted.The changes that she made most likely made her will:

James Fitzwater has created a will that leaves exactly $2 million to his wife in anticipation of her income needs.What type of will has James created?

Which of the following are rules to remember when writing a will?

The adjusted gross estate is equal to the gross estate minus debts and costs.

A federal tax levied on the value of the inheritance of a deceased person to transmit his or her property and life insurance at death is called a(n)________ tax.

Under what type of will does everything pass to your spouse,with the exception of an amount equal to the exemption,which passes into trust?

Estate planning is useful only to rich and elderly people.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Filters