Question 1

Which of the following would keep you from being an executor of a will?

Accepted Answer

A) Having been convicted of a felony 
B) Being over 70 years of age 
C) Being married 
D) Being a coworker of the deceased 
E) Being a child of the deceased 
A) Having been convicted of a felony 
B) Being over 70 years of age 
C) Being married 
D) Being a coworker of the deceased 
E) Being a child of the deceased

Question 2

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Accepted Answer

A) letter of last instruction. 
B) codicil. 
C) prenuptial agreement. 
D) marital agreement. 
E) marital share will. 
A) letter of last instruction. 
B) codicil. 
C) prenuptial agreement. 
D) marital agreement. 
E) marital share will.

Question 3

Which will is sufficient for most smaller estates?

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 4

Joint ownership is a good substitute for a will.

Accepted Answer

A) True 
 B)False

Question 5

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

Accepted Answer

A) True 
 B)False

Question 6

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Accepted Answer

A) Letter of last instruction 
B) Durable power of attorney 
C) Will 
D) Revocable trust 
E) Irrevocable trust 
A) Letter of last instruction 
B) Durable power of attorney 
C) Will 
D) Revocable trust 
E) Irrevocable trust

Question 7

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n):

Accepted Answer

A) credit-shelter trust. 
B) marital-deduction trust. 
C) living trust. 
D) inter vivos trust. 
E) disclaimer trust. 
A) credit-shelter trust. 
B) marital-deduction trust. 
C) living trust. 
D) inter vivos trust. 
E) disclaimer trust.

Question 8

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a:

Accepted Answer

A) beneficiary. 
B) executor. 
C) trustee. 
D) guardian. 
E) executrix. 
A) beneficiary. 
B) executor. 
C) trustee. 
D) guardian. 
E) executrix.

Question 9

In estate planning,if you are married:

Accepted Answer

A) you do not need a will as your spouse is entitled to all of your assets. 
B) your estate planning becomes simpler once you have children. 
C) you should let your spouse do all of your estate planning. 
D) your situation is more complex than when you were still single. 
E) your planning consists solely of naming beneficiaries for your life insurance. 
A) you do not need a will as your spouse is entitled to all of your assets. 
B) your estate planning becomes simpler once you have children. 
C) you should let your spouse do all of your estate planning. 
D) your situation is more complex than when you were still single. 
E) your planning consists solely of naming beneficiaries for your life insurance.

Question 10

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Accepted Answer

A) True 
 B)False

Question 11

If you die without a valid will:

Accepted Answer

A) the IRS confiscates your property. 
B) a federal court decides how your property will be distributed. 
C) your closest relative will receive all your property according to federal law. 
D) your letter of instruction becomes your will. 
E) your state's law of descent and distribution becomes your will. 
A) the IRS confiscates your property. 
B) a federal court decides how your property will be distributed. 
C) your closest relative will receive all your property according to federal law. 
D) your letter of instruction becomes your will. 
E) your state's law of descent and distribution becomes your will.

Question 12

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Accepted Answer

A) True 
 B)False

Question 13

Which will should be written,dated,and signed entirely in your own handwriting?

Accepted Answer

A) Informal 
B) Marital trust 
C) Formal 
D) Statutory 
E) Holographic 
A) Informal 
B) Marital trust 
C) Formal 
D) Statutory 
E) Holographic

Question 14

Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children.After he dies,there is a legal process to determine whether his document specifying how his assets be divided is valid.This is also the legal process by which his executor manages and distributes his property.What is this legal process called?

Accepted Answer

A) Estate 
B) Will 
C) Trust 
D) Probate 
E) Terms of distribution 
A) Estate 
B) Will 
C) Trust 
D) Probate 
E) Terms of distribution

Question 15

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Accepted Answer

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

Question 16

Your executor can be which of the following:

Accepted Answer

A) a family member. 
B) a friend. 
C) an attorney. 
D) an accountant. 
E) Your executor can be any of these. 
A) a family member. 
B) a friend. 
C) an attorney. 
D) an accountant. 
E) Your executor can be any of these.

Question 17

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

Accepted Answer

A) Revocable trust 
B) Irrevocable trust 
C) Bargain trust 
D) Negotiable trust 
E) Non-negotiable trust 
A) Revocable trust 
B) Irrevocable trust 
C) Bargain trust 
D) Negotiable trust 
E) Non-negotiable trust

Question 18

An estate plan is usually implemented by a will and one or more trust agreements.

Accepted Answer

A) True 
 B)False

Question 19

A formal will may be either typed or on a preprinted form.

Accepted Answer

A) True 
 B)False

Question 20

You should avoid probate because it is expensive,lengthy,and public.

Accepted Answer

A) True 
 B)False

Which of the following would keep you from being an executor of a will?

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Which will is sufficient for most smaller estates?

Joint ownership is a good substitute for a will.

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n):

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a:

In estate planning,if you are married:

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

If you die without a valid will:

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Which will should be written,dated,and signed entirely in your own handwriting?

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Your executor can be which of the following:

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

An estate plan is usually implemented by a will and one or more trust agreements.

A formal will may be either typed or on a preprinted form.

You should avoid probate because it is expensive,lengthy,and public.

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 of the following would keep you from being an executor of a will?

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Which will is sufficient for most smaller estates?

Joint ownership is a good substitute for a will.

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n):

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a:

In estate planning,if you are married:

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

If you die without a valid will:

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Which will should be written,dated,and signed entirely in your own handwriting?

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Your executor can be which of the following:

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

An estate plan is usually implemented by a will and one or more trust agreements.

A formal will may be either typed or on a preprinted form.

You should avoid probate because it is expensive,lengthy,and public.

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