Exam 15: Preserving Your Estate

The decedent's personal representative is called a(n)

Intestacy results from dying without a valid will.

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

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].

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 former husband usually will be [nullified | still valid] in most states.

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.

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 commentators believe the annual exclusion amount from estate tax will be set at [$3,500,000 | $1,000,000] for 2013.

Those who could use trust services include all the following except

The taxable estate is less than the adjusted gross estate.

A letter of last instruction is a legal document.

An estate plan is good only as long as it fits the needs,desires,and circumstances of the parties involved.

A trust is a means of transferring property.

Jill and Jack are siblings.Jill wants to gift $15,000 to Jack's daughter.She and Jack can join in that gift to take advantage of gift splitting.

A new will revokes previous wills only if a statement such as "This will revokes all previous wills" appears.

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.

A letter of last instructions could include this information.

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 person writing a will is called the [decedent | testator].

Custodial accounts are used to protect the property of minor children.

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 have a small estate,you should [contact an attorney | write your will yourself].

Maxine's estate is worth $600,000.It will not be subject to federal estate taxes.