Exam 15: Preserving Your Estate

Only the wealthy need an attorney to prepare their wills.

Put the following steps of the estate planning process in order: A) Assess your family situation and set estate planning goals B) Formulate and implement your plan C) Gather comprehensive and accurate data D) Designate beneficiaries of your estate's assets E) List all assets and determine value of your estate F) Estimate estate transfer costs G) Review the plan periodically and revise as necessary

Which of the following are reasons for making lifetime gifts

More damage is done to estates by doing nothing than by doing the wrong thing.

Tenancy of the entirety consist of

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 consider wealth only,anyone with an estate expected to exceed [$500,000 | $1,000,000] in 2012 must consider estate planning.

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

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. -Your [gross | probate] estate consists of your real and personal property that will be transferred at death.

Trust services are used exclusively by those who cannot handle large sums of money,such as minors.

A testamentary trust is established in a will.

People planning means providing sustenance and resources for family members.

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

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.

The gift tax law allows a person to give gifts up to $10,000 tax free.

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

Mental capacity requires an individual to be at least 21.

The appointment clause affirms that the will in question was really made out by the deceased.

Witnesses to a will may not be family members.

Funeral expenses are examples of second-level death-related costs.

The testator of a will always receives property from the will.