Question 1

If you are married, have a small estate, and have no children, a(n) ________ will probably serve your needs.

Accepted Answer

simple will

Question 2

A person who manages assets for designated beneficiaries is called a

Accepted Answer

A)  witness. 
B)  trustee. 
C)  grantor. 
D)  executor. 
A)  witness. 
B)  trustee. 
C)  grantor. 
D)  executor. B

Question 3

List the following steps of the probate process in order: 
(a) Estate taxes are paid
(b) Value of the estate is determined
(c) A copy of the will is provided to the probate court
(d) Executor files forms in the local probate court
(e) A list of assets and liabilities is prepared

Accepted Answer

(D), (C), (E), (B), (A)

Question 4

In determining estate taxes, the estate is valued by subtracting all liabilities including funeral expenses from the value of all assets including a home.

Accepted Answer

A) True 
 B)False

Question 5

The giving of annual individual gifts up to the allowable amount is especially important for

Accepted Answer

A)  those without a will. 
B)  people in high income tax brackets. 
C)  people whose estate value exceeds the tax-free limit. 
D)  those with smaller estates. 
A)  those without a will. 
B)  people in high income tax brackets. 
C)  people whose estate value exceeds the tax-free limit. 
D)  those with smaller estates.

Question 6

Estate planning decisions are affected by what five areas?

Accepted Answer

Financial planning t

Question 7

Your brother is in a serious auto accident and has become incapacitated. In order for you to be able to make decisions for his medical care, he would need to have created a

Accepted Answer

A)  living will. 
B)  health care directive. 
C)  power of attorney. 
D)  durable power of attorney for health care. 
A)  living will. 
B)  health care directive. 
C)  power of attorney. 
D)  durable power of attorney for health care.

Question 8

What three types of planning help you protect your wealth?

Accepted Answer

Insurance,

Question 9

A legal document in which one person transfers assets to another who manages them for designated beneficiaries is called a

Accepted Answer

A)  testamentary device. 
B)  trust. 
C)  will. 
D)  codicil. 
A)  testamentary device. 
B)  trust. 
C)  will. 
D)  codicil.

Question 10

The primary purpose of a marital share will is to

Accepted Answer

A)  give each former spouse a share of the assets in the case of multiple marriages. 
B)  minimize taxes on the estate. 
C)  give all assets to the surviving spouse. 
D)  keep peace in the family. 
A)  give each former spouse a share of the assets in the case of multiple marriages. 
B)  minimize taxes on the estate. 
C)  give all assets to the surviving spouse. 
D)  keep peace in the family.

Question 11

A simple will may not be appropriate if

Accepted Answer

A)  the estate is small. 
B)  the estate is large. 
C)  the person is married. 
D)  the entire estate is to go to the spouse. 
A)  the estate is small. 
B)  the estate is large. 
C)  the person is married. 
D)  the entire estate is to go to the spouse.

Question 12

A(n) ________ is a document that specifies changes in an existing will.

Accepted Answer

A)  letter of instruction 
B)  codicil 
C)  amendment 
D)  secondary will 
A)  letter of instruction 
B)  codicil 
C)  amendment 
D)  secondary will

Question 13

All of the following are required for a will to be valid, except

Accepted Answer

A)  the will must be typed. 
B)  the will must be witnessed by at least two people who are not beneficiaries of the will. 
C)  the will must be dated. 
D)  the will must be signed. 
A)  the will must be typed. 
B)  the will must be witnessed by at least two people who are not beneficiaries of the will. 
C)  the will must be dated. 
D)  the will must be signed.

Question 14

Which of the following is not true regarding the valuation of an estate for tax purposes?

Accepted Answer

A)  Assets including a home are included. 
B)  Liabilities including a home mortgage are subtracted. 
C)  Funeral and administrative expenses are subtracted. 
D)  Life insurance proceeds from policies owned by the decedent are not included. 
A)  Assets including a home are included. 
B)  Liabilities including a home mortgage are subtracted. 
C)  Funeral and administrative expenses are subtracted. 
D)  Life insurance proceeds from policies owned by the decedent are not included.

Question 15

A tax-free gift of up to ________ per year in 2018 can be given to another person.

Accepted Answer

A)  $1,000 
B)  $15,000 
C)  $14,000 
D)  $20,000 
A)  $1,000 
B)  $15,000 
C)  $14,000 
D)  $20,000

Question 16

A ________ is a legal document granting a person the power to make specific decisions for you in the event that you are incapable.

Accepted Answer

A)  letter of instruction 
B)  power of attorney 
C)  will 
D)  trust 
A)  letter of instruction 
B)  power of attorney 
C)  will 
D)  trust

Question 17

________ is the act of planning how wealth will be allocated on or before your death.

Accepted Answer

A)  Asset allocation 
B)  Estate planning 
C)  Liquidity planning 
D)  Management planning 
A)  Asset allocation 
B)  Estate planning 
C)  Liquidity planning 
D)  Management planning

Question 18

Minor changes to an existing will can be accomplished by the use of a(n) ________.

Accepted Answer

The answer of Minor changes to an existing will can...

Question 19

With samples of valid wills being available on Web sites and in book stores, it is not recommended that a person incur the additional expense of hiring a lawyer to write a will.

Accepted Answer

A) True 
 B)False

Question 20

Use the following two columns of items to answer the matching questions below:
-executor
A)persons specified in a will to receive part of an estate
B)dying without a will
C)a document that specifies changes in an existing will
D)the legal process that declares a will valid and ensures orderly distribution of assets
E)a legal request for how your estate should be distributed upon your death
F)a will suitable for a smaller estate distributed to the spouse
G)the person designated in a will to execute instructions regarding the distribution of your assets

Accepted Answer

The answer of Use the following two columns of items...

If you are married, have a small estate, and have no children, a(n) ________ will probably serve your needs.

A person who manages assets for designated beneficiaries is called a

List the following steps of the probate process in order: (a) Estate taxes are paid (b) Value of the estate is determined (c) A copy of the will is provided to the probate court (d) Executor files forms in the local probate court (e) A list of assets and liabilities is prepared

In determining estate taxes, the estate is valued by subtracting all liabilities including funeral expenses from the value of all assets including a home.

The giving of annual individual gifts up to the allowable amount is especially important for

Estate planning decisions are affected by what five areas?

Your brother is in a serious auto accident and has become incapacitated. In order for you to be able to make decisions for his medical care, he would need to have created a

What three types of planning help you protect your wealth?

A legal document in which one person transfers assets to another who manages them for designated beneficiaries is called a

The primary purpose of a marital share will is to

A simple will may not be appropriate if

A(n) ________ is a document that specifies changes in an existing will.

All of the following are required for a will to be valid, except

Which of the following is not true regarding the valuation of an estate for tax purposes?

A tax-free gift of up to ________ per year in 2018 can be given to another person.

A ________ is a legal document granting a person the power to make specific decisions for you in the event that you are incapable.

________ is the act of planning how wealth will be allocated on or before your death.

Minor changes to an existing will can be accomplished by the use of a(n) ________.

With samples of valid wills being available on Web sites and in book stores, it is not recommended that a person incur the additional expense of hiring a lawyer to write a will.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Integrating the Components of a Financial Plan

Filters

Exam 20: Estate Planning

If you are married, have a small estate, and have no children, a(n) ________ will probably serve your needs.

A person who manages assets for designated beneficiaries is called a

List the following steps of the probate process in order: (a) Estate taxes are paid (b) Value of the estate is determined (c) A copy of the will is provided to the probate court (d) Executor files forms in the local probate court (e) A list of assets and liabilities is prepared

In determining estate taxes, the estate is valued by subtracting all liabilities including funeral expenses from the value of all assets including a home.

The giving of annual individual gifts up to the allowable amount is especially important for

Estate planning decisions are affected by what five areas?

Your brother is in a serious auto accident and has become incapacitated. In order for you to be able to make decisions for his medical care, he would need to have created a

What three types of planning help you protect your wealth?

A legal document in which one person transfers assets to another who manages them for designated beneficiaries is called a

The primary purpose of a marital share will is to

A simple will may not be appropriate if

A(n) ________ is a document that specifies changes in an existing will.

All of the following are required for a will to be valid, except

Which of the following is not true regarding the valuation of an estate for tax purposes?

A tax-free gift of up to ________ per year in 2018 can be given to another person.

A ________ is a legal document granting a person the power to make specific decisions for you in the event that you are incapable.

________ is the act of planning how wealth will be allocated on or before your death.

Minor changes to an existing will can be accomplished by the use of a(n) ________.

With samples of valid wills being available on Web sites and in book stores, it is not recommended that a person incur the additional expense of hiring a lawyer to write a will.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Integrating the Components of a Financial Plan

Filters