Question 1

The person specified in a will to receive a part of the estate is called a(n)

Accepted Answer

A)  beneficiary. 
B)  grantor. 
C)  trustee. 
D)  administrator. 
A)  beneficiary. 
B)  grantor. 
C)  trustee. 
D)  administrator.

Question 2

Use the following two columns of items to answer the matching questions below:
-grantor
A)a legal document in which the grantor transfers assets to the trustee who manages them for the beneficiaries
B)the person who creates a trust

Accepted Answer

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

Question 3

The probate process includes all of the following steps, except

Accepted Answer

A)  filing a copy of the will with the court. 
B)  filing a copy of the inventory of all assets and liabilities with the court. 
C)  opening a bank account and depositing proceeds from the sale of estate assets. 
D)  making extra allocations of assets based on the needs of the heirs. 
A)  filing a copy of the will with the court. 
B)  filing a copy of the inventory of all assets and liabilities with the court. 
C)  opening a bank account and depositing proceeds from the sale of estate assets. 
D)  making extra allocations of assets based on the needs of the heirs.

Question 4

The value of the estate is calculated using

Accepted Answer

A)  cost. 
B)  market value. 
C)  cost plus inflation. 
D)  the consumer price index. 
A)  cost. 
B)  market value. 
C)  cost plus inflation. 
D)  the consumer price index.

Question 5

It is very important to engage in estate planning once the value of your estate nears

Accepted Answer

A)  $1,000,000. 
B)  the legal limit for the maximum estate that can be passed down to your children. 
C)  $11,200,000. 
D)  $3,500,000. 
A)  $1,000,000. 
B)  the legal limit for the maximum estate that can be passed down to your children. 
C)  $11,200,000. 
D)  $3,500,000.

Question 6

Since the settling of wills is straightforward, almost anyone can do a good job as an executor of an estate.

Accepted Answer

A) True 
 B)False

Question 7

A revocable living trust cannot be changed during the grantor's lifetime.

Accepted Answer

A) True 
 B)False

Question 8

Money donated from an estate to charitable organizations is

Accepted Answer

A)  not subject to estate taxes. 
B)  added back into the value of an estate for tax purposes. 
C)  an itemized deduction on the federal income tax return of the deceased. 
D)  allowed a 50% credit against the value of the estate. 
A)  not subject to estate taxes. 
B)  added back into the value of an estate for tax purposes. 
C)  an itemized deduction on the federal income tax return of the deceased. 
D)  allowed a 50% credit against the value of the estate.

Question 9

Which of the following is not a duty of the executor of an estate?

Accepted Answer

A)  Collect money owed the estate 
B)  Decide how the assets will be distributed 
C)  Pay debts of the estate 
D)  Sell specific assets of the estate if necessary 
A)  Collect money owed the estate 
B)  Decide how the assets will be distributed 
C)  Pay debts of the estate 
D)  Sell specific assets of the estate if necessary

Question 10

A power of attorney can give someone you designate the power to make all of the following decisions, except

Accepted Answer

A)  sell stock in your portfolio. 
B)  authorize expenditures to make your house suitable for you when you become incapacitated. 
C)  decide who gets your coin collection after you die. 
D)  select a nursing home for you to live in. 
A)  sell stock in your portfolio. 
B)  authorize expenditures to make your house suitable for you when you become incapacitated. 
C)  decide who gets your coin collection after you die. 
D)  select a nursing home for you to live in.

Question 11

Which of the following is not a type of trust?

Accepted Answer

A)  Revocable living trust 
B)  Living trust 
C)  Standard family trust 
D)  Income trust 
A)  Revocable living trust 
B)  Living trust 
C)  Standard family trust 
D)  Income trust

Question 12

A trust that is created by the terms of the will is called a(n) ________ trust.

Accepted Answer

The answer of A trust that is created by the...

Question 13

A marital share will is most appropriate for married couples with large estates.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are important documents for estate planning, except

Accepted Answer

A)  living will. 
B)  life insurance policies. 
C)  credit card information. 
D)  baptismal certificate. 
A)  living will. 
B)  life insurance policies. 
C)  credit card information. 
D)  baptismal certificate.

Question 15

The assets less liabilities of a deceased individual are called a(n) ________.

Accepted Answer

The answer of The assets less liabilities of a deceased...

Question 16

Estate planning is the act of planning how your wealth will be allocated before your death.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of probate is to ensure the

Accepted Answer

A)  orderly distribution of assets. 
B)  orderly distribution of liabilities. 
C)  distribution of expenses. 
D)  equal allocation of all financial matters. 
A)  orderly distribution of assets. 
B)  orderly distribution of liabilities. 
C)  distribution of expenses. 
D)  equal allocation of all financial matters.

Question 18

Estate planning commonly involves trusts, gifts, and charitable contributions for the purpose of avoiding estate taxes.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are correct regarding assets included for estate tax purposes, except

Accepted Answer

A)  stocks are included in the estate value. 
B)  bonds are included in the estate value. 
C)  municipal bonds are not included in the estate value since they are federal tax free. 
D)  All of the above are correct. 
A)  stocks are included in the estate value. 
B)  bonds are included in the estate value. 
C)  municipal bonds are not included in the estate value since they are federal tax free. 
D)  All of the above are correct.

Question 20

Use the following two columns of items to answer the matching questions below:
-trust
A)a legal document in which the grantor transfers assets to the trustee who manages them for the beneficiaries
B)the person who creates a trust

Accepted Answer

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

Exam 20: Estate Planning

The person specified in a will to receive a part of the estate is called a(n)

Use the following two columns of items to answer the matching questions below: -grantor A)a legal document in which the grantor transfers assets to the trustee who manages them for the beneficiaries B)the person who creates a trust

The probate process includes all of the following steps, except

The value of the estate is calculated using

It is very important to engage in estate planning once the value of your estate nears

Since the settling of wills is straightforward, almost anyone can do a good job as an executor of an estate.

A revocable living trust cannot be changed during the grantor's lifetime.

Money donated from an estate to charitable organizations is

Which of the following is not a duty of the executor of an estate?

A power of attorney can give someone you designate the power to make all of the following decisions, except

Which of the following is not a type of trust?

A trust that is created by the terms of the will is called a(n) ________ trust.

A marital share will is most appropriate for married couples with large estates.

All of the following are important documents for estate planning, except

The assets less liabilities of a deceased individual are called a(n) ________.

Estate planning is the act of planning how your wealth will be allocated before your death.

The purpose of probate is to ensure the

Estate planning commonly involves trusts, gifts, and charitable contributions for the purpose of avoiding estate taxes.

All of the following are correct regarding assets included for estate tax purposes, except

Use the following two columns of items to answer the matching questions below: -trust A)a legal document in which the grantor transfers assets to the trustee who manages them for the beneficiaries B)the person who creates a trust

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

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