Question 1

Even a parent without significant net worth needs a will to appoint a guardian for children.

Accepted Answer

A) True 
 B)False

Question 2

Probate is the legal process that ensures assets are distributed and guardians of children are appointed as the person who died wished it.

Accepted Answer

A) True 
 B)False

Question 3

Use the following two columns of items to answer the matching questions below:
-beneficiaries
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...

Question 4

As you get older and accumulate wealth, it is important to keep abreast of

Accepted Answer

A)  gift tax laws in order to avoid potential estate taxes. 
B)  estate tax laws regarding the tax-free estate limits. 
C)  tax law regarding use of trusts to avoid estate taxes upon your death. 
D)  You should consult an attorney who specializes in estate planning routinely about all of the above factors. 
A)  gift tax laws in order to avoid potential estate taxes. 
B)  estate tax laws regarding the tax-free estate limits. 
C)  tax law regarding use of trusts to avoid estate taxes upon your death. 
D)  You should consult an attorney who specializes in estate planning routinely about all of the above factors.

Question 5

Which of the following is true about estate taxes?

Accepted Answer

A)  All of an estate is tax-free. 
B)  A portion of an estate is excluded from taxes. 
C)  All of an estate is taxed. 
D)  Fifty percent of an estate is taxable. 
A)  All of an estate is tax-free. 
B)  A portion of an estate is excluded from taxes. 
C)  All of an estate is taxed. 
D)  Fifty percent of an estate is taxable.

Question 6

A living will is a simple legal document in which individuals specify their preferences if they become mentally or physically disabled.

Accepted Answer

A) True 
 B)False

Question 7

A ________ trust is created by a will.

Accepted Answer

A)  testamentary 
B)  living 
C)  bequeathed 
D)  credit shelter 
A)  testamentary 
B)  living 
C)  bequeathed 
D)  credit shelter

Question 8

If you wish to be cremated when you die, this request should be included in a

Accepted Answer

A)  simple will. 
B)  letter of last instruction. 
C)  codicil. 
D)  probate. 
A)  simple will. 
B)  letter of last instruction. 
C)  codicil. 
D)  probate.

Question 9

Once you have a positive net worth to be distributed upon your death, you should consider creating a will.

Accepted Answer

A) True 
 B)False

Question 10

Any money donated from an estate to charitable organizations is given after estate taxes are paid.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not accomplished during probate?

Accepted Answer

A)  Payment of claims against the estate 
B)  Validation of the will 
C)  Determination of legal heirs 
D)  Trading of the estate's assets among the heirs 
A)  Payment of claims against the estate 
B)  Validation of the will 
C)  Determination of legal heirs 
D)  Trading of the estate's assets among the heirs

Question 12

By using a revocable living trust, you can avoid the probate process.

Accepted Answer

A) True 
 B)False

Question 13

As of 2018, a person may give any other person up to $15,000 per year in cash or other assets, and neither the giver nor the recipient of the gift has any tax liability for it.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not necessary for a will to be valid?

Accepted Answer

A)  All heirs must agree to the terms of the will. 
B)  The will must be dated. 
C)  The will must be signed. 
D)  The person creating the will must be mentally competent at the time the will is written. 
A)  All heirs must agree to the terms of the will. 
B)  The will must be dated. 
C)  The will must be signed. 
D)  The person creating the will must be mentally competent at the time the will is written.

Question 15

Use the following two columns of items to answer the matching questions below:
-probate
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...

Question 16

A legal document granting a person the power to make specific health care decisions for you is called a

Accepted Answer

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

Question 17

Once your net worth exceeds the tax-free limit of estate taxes, you should carefully plan your estate to minimize any potential tax liability.

Accepted Answer

A) True 
 B)False

Question 18

A ________ will is suitable for larger estates because it distributes half of the estate to the spouse and the other half to any children or to a trust.

Accepted Answer

A)  simple 
B)  complex 
C)  traditional marital share 
D)  modern marital share 
A)  simple 
B)  complex 
C)  traditional marital share 
D)  modern marital share

Question 19

A ________ is a legal document in which individuals specify their preferences for medical care if they become mentally or physically disabled.

Accepted Answer

A)  living trust 
B)  living will 
C)  testamentary trust 
D)  testamentary will 
A)  living trust 
B)  living will 
C)  testamentary trust 
D)  testamentary will

Question 20

Use the following two columns of items to answer the matching questions below:
-simple will
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...

Even a parent without significant net worth needs a will to appoint a guardian for children.

Probate is the legal process that ensures assets are distributed and guardians of children are appointed as the person who died wished it.

As you get older and accumulate wealth, it is important to keep abreast of

Which of the following is true about estate taxes?

A living will is a simple legal document in which individuals specify their preferences if they become mentally or physically disabled.

A ________ trust is created by a will.

If you wish to be cremated when you die, this request should be included in a

Once you have a positive net worth to be distributed upon your death, you should consider creating a will.

Any money donated from an estate to charitable organizations is given after estate taxes are paid.

Which of the following is not accomplished during probate?

By using a revocable living trust, you can avoid the probate process.

As of 2018, a person may give any other person up to $15,000 per year in cash or other assets, and neither the giver nor the recipient of the gift has any tax liability for it.

Which of the following is not necessary for a will to be valid?

A legal document granting a person the power to make specific health care decisions for you is called a

Once your net worth exceeds the tax-free limit of estate taxes, you should carefully plan your estate to minimize any potential tax liability.

A ________ will is suitable for larger estates because it distributes half of the estate to the spouse and the other half to any children or to a trust.

A ________ is a legal document in which individuals specify their preferences for medical care if they become mentally or physically disabled.

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

Even a parent without significant net worth needs a will to appoint a guardian for children.

Probate is the legal process that ensures assets are distributed and guardians of children are appointed as the person who died wished it.

As you get older and accumulate wealth, it is important to keep abreast of

Which of the following is true about estate taxes?

A living will is a simple legal document in which individuals specify their preferences if they become mentally or physically disabled.

A ________ trust is created by a will.

If you wish to be cremated when you die, this request should be included in a

Once you have a positive net worth to be distributed upon your death, you should consider creating a will.

Any money donated from an estate to charitable organizations is given after estate taxes are paid.

Which of the following is not accomplished during probate?

By using a revocable living trust, you can avoid the probate process.

As of 2018, a person may give any other person up to $15,000 per year in cash or other assets, and neither the giver nor the recipient of the gift has any tax liability for it.

Which of the following is not necessary for a will to be valid?

A legal document granting a person the power to make specific health care decisions for you is called a

Once your net worth exceeds the tax-free limit of estate taxes, you should carefully plan your estate to minimize any potential tax liability.

A ________ will is suitable for larger estates because it distributes half of the estate to the spouse and the other half to any children or to a trust.

A ________ is a legal document in which individuals specify their preferences for medical care if they become mentally or physically disabled.

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