Question 1

The transfer of an estate (after death)by an individual to the _____ of the individual will result in the most favorable tax treatments.

Accepted Answer

A) children 
B) spouse 
C) parents 
D) employer 
E) siblings 
A) children 
B) spouse 
C) parents 
D) employer 
E) siblings B

Question 2

The unused unified transfer tax (UTT)credit can be used by the:

Accepted Answer

A) spouse. 
B) siblings. 
C) children. 
D) parents. 
E) grantor. 
A) spouse. 
B) siblings. 
C) children. 
D) parents. 
E) grantor. A

Question 3

The gross estate includes all property you own that is subject to federal estate taxes at your death.

Accepted Answer

A) True 
 B)False  True

Question 4

You could gift any number of people _____  per year without having to pay any gift taxes.

Accepted Answer

A) $36,000 
B) $12,000 
C) $25,000 
D) $5,000 
E) $15,000 
A) $36,000 
B) $12,000 
C) $25,000 
D) $5,000 
E) $15,000

Question 5

When the first spouse dies, then any unused applicable exclusion is lost and cannot be used.

Accepted Answer

A) True 
 B)False

Question 6

Since 2011, a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

Accepted Answer

A) True 
 B)False

Question 7

Estate planning requires the knowledge of wills, trusts, and taxes.

Accepted Answer

A) True 
 B)False

Question 8

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

Accepted Answer

A) True 
 B)False

Question 9

_____ has no right of survivorship.

Accepted Answer

A) A co-owner tenancy 
B) A joint tenancy 
C) A tenancy in common 
D) A settlor tenancy 
E) A tenancy by the entirety 
A) A co-owner tenancy 
B) A joint tenancy 
C) A tenancy in common 
D) A settlor tenancy 
E) A tenancy by the entirety

Question 10

The person setting up a trust is called the:

Accepted Answer

A) grantor. 
B) trustee. 
C) attorney. 
D) beneficiary. 
E) owner. 
A) grantor. 
B) trustee. 
C) attorney. 
D) beneficiary. 
E) owner.

Question 11

A document that precisely states the treatments a person wants if he or she becomes terminally ill is called a(n):

Accepted Answer

A) living will. 
B) ethical will. 
C) memorandum. 
D) letter of instructions. 
E) codicil. 
A) living will. 
B) ethical will. 
C) memorandum. 
D) letter of instructions. 
E) codicil.

Question 12

Which of the following statements about the review of estate plans is true?

Accepted Answer

A) Estate planning and review is a very simple process that doesn't require professional assistance. 
B) Periodic reviews and revisions are required to update the plan. 
C) Life events like disability and job change do not influence the review of estate plans. 
D) Estates are exempted from taxes when there is an intestacy, which makes a review process redundant. 
E) Transfer costs are not applicable to the transfer of estates and, therefore, will not affect the review plan. 
A) Estate planning and review is a very simple process that doesn't require professional assistance. 
B) Periodic reviews and revisions are required to update the plan. 
C) Life events like disability and job change do not influence the review of estate plans. 
D) Estates are exempted from taxes when there is an intestacy, which makes a review process redundant. 
E) Transfer costs are not applicable to the transfer of estates and, therefore, will not affect the review plan.

Question 13

If the amount of stock in the gross estate represents a substantial holding in a company, then the value subject to the tax will be reduced by the:

Accepted Answer

A) marketability discount. 
B) minority discount. 
C) blockage discount. 
D) property discount. 
E) stock discount. 
A) marketability discount. 
B) minority discount. 
C) blockage discount. 
D) property discount. 
E) stock discount.

Question 14

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

Accepted Answer

A) True 
 B)False

Question 15

If the ownership of a closely held company is less than 50% of the stock, then the ownership is termed a:

Accepted Answer

A) minority interest. 
B) majority interest. 
C) marketable asset. 
D) block asset. 
E) blockage discount. 
A) minority interest. 
B) majority interest. 
C) marketable asset. 
D) block asset. 
E) blockage discount.

Question 16

The taxable estate is less than the adjusted gross estate.

Accepted Answer

A) True 
 B)False

Question 17

Jane and Arthur Patrikson are happy that their daughter is graduating from high school. They gift their daughter $25,000, with $12,500 being paid out of Mr. Patrikson's account and the remaining from Mrs. Patrikson's account. What will be the gift tax payable by the Patriksons on account of the above transaction?

Accepted Answer

A) $2,800 
B) $1,800 
C) $1,000 
D) $400 
E) $0 
A) $2,800 
B) $1,800 
C) $1,000 
D) $400 
E) $0

Question 18

A unified transfer tax (UTT)credit is unique to an individual.

Accepted Answer

A) True 
 B)False

Question 19

A grantor is also called the:

Accepted Answer

A) heir. 
B) beneficiary. 
C) joint owner. 
D) settlor. 
E) attorney. 
A) heir. 
B) beneficiary. 
C) joint owner. 
D) settlor. 
E) attorney.

Question 20

A _____ gives the rights of survivorship to the other owner of a property.

Accepted Answer

A) joint tenancy 
B) grantor property 
C) tenancy in common 
D) tenancy by the beneficiary 
E) community property 
A) joint tenancy 
B) grantor property 
C) tenancy in common 
D) tenancy by the beneficiary 
E) community property

The transfer of an estate (after death)by an individual to the _____ of the individual will result in the most favorable tax treatments.

The unused unified transfer tax (UTT)credit can be used by the:

The gross estate includes all property you own that is subject to federal estate taxes at your death.

You could gift any number of people _____ per year without having to pay any gift taxes.

When the first spouse dies, then any unused applicable exclusion is lost and cannot be used.

Since 2011, a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

Estate planning requires the knowledge of wills, trusts, and taxes.

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

_____ has no right of survivorship.

The person setting up a trust is called the:

A document that precisely states the treatments a person wants if he or she becomes terminally ill is called a(n):

Which of the following statements about the review of estate plans is true?

If the amount of stock in the gross estate represents a substantial holding in a company, then the value subject to the tax will be reduced by the:

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

If the ownership of a closely held company is less than 50% of the stock, then the ownership is termed a:

The taxable estate is less than the adjusted gross estate.

A unified transfer tax (UTT)credit is unique to an individual.

A grantor is also called the:

A _____ gives the rights of survivorship to the other owner of a property.

Understanding the Financial Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, Etfs, and Real Estate

Planning for Retirement

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Exam 15: Preserving Your Estate

The transfer of an estate (after death)by an individual to the _____ of the individual will result in the most favorable tax treatments.

The unused unified transfer tax (UTT)credit can be used by the:

The gross estate includes all property you own that is subject to federal estate taxes at your death.

You could gift any number of people _____ per year without having to pay any gift taxes.

When the first spouse dies, then any unused applicable exclusion is lost and cannot be used.

Since 2011, a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

Estate planning requires the knowledge of wills, trusts, and taxes.

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

_____ has no right of survivorship.

The person setting up a trust is called the:

A document that precisely states the treatments a person wants if he or she becomes terminally ill is called a(n):

Which of the following statements about the review of estate plans is true?

If the amount of stock in the gross estate represents a substantial holding in a company, then the value subject to the tax will be reduced by the:

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

If the ownership of a closely held company is less than 50% of the stock, then the ownership is termed a:

The taxable estate is less than the adjusted gross estate.

A unified transfer tax (UTT)credit is unique to an individual.

A grantor is also called the:

A _____ gives the rights of survivorship to the other owner of a property.

Understanding the Financial Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, Etfs, and Real Estate

Planning for Retirement

Filters