Question 1

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 E

Question 2

A trust designed to help couples gain full use out of each spouse's applicable exclusion amount (AEA) is the _____ trust.

Accepted Answer

A)  Crummey 
B)  credit shelter 
C)  charitable lead 
D)  special needs 
E)  charitable remainder 
A)  Crummey 
B)  credit shelter 
C)  charitable lead 
D)  special needs 
E)  charitable remainder B

Question 3

To minimize the transfer tax at death, individuals must transfer it to their siblings.

Accepted Answer

A) True 
 B)False  False

Question 4

A living will may be viewed as a type of advance medical directive.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: 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. 
A major objective of estate planning is to [ minimize tax exposure | enhance current income ].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

Which of the following is an advantage of giving gifts?

Accepted Answer

A)  Gifts avoid depreciation in value. 
B)  Gift tax exclusion attracts more estate tax. 
C)  Marital deduction allows gifts to be tax free. 
D)  The annual inclusion amount increases with gifts. 
E)  There is no tax exemption for charitable contributions. 
A)  Gifts avoid depreciation in value. 
B)  Gift tax exclusion attracts more estate tax. 
C)  Marital deduction allows gifts to be tax free. 
D)  The annual inclusion amount increases with gifts. 
E)  There is no tax exemption for charitable contributions.

Question 7

Medical bills for a final illness is an example of a second-level death-related cost.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: 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. 
In 2017, the U.S. House of Representatives voted to eliminate the [ gift | estate ] tax in 2026.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 9

Insufficient capital can cause problems in estate planning.

Accepted Answer

A) True 
 B)False

Question 10

A husband and wife may give a gift of $30,000 to a single donee and incur no tax.

Accepted Answer

A) True 
 B)False

Question 11

The person setting up a trust is called the:

Accepted Answer

A)  grantor. 
B)  trustee. 
C)  attorney. 
D)  executor . 
E)  administrator . 
A)  grantor. 
B)  trustee. 
C)  attorney. 
D)  executor . 
E)  administrator .

Question 12

The taxable estate is less than the adjusted gross estate.

Accepted Answer

A) True 
 B)False

Question 13

The unified tax credit can be applied against the:

Accepted Answer

A)  total income of the beneficiary of a will. 
B)  tentative tax on the estate tax base. 
C)  adjusted gross estate. 
D)  total estate taxes. 
E)  gross estate. 
A)  total income of the beneficiary of a will. 
B)  tentative tax on the estate tax base. 
C)  adjusted gross estate. 
D)  total estate taxes. 
E)  gross estate.

Question 14

A form of joint ownership that may exist only between husband and wife is:

Accepted Answer

A)  joint tenancy. 
B)  joint tenancy with the right of survivorship. 
C)  joint tenancy without the right of survivorship. 
D)  tenancy in common. 
E)  tenancy by the entirety. 
A)  joint tenancy. 
B)  joint tenancy with the right of survivorship. 
C)  joint tenancy without the right of survivorship. 
D)  tenancy in common. 
E)  tenancy by the entirety.

Question 15

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 16

A _____ has no right of survivorship.

Accepted Answer

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

Question 17

The majority of Americans do not have valid wills.

Accepted Answer

A) True 
 B)False

Question 18

The applicable exclusion amount (AEA) from estate tax for 2018 was:

Accepted Answer

A)  $2,410,000. 
B)  $3,780,000. 
C)  $5,430,000. 
D)  $7,820,000. 
E)  $11,180,000. 
A)  $2,410,000. 
B)  $3,780,000. 
C)  $5,430,000. 
D)  $7,820,000. 
E)  $11,180,000.

Question 19

INSTRUCTIONS: 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 want to create a living trust that provides tax advantages, you will need to establish [ a revocable | an irrevocable ] living trust.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

INSTRUCTIONS: 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 estate planning process consists of [ five | seven ] important steps.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

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

A trust designed to help couples gain full use out of each spouse's applicable exclusion amount (AEA) is the _____ trust.

To minimize the transfer tax at death, individuals must transfer it to their siblings.

A living will may be viewed as a type of advance medical directive.

INSTRUCTIONS: 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. A major objective of estate planning is to [ minimize tax exposure | enhance current income ].

Which of the following is an advantage of giving gifts?

Medical bills for a final illness is an example of a second-level death-related cost.

Insufficient capital can cause problems in estate planning.

A husband and wife may give a gift of $30,000 to a single donee and incur no tax.

The person setting up a trust is called the:

The taxable estate is less than the adjusted gross estate.

The unified tax credit can be applied against the:

A form of joint ownership that may exist only between husband and wife is:

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:

A _____ has no right of survivorship.

The majority of Americans do not have valid wills.

The applicable exclusion amount (AEA) from estate tax for 2018 was:

INSTRUCTIONS: 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 estate planning process consists of [ five | seven ] important steps.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Filters

Exam 15: Preserving Your Estate

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

A trust designed to help couples gain full use out of each spouse's applicable exclusion amount (AEA) is the _____ trust.

To minimize the transfer tax at death, individuals must transfer it to their siblings.

A living will may be viewed as a type of advance medical directive.

INSTRUCTIONS: 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. A major objective of estate planning is to [ minimize tax exposure | enhance current income ].

Which of the following is an advantage of giving gifts?

Medical bills for a final illness is an example of a second-level death-related cost.

Insufficient capital can cause problems in estate planning.

A husband and wife may give a gift of $30,000 to a single donee and incur no tax.

The person setting up a trust is called the:

The taxable estate is less than the adjusted gross estate.

The unified tax credit can be applied against the:

A form of joint ownership that may exist only between husband and wife is:

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:

A _____ has no right of survivorship.

The majority of Americans do not have valid wills.

The applicable exclusion amount (AEA) from estate tax for 2018 was:

INSTRUCTIONS: 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 estate planning process consists of [ five | seven ] important steps.

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

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 and Real Estate

Planning for Retirement

Filters