Question 1

A trustee is the person who writes a will.

Accepted Answer

A) True 
 B)False

Question 2

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 most states, generally any person of sound mind and age [ 18 | 21 ] may make out a will.

Accepted Answer

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

Question 3

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. 
Generally, a gift's increase in value after it was given is [ included in | excluded from ] the donor's estate.

Accepted Answer

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

Question 4

Which of the following best describes a situation of intestacy?

Accepted Answer

A)  George has insufficient medical insurance to cover the cost of medical treatment he needs. 
B)  Jill died without heirs. 
C)  Eduardo became physically challenged after he was injured in a car accident. 
D)  Lily died without a valid will. 
E)  Mason died without any probate property. 
A)  George has insufficient medical insurance to cover the cost of medical treatment he needs. 
B)  Jill died without heirs. 
C)  Eduardo became physically challenged after he was injured in a car accident. 
D)  Lily died without a valid will. 
E)  Mason died without any probate property.

Question 5

You have a spouse, two children, three brothers, one grandchild, and a living father. If you died without a valid will, the person(s) most likely to receive the proceeds of your estate would be your:

Accepted Answer

A)  grandchild. 
B)  spouse. 
C)  father. 
D)  brothers. 
E)  children. 
A)  grandchild. 
B)  spouse. 
C)  father. 
D)  brothers. 
E)  children.

Question 6

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. 
With a revocable living trust, the value of the assets placed into the trust [ do | do not ] become public knowledge.

Accepted Answer

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

Question 7

The objective of estate planning is to:

Accepted Answer

A)  avoid the disposition of assets to the possible beneficiaries. 
B)  maximize the taxes involved in the transfer of assets. 
C)  create a situation of intestacy. 
D)  determine how to invest the estate's assets after your death. 
E)  maximize the usefulness of people's assets during their lives. 
A)  avoid the disposition of assets to the possible beneficiaries. 
B)  maximize the taxes involved in the transfer of assets. 
C)  create a situation of intestacy. 
D)  determine how to invest the estate's assets after your death. 
E)  maximize the usefulness of people's assets during their lives.

Question 8

Your gross estate is reduced by _____ to determine the adjusted gross estate.

Accepted Answer

A)  the state death tax credit 
B)  the orphan's deduction 
C)  the marital deduction 
D)  funeral and administrative expenses 
E)  the previous year's income tax 
A)  the state death tax credit 
B)  the orphan's deduction 
C)  the marital deduction 
D)  funeral and administrative expenses 
E)  the previous year's income tax

Question 9

The unified rate schedule applies to federal _____ taxes.

Accepted Answer

A)  sales and gift 
B)  gift and service 
C)  gift and estate 
D)  infrastructure and estate 
E)  estate and professional 
A)  sales and gift 
B)  gift and service 
C)  gift and estate 
D)  infrastructure and estate 
E)  estate and professional

Question 10

Which of the following leads to the breakup of an estate?

Accepted Answer

A)  Death-related costs 
B)  The presence of probate estates 
C)  The proper use of vehicles of transfer 
D)  Highly liquid assets 
E)  The availability of a will 
A)  Death-related costs 
B)  The presence of probate estates 
C)  The proper use of vehicles of transfer 
D)  Highly liquid assets 
E)  The availability of a will

Question 11

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. 
You need to make a minor revision in your will. You should write a [ codicil | new will ].

Accepted Answer

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

Question 12

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 13

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 14

An advantage of a(n) _____ trust is that it provides for management continuity and income flow even after the grantor's death and allows assets to bypass probate.

Accepted Answer

A)  revocable living 
B)  ethical living 
C)  testamentary 
D)  charitable lead 
E)  credit shelter 
A)  revocable living 
B)  ethical living 
C)  testamentary 
D)  charitable lead 
E)  credit shelter

Question 15

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. 
Legal title to the property in a trust is held by the [ grantor | trustee ].

Accepted Answer

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

Question 16

A letter of last instructions is a(n):

Accepted Answer

A)  legal document that authorizes another person to take over someone's financial affairs and act on his or her behalf. 
B)  document that precisely states the treatments a person wants if he or she becomes terminally ill. 
C)  written power of attorney authorizing an individual to make health care decisions on behalf of the principal when the principal is unable to make such decisions. 
D)  informal memorandum that is separate from a will and contains suggestions or recommendations for carrying out a decedent's wishes. 
E)  personal statement left for family, friends, and community that shares your values, blessings, life's lessons, and hopes and dreams for the future. 
A)  legal document that authorizes another person to take over someone's financial affairs and act on his or her behalf. 
B)  document that precisely states the treatments a person wants if he or she becomes terminally ill. 
C)  written power of attorney authorizing an individual to make health care decisions on behalf of the principal when the principal is unable to make such decisions. 
D)  informal memorandum that is separate from a will and contains suggestions or recommendations for carrying out a decedent's wishes. 
E)  personal statement left for family, friends, and community that shares your values, blessings, life's lessons, and hopes and dreams for the future.

Question 17

All states require one witness to the testator's signing of the will.

Accepted Answer

A) True 
 B)False

Question 18

A decedent's unused unified transfer tax (UTT) credit can be used by his or her:

Accepted Answer

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

Question 19

A document that legally modifies a will without revoking it is called a(n):

Accepted Answer

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

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. 
A letter of last instructions [ is | is not ] a legally enforceable document.

Accepted Answer

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

A trustee is the person who writes a will.

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 most states, generally any person of sound mind and age [ 18 | 21 ] may make out a will.

Which of the following best describes a situation of intestacy?

You have a spouse, two children, three brothers, one grandchild, and a living father. If you died without a valid will, the person(s) most likely to receive the proceeds of your estate would be your:

The objective of estate planning is to:

Your gross estate is reduced by _____ to determine the adjusted gross estate.

The unified rate schedule applies to federal _____ taxes.

Which of the following leads to the breakup of an estate?

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. You need to make a minor revision in your will. You should write a [ codicil | new will ].

A grantor is also called the:

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

An advantage of a(n) _____ trust is that it provides for management continuity and income flow even after the grantor's death and allows assets to bypass probate.

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. Legal title to the property in a trust is held by the [ grantor | trustee ].

A letter of last instructions is a(n):

All states require one witness to the testator's signing of the will.

A decedent's unused unified transfer tax (UTT) credit can be used by his or her:

A document that legally modifies a will without revoking it is called a(n):

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 letter of last instructions [ is | is not ] a legally enforceable document.

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

A trustee is the person who writes a will.

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 most states, generally any person of sound mind and age [ 18 | 21 ] may make out a will.

Which of the following best describes a situation of intestacy?

You have a spouse, two children, three brothers, one grandchild, and a living father. If you died without a valid will, the person(s) most likely to receive the proceeds of your estate would be your:

The objective of estate planning is to:

Your gross estate is reduced by _____ to determine the adjusted gross estate.

The unified rate schedule applies to federal _____ taxes.

Which of the following leads to the breakup of an estate?

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. You need to make a minor revision in your will. You should write a [ codicil | new will ].

A grantor is also called the:

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

An advantage of a(n) _____ trust is that it provides for management continuity and income flow even after the grantor's death and allows assets to bypass probate.

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. Legal title to the property in a trust is held by the [ grantor | trustee ].

A letter of last instructions is a(n):

All states require one witness to the testator's signing of the will.

A decedent's unused unified transfer tax (UTT) credit can be used by his or her:

A document that legally modifies a will without revoking it is called a(n):

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 letter of last instructions [ is | is not ] a legally enforceable document.

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