Exam 17: Estate Planning: Saving Your Heirs Money and Headaches

Ingrid is single with no dependents. She has been in the hospital with a coma for the last 2 weeks. Her bills are piling up and her rent on her apartment is due. Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

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(Multiple Choice)

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Question 1

Correct Answer:

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The main purpose of probate is to make sure the beneficiaries are treated equally.

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(True/False)

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Question 2

Correct Answer:

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False

How can you use the unlimited marital deduction to your advantage?

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(Essay)

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Question 3

Correct Answer:

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There is no limit to the size of transfers between spouses that can be made on a tax-free basis.Also, there is no limit on the value of an estate that can be transferred to a spouse.As a result, all federal taxes can be avoided.But, if the estate is large, lots of planning needs to be done to prepare for when the second spouse dies to avoid or reduce the taxes.In fact, using the unlimited marital deduction may incur more estate taxes, as opposed to sheltering part of the estate from taxation upon the death of the first spouse.
The unlimited marital deduction does not apply to non-citizen spouses.Transfers to non-citizen spouses are limited to the estate and tax-free transfer exemption for the year ($3.5 million in 2009) With specialized estate planning, a trust can be used to reduce or avoid taxation on marital estate transfers to non-citizen spouses.

A married couple with 2 children and 5 grandchildren has an estate valued at $4 million. They decide to use gifts as a means to transfer some of their wealth to their family now and lower the value of their estate. If for a five-year period the couple give the maximum tax-free gift to each of their children and grandchildren, the value of their estate would be reduced to

(Multiple Choice)

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Question 4

The ________ allows for the distribution of money and property in a will.

(Multiple Choice)

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Question 5

Through the portable estate exemption a surviving spouse's exemption amount will do which of the following?

(Multiple Choice)

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Question 6

The unified tax credit

(Multiple Choice)

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Question 7

The correct equation to determine your estate's net worth is: value of your estate ‑level of estate's liabilities.

(True/False)

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Question 8

Provide some common sense approaches to estate planning.

(Essay)

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Question 9

You were almost killed in a recent mountain bike accident and have decided to write a will. You also plan to construct a(n) ________, which will give information and directions with respect to the execution of your will.

(Multiple Choice)

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Question 10

Trusts are much more difficult to challenge in court than are wills which is what makes them more attractive.

(True/False)

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Question 11

A ________ is a trust that distributes income according to need, as determined by the discretion of the trustee rather than according to some preset formula.

(Multiple Choice)

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Question 12

The executor is the individual who is responsible for carrying out the provisions of your will.

(True/False)

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Question 13

All of the following are commonly used estate planning tools except

(Multiple Choice)

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Question 14

What is the name for a document that provides for someone to act in your place for legal and financial matters in the event that you become mentally incapacitated?

(Multiple Choice)

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Question 15

Probate is the legal process of distributing an estate's assets.

(True/False)

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Question 16

An individual who is responsible for carrying out the provisions of your will and managing your property until the estate is passed on to your heirs is called the ________.

(Multiple Choice)

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Question 17

To determine your estate's net worth, you would

(Multiple Choice)

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Question 18

A living will is a directive to a physician that allows you to state your wishes regarding medical treatment in the event you are unable to make decisions for yourself.

(True/False)

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Question 19

Within Herbert's will he designates who are willed his property, an who will be responsible for carrying out the provisions of the will, and a(n) who will care for any of his children under age .

(Multiple Choice)

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Question 20

Showing 1 - 20 of 100

Ingrid is single with no dependents. She has been in the hospital with a coma for the last 2 weeks. Her bills are piling up and her rent on her apartment is due. Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

The main purpose of probate is to make sure the beneficiaries are treated equally.

How can you use the unlimited marital deduction to your advantage?

The ________ allows for the distribution of money and property in a will.

Through the portable estate exemption a surviving spouse's exemption amount will do which of the following?

The unified tax credit

The correct equation to determine your estate's net worth is: value of your estate ‑level of estate's liabilities.

Provide some common sense approaches to estate planning.

You were almost killed in a recent mountain bike accident and have decided to write a will. You also plan to construct a(n) ________, which will give information and directions with respect to the execution of your will.

Trusts are much more difficult to challenge in court than are wills which is what makes them more attractive.

A ________ is a trust that distributes income according to need, as determined by the discretion of the trustee rather than according to some preset formula.

The executor is the individual who is responsible for carrying out the provisions of your will.

All of the following are commonly used estate planning tools except

What is the name for a document that provides for someone to act in your place for legal and financial matters in the event that you become mentally incapacitated?

Probate is the legal process of distributing an estate's assets.

An individual who is responsible for carrying out the provisions of your will and managing your property until the estate is passed on to your heirs is called the ________.

To determine your estate's net worth, you would

A living will is a directive to a physician that allows you to state your wishes regarding medical treatment in the event you are unable to make decisions for yourself.

Within Herbert's will he designates who are willed his property, an who will be responsible for carrying out the provisions of the will, and a(n) who will care for any of his children under age .

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Financial Life Events Fitting the Pieces Together

Filters

Exam 17: Estate Planning: Saving Your Heirs Money and Headaches

Ingrid is single with no dependents. She has been in the hospital with a coma for the last 2 weeks. Her bills are piling up and her rent on her apartment is due. Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

The main purpose of probate is to make sure the beneficiaries are treated equally.

How can you use the unlimited marital deduction to your advantage?

The ________ allows for the distribution of money and property in a will.

Through the portable estate exemption a surviving spouse's exemption amount will do which of the following?

The unified tax credit

The correct equation to determine your estate's net worth is: value of your estate ‑level of estate's liabilities.

Provide some common sense approaches to estate planning.

You were almost killed in a recent mountain bike accident and have decided to write a will. You also plan to construct a(n) ________, which will give information and directions with respect to the execution of your will.

Trusts are much more difficult to challenge in court than are wills which is what makes them more attractive.

A ________ is a trust that distributes income according to need, as determined by the discretion of the trustee rather than according to some preset formula.

The executor is the individual who is responsible for carrying out the provisions of your will.

All of the following are commonly used estate planning tools except

What is the name for a document that provides for someone to act in your place for legal and financial matters in the event that you become mentally incapacitated?

Probate is the legal process of distributing an estate's assets.

An individual who is responsible for carrying out the provisions of your will and managing your property until the estate is passed on to your heirs is called the ________.

To determine your estate's net worth, you would

A living will is a directive to a physician that allows you to state your wishes regarding medical treatment in the event you are unable to make decisions for yourself.

Within Herbert's will he designates ________ who are willed his property, an ________ who will be responsible for carrying out the provisions of the will, and a(n) ________ who will care for any of his children under age ________.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Financial Life Events Fitting the Pieces Together

Filters

Within Herbert's will he designates who are willed his property, an who will be responsible for carrying out the provisions of the will, and a(n) who will care for any of his children under age .