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

For most married couples, tenancy by the entirety is the best way to establish ownership.

An attachment to a will that alters or amends a portion of the will is called a ________.

We may prepare a ________ to appoint someone to legally act on our behalf in the event we become mentally incapacitated and a ________ to state our wishes in the event of a terminal illness or injury.

You and your brother have decided to invest in the stock market together. You will put in $5,000 each and open a single account at a brokerage. How should the ownership of this account be established if both of you wish the other to keep all the money in the event that the other should die?

Alfred has appointed an executor in his will. This person will be responsible for ________ .

If you give $13,000 as a gift to someone who is not a blood relative, you will pay taxes on these funds and so will the recipient.

The individual you name who will care for your minor aged children is known as their ________.

Because Toby and Jenny's children are under the age of 18 they should name a ________ to care for them and manage their property should Toby and Jenny pass away.

What steps would you take in the estate planning process?

Someone who receives assets or money from a person after death is called the deceased's ________.

Estate planning is important because it protects your family against major catastrophes and helps keep taxes to a minimum.

You and your roommate have decided to purchase a house together. If you want your share of the asset to pass on to your relatives named in your will, what type of ownership should you establish for the house?

A ________ provides a directive to a physician that allows you to state your wishes regarding medical treatment in the event of a terminal illness or injury that renders you unable to make decisions regarding life support or other medical treatments.

A trust that gives the individual establishing the trust the ability to direct income from the trust to his or her spouse over the spouse's life, and then, at the spouse's death, to choose to whom the assets go is called a

A durable power of attorney means that the attorney who wrote the will for you is your legal guardian in case you become incapacitated and can't make decisions yourself.

In some states, property that is acquired during a marriage is referred to as ________ and upon the death of either spouse, his/her half is distributed according to the will, or if intestate, according to state law.

Carey is a widow with two teenagers, Brenda age 13 and Terry age 15. Her health has declined and she knows that a will should be drafted. Which of the following statements is not an important reason to have a will?

A(n) ________ is a trust established to transfer assets to your children, while allowing the surviving spouse access to funds in the trust, if necessary. Trust assets are distributed to the children tax free upon the death of the surviving spouse.

What is/are advantage(s) to establishing a trust?

An attestation and witness clause is an attachment to a will that alters or amends a portion of the will signed in front of two witnesses.