Question 1

Provide a description of the basic features and clauses found in a will. What might invalidate your will?

Accepted Answer

The introductory statement identifies th

Question 2

If a family has young children, or there are children from a previous marriage, then a trust is probably the best way to go for estate planning.

Accepted Answer

A) True 
 B)False

Question 3

During the lifetime of Jack and his wife, they acquired assets individually and as members of former marriages. During their marriage, they acquired more joint property, but his wife left all of her estate to her children. Upon his wife's death, Jack would have received the other half of their ________.

Accepted Answer

A)  property owned as joint tenants with right of survivorship 
B)  community property, if residents of a community property state 
C)  property owned as tenants by the entirety 
D)  All of the above. 
E)  Only A and C. 
A)  property owned as joint tenants with right of survivorship 
B)  community property, if residents of a community property state 
C)  property owned as tenants by the entirety 
D)  All of the above. 
E)  Only A and C.

Question 4

All of the following features are common to a basic will except

Accepted Answer

A)  introductory statement. 
B)  payment of debt and taxes clause. 
C)  disposition of property clause. 
D)  establishment of a trust. 
E)  appointment clause. 
A)  introductory statement. 
B)  payment of debt and taxes clause. 
C)  disposition of property clause. 
D)  establishment of a trust. 
E)  appointment clause.

Question 5

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

Accepted Answer

A)  blood relatives 
B)  siblings 
C)  your biological children 
D)  anyone regardless to how they are related to you 
E)  none of the above 
A)  blood relatives 
B)  siblings 
C)  your biological children 
D)  anyone regardless to how they are related to you 
E)  none of the above

Question 6

________ is a type of ownership where two or more individuals share asset ownership, but the asset is passed to the deceased owner's estate and is distributed according to his or her will.

Accepted Answer

A)  Survivorship tenancy 
B)  Ownership tenancy 
C)  Tenancy in common 
D)  Tenancy without distribution 
E)  Joint tenancy with the right of survivorship 
A)  Survivorship tenancy 
B)  Ownership tenancy 
C)  Tenancy in common 
D)  Tenancy without distribution 
E)  Joint tenancy with the right of survivorship

Question 7

________ is a type of ownership that exists only between married couples.

Accepted Answer

A)  Survivorship tenancy 
B)  Tenancy by the entirety 
C)  Common tenancy 
D)  Marriage tenancy 
E)  Conjugal tenancy 
A)  Survivorship tenancy 
B)  Tenancy by the entirety 
C)  Common tenancy 
D)  Marriage tenancy 
E)  Conjugal tenancy

Question 8

Through joint tenancy in common, George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Accepted Answer

A) True 
 B)False

Question 9

The process of determining what your heirs will receive from your estate occurs in which step of the estate planning process?

Accepted Answer

A)  step 1 
B)  step 2 
C)  step 3 
D)  step 4 
E)  step 5 
A)  step 1 
B)  step 2 
C)  step 3 
D)  step 4 
E)  step 5

Question 10

A trust in which you relinquish title and control of the assets when they are placed in the trust, which becomes a separate legal entity, is called a(n) ________.

Accepted Answer

A)  family trust 
B)  revocable living trust 
C)  irrevocable living trust 
D)  testamentary trust 
A)  family trust 
B)  revocable living trust 
C)  irrevocable living trust 
D)  testamentary trust

Question 11

Which of the following does not have to be paid out of your estate before distribution to your heirs?

Accepted Answer

A)  legal fees 
B)  funeral expenses 
C)  outstanding debt 
D)  estate and inheritance taxes 
E)  All of the above must be paid prior to the distribution of assets. 
A)  legal fees 
B)  funeral expenses 
C)  outstanding debt 
D)  estate and inheritance taxes 
E)  All of the above must be paid prior to the distribution of assets.

Question 12

What methods exist to avoid probate, or to establish non-probate property?

Accepted Answer

A)  gifts 
B)  trusts 
C)  contracts like life insurance and retirement plans 
D)  joint ownership 
E)  all of the above 
A)  gifts 
B)  trusts 
C)  contracts like life insurance and retirement plans 
D)  joint ownership 
E)  all of the above

Question 13

Under joint tenancy with the right of survivorship, two or more individuals share ownership of the assets; when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

Accepted Answer

A) True 
 B)False

Question 14

Herbert Dix picked up a booklet at his attorney's office that described estate planning. All of the following were included as primary objectives of estate planning except

Accepted Answer

A)  distribute property according to your wishes and provide for your dependents. 
B)  develop a plan that will minimize estate and inheritance taxes. 
C)  develop a plan that minimizes settlement costs, including legal and accounting fees. 
D)  utilize a living will to describe your choices in a terminal situation and a health care proxy to identify those to whom you relinquish health care decision-making authority in the event of physical or mental impairment. 
E)  estate planning involves all of the above objectives. 
A)  distribute property according to your wishes and provide for your dependents. 
B)  develop a plan that will minimize estate and inheritance taxes. 
C)  develop a plan that minimizes settlement costs, including legal and accounting fees. 
D)  utilize a living will to describe your choices in a terminal situation and a health care proxy to identify those to whom you relinquish health care decision-making authority in the event of physical or mental impairment. 
E)  estate planning involves all of the above objectives.

Question 15

Individuals to whom you have willed your property are known as executors.

Accepted Answer

A) True 
 B)False

Question 16

What should you do once your will has been drawn up?

Accepted Answer

Signing the will in the presen

Question 17

Madonna is a famous singer; as such, she may select to settle her estate through a trust because of which reason(s)?

Accepted Answer

A)  trusts are harder to challenge 
B)  trusts reduce estate taxes 
C)  trusts provide confidentiality 
D)  trusts allow for professional management. 
E)  All of the above 
A)  trusts are harder to challenge 
B)  trusts reduce estate taxes 
C)  trusts provide confidentiality 
D)  trusts allow for professional management. 
E)  All of the above

Question 18

The difference between a testamentary trust and a living trust is that a testamentary trust ________.

Accepted Answer

A)  is written by an attorney 
B)  is created by a will 
C)  exists only after probate 
D)  is controlled by the heirs 
E)  Both B and C . 
A)  is written by an attorney 
B)  is created by a will 
C)  exists only after probate 
D)  is controlled by the heirs 
E)  Both B and C .

Question 19

The law allows you to give $25,000 per year tax free in 2011 to as many people as you'd like.

Accepted Answer

A) True 
 B)False

Question 20

A trust is created when a grantor transfers property to a trustee for the benefit of one or more people.

Accepted Answer

A) True 
 B)False

Provide a description of the basic features and clauses found in a will. What might invalidate your will?

If a family has young children, or there are children from a previous marriage, then a trust is probably the best way to go for estate planning.

All of the following features are common to a basic will except

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

________ is a type of ownership where two or more individuals share asset ownership, but the asset is passed to the deceased owner's estate and is distributed according to his or her will.

________ is a type of ownership that exists only between married couples.

Through joint tenancy in common, George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

The process of determining what your heirs will receive from your estate occurs in which step of the estate planning process?

A trust in which you relinquish title and control of the assets when they are placed in the trust, which becomes a separate legal entity, is called a(n) ________.

Which of the following does not have to be paid out of your estate before distribution to your heirs?

What methods exist to avoid probate, or to establish non-probate property?

Under joint tenancy with the right of survivorship, two or more individuals share ownership of the assets; when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

Herbert Dix picked up a booklet at his attorney's office that described estate planning. All of the following were included as primary objectives of estate planning except

Individuals to whom you have willed your property are known as executors.

What should you do once your will has been drawn up?

Madonna is a famous singer; as such, she may select to settle her estate through a trust because of which reason(s)?

The difference between a testamentary trust and a living trust is that a testamentary trust ________.

The law allows you to give $25,000 per year tax free in 2011 to as many people as you'd like.

A trust is created when a grantor transfers property to a trustee for the benefit of one or more people.

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

Provide a description of the basic features and clauses found in a will. What might invalidate your will?

If a family has young children, or there are children from a previous marriage, then a trust is probably the best way to go for estate planning.

All of the following features are common to a basic will except

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

________ is a type of ownership where two or more individuals share asset ownership, but the asset is passed to the deceased owner's estate and is distributed according to his or her will.

________ is a type of ownership that exists only between married couples.

Through joint tenancy in common, George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

The process of determining what your heirs will receive from your estate occurs in which step of the estate planning process?

A trust in which you relinquish title and control of the assets when they are placed in the trust, which becomes a separate legal entity, is called a(n) ________.

Which of the following does not have to be paid out of your estate before distribution to your heirs?

What methods exist to avoid probate, or to establish non-probate property?

Under joint tenancy with the right of survivorship, two or more individuals share ownership of the assets; when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

Herbert Dix picked up a booklet at his attorney's office that described estate planning. All of the following were included as primary objectives of estate planning except

Individuals to whom you have willed your property are known as executors.

What should you do once your will has been drawn up?

Madonna is a famous singer; as such, she may select to settle her estate through a trust because of which reason(s)?

The difference between a testamentary trust and a living trust is that a testamentary trust ________.

The law allows you to give $25,000 per year tax free in 2011 to as many people as you'd like.

A trust is created when a grantor transfers property to a trustee for the benefit of one or more people.

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