Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Identify three advantages and three disadvantages of irrevocable living trusts.

Accepted Answer

Advantages of irrevocable living trusts include:
∙ Assets avoid probate.
∙ No estate taxes are imposed on appreciation of assets when you die.
∙ Income earned on assets can be directed to the beneficiary,which can result in tax savings if the beneficiary is in a lower tax bracket.
Disadvantages of irrevocable living trusts include:
∙ There is no control over assets in the trust
∙ Assets cannot be used for loan collateral.
∙ The cost of setting up the irrevocable trust may be more than the probate costs you are trying to avoid.

Question 4

Provide some common sense approaches to estate planning.

Accepted Answer

Begin today by writing a will.Value your

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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

Accepted Answer

A)  Increase 
B)  Decrease 
C)  Remain the same 
D)  None of the above 
A)  Increase 
B)  Decrease 
C)  Remain the same 
D)  None of the above

Question 8

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

Accepted Answer

A)  receptor. 
B)  receptee. 
C)  obtainee. 
D)  beneficiary. 
E)  none of the above. 
A)  receptor. 
B)  receptee. 
C)  obtainee. 
D)  beneficiary. 
E)  none of the above.

Question 9

Your estate tax burden can be reduced by giving gifts to your heirs prior to your death.This has the effect of reducing the value of your estate and thus lowering your tax obligation.As of 2011,each spouse can give up to $________ each year to ________.

Accepted Answer

A)  7,000; 2 people 
B)  8,000; 3 people 
C)  9,000; 4 people 
D)  10,000; 5 people 
E)  14,000; as many people as you like 
A)  7,000; 2 people 
B)  8,000; 3 people 
C)  9,000; 4 people 
D)  10,000; 5 people 
E)  14,000; as many people as you like

Question 10

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?

Accepted Answer

A)  Specific power of attorney 
B)  Revocable power of attorney 
C)  Incapacitated power of attorney 
D)  Durable power of attorney 
E)  None of the above 
A)  Specific power of attorney 
B)  Revocable power of attorney 
C)  Incapacitated power of attorney 
D)  Durable power of attorney 
E)  None of the above

Question 11

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

Accepted Answer

A) True 
 B)False

Question 12

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Accepted Answer

A) True 
 B)False

Question 13

Identify three advantages and three disadvantages of revocable living trusts.

Accepted Answer

Advantages of revocable living trusts in

Question 14

The law allows you to give $25,000 per year tax free in 2015 to as many people as you'd like.

Accepted Answer

A) True 
 B)False

Question 15

If you were to create a trust by your will,which becomes active only after you die,then you have created a(n)________.

Accepted Answer

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

Question 16

Describe the typical funeral and administrative expenses.

Accepted Answer

Typical funeral expenses include burial

Question 17

One in 10 American adults who do not have any elements of an estate plan in place say that they haven't created a plan because they don't want to think about dying or becoming incapacitated.

Accepted Answer

A) True 
 B)False

Question 18

Which feature makes it possible for a married couple to transfer up to $10.68 million and avoid federal estate tax,all without having to use a family trust?

Accepted Answer

A)  Propaganda 
B)  Portability 
C)  Sustainability 
D)  Revocable 
A)  Propaganda 
B)  Portability 
C)  Sustainability 
D)  Revocable

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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?

Accepted Answer

A)  Without a will the court will choose Brenda's and Terry's guardian(s). 
B)  Without a will the court will appoint an administrator for the estate. 
C)  The children's best interests may not be served without a will. 
D)  Without a will, the estate administration fees may cost more, thus leaving less to heirs. 
E)  All of the above are reasons Carey should have a will. 
A)  Without a will the court will choose Brenda's and Terry's guardian(s). 
B)  Without a will the court will appoint an administrator for the estate. 
C)  The children's best interests may not be served without a will. 
D)  Without a will, the estate administration fees may cost more, thus leaving less to heirs. 
E)  All of the above are reasons Carey should have a will.

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

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

Identify three advantages and three disadvantages of irrevocable living trusts.

Provide some common sense approaches to estate planning.

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

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.

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

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

Your estate tax burden can be reduced by giving gifts to your heirs prior to your death.This has the effect of reducing the value of your estate and thus lowering your tax obligation.As of 2011,each spouse can give up to $ each year to .

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?

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Identify three advantages and three disadvantages of revocable living trusts.

The law allows you to give $25,000 per year tax free in 2015 to as many people as you'd like.

If you were to create a trust by your will,which becomes active only after you die,then you have created a(n)________.

Describe the typical funeral and administrative expenses.

One in 10 American adults who do not have any elements of an estate plan in place say that they haven't created a plan because they don't want to think about dying or becoming incapacitated.

Which feature makes it possible for a married couple to transfer up to $10.68 million and avoid federal estate tax,all without having to use a family trust?

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

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?

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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 16: Estate Planning: Saving Your Heirs Money and Headaches

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

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

Identify three advantages and three disadvantages of irrevocable living trusts.

Provide some common sense approaches to estate planning.

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

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.

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

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

Your estate tax burden can be reduced by giving gifts to your heirs prior to your death.This has the effect of reducing the value of your estate and thus lowering your tax obligation.As of 2011,each spouse can give up to $________ each year to ________.

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?

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Identify three advantages and three disadvantages of revocable living trusts.

The law allows you to give $25,000 per year tax free in 2015 to as many people as you'd like.

If you were to create a trust by your will,which becomes active only after you die,then you have created a(n)________.

Describe the typical funeral and administrative expenses.

One in 10 American adults who do not have any elements of an estate plan in place say that they haven't created a plan because they don't want to think about dying or becoming incapacitated.

Which feature makes it possible for a married couple to transfer up to $10.68 million and avoid federal estate tax,all without having to use a family trust?

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

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?

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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

Your estate tax burden can be reduced by giving gifts to your heirs prior to your death.This has the effect of reducing the value of your estate and thus lowering your tax obligation.As of 2011,each spouse can give up to $ each year to .