Question 1

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

Which of the following is a requirement of a valid will?

Accepted Answer

A)  You must be mentally competent when the will is written. 
B)  You can't be under undue influence of another person. 
C)  Your will must conform to the laws of the state. 
D)  All of the above 
E)  Only A and B 
A)  You must be mentally competent when the will is written. 
B)  You can't be under undue influence of another person. 
C)  Your will must conform to the laws of the state. 
D)  All of the above 
E)  Only A and B

Question 5

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

Accepted Answer

A)  $84,000. 
B)  $420,000. 
C)  $3,090,000. 
D)  $3,916,000. 
A)  $84,000. 
B)  $420,000. 
C)  $3,090,000. 
D)  $3,916,000.

Question 6

The introductory statement of a will identifies whose will it is and revokes any prior wills.

Accepted Answer

A) True 
 B)False

Question 7

A will is a legal document that describes how you want your property to be transferred to others.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  executor. 
B)  beneficiary. 
C)  guardian. 
D)  personal representative. 
E)  Only A and B are correct. 
A)  executor. 
B)  beneficiary. 
C)  guardian. 
D)  personal representative. 
E)  Only A and B are correct.

Question 9

Outline the steps in calculating estate taxes.

Accepted Answer

1. Calculate the value of the

Question 10

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 11

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 12

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 13

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.

Accepted Answer

A)  codicil 
B)  letter of last instructions 
C)  living trust 
D)  appointment clause 
E)  attestation and witness clause 
A)  codicil 
B)  letter of last instructions 
C)  living trust 
D)  appointment clause 
E)  attestation and witness clause

Question 14

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

Accepted Answer

Signing the will in the presen

Question 15

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

Accepted Answer

A)  sprinkling trust. 
B)  Q-TIP. 
C)  A-B trust. 
D)  credit-shelter trust. 
E)  unified credit trust. 
A)  sprinkling trust. 
B)  Q-TIP. 
C)  A-B trust. 
D)  credit-shelter trust. 
E)  unified credit trust.

Question 16

There is no limit to the size of transfers that can be made between spouses on a tax-free basis.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A ________ 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 to whomever else the individual wants the funds to go.

Accepted Answer

A)  Q-TIP trust 
B)  sprinkling trust 
C)  family trust 
D)  living trust 
A)  Q-TIP trust 
B)  sprinkling trust 
C)  family trust 
D)  living trust

Question 19

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

Question 20

Which of the following is a disadvantage of joint ownership?

Accepted Answer

A)  Jointly owned assets avoid probate. 
B)  It makes it legal for one party to "take the money and run." 
C)  It discourages compromise in the case of a divorce. 
D)  None of the above is a disadvantage of joint ownership. 
A)  Jointly owned assets avoid probate. 
B)  It makes it legal for one party to "take the money and run." 
C)  It discourages compromise in the case of a divorce. 
D)  None of the above is a disadvantage of joint ownership.

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

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

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

Which of the following is a requirement of a valid will?

The introductory statement of a will identifies whose will it is and revokes any prior wills.

A will is a legal document that describes how you want your property to be transferred to others.

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

Outline the steps in calculating estate taxes.

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

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

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.

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

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

There is no limit to the size of transfers that can be made between spouses on a tax-free basis.

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

A ________ 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 to whomever else the individual wants the funds to go.

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

Which of the following is a disadvantage of joint ownership?

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

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

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

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

Which of the following is a requirement of a valid will?

The introductory statement of a will identifies whose will it is and revokes any prior wills.

A will is a legal document that describes how you want your property to be transferred to others.

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

Outline the steps in calculating estate taxes.

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

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

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.

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

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

There is no limit to the size of transfers that can be made between spouses on a tax-free basis.

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

A ________ 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 to whomever else the individual wants the funds to go.

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

Which of the following is a disadvantage of joint ownership?

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