Question 1

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  attorney. 
B)  lease. 
C)  executor. 
D)  receptor. 
E)  none of the above. 
A)  attorney. 
B)  lease. 
C)  executor. 
D)  receptor. 
E)  none of the above.

Question 3

In which kind of trust can you place your assets while still alive?

Accepted Answer

A)  A revocable living trust 
B)  Sprinkling trust 
C)  An irrevocable living trust 
D)  None of the above 
E)  Both A and C above 
A)  A revocable living trust 
B)  Sprinkling trust 
C)  An irrevocable living trust 
D)  None of the above 
E)  Both A and C above

Question 4

If you die without one,your state will "write one for you" based on intestacy laws.

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 7

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?

Accepted Answer

A)  Tenancy in common 
B)  Community property 
C)  Joint tenancy with the right of survivorship 
D)  Tenancy by the entirety 
A)  Tenancy in common 
B)  Community property 
C)  Joint tenancy with the right of survivorship 
D)  Tenancy by the entirety

Question 8

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

Accepted Answer

A)  proxy. 
B)  codicil. 
C)  letter of last instructions. 
D)  revocation. 
E)  none of the above. 
A)  proxy. 
B)  codicil. 
C)  letter of last instructions. 
D)  revocation. 
E)  none of the above.

Question 9

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

Accepted Answer

A)  Legal fees and court costs must be paid. 
B)  The will is validated. 
C)  There are typically executor fees for settling the estate (unless the executor is a family member who chooses only to be reimbursed for expenses). 
D)  Costs of probate can equal 1 to 8 percent of the value of the estate. 
E)  The process may be slow, particularly if someone challenges the will. 
A)  Legal fees and court costs must be paid. 
B)  The will is validated. 
C)  There are typically executor fees for settling the estate (unless the executor is a family member who chooses only to be reimbursed for expenses). 
D)  Costs of probate can equal 1 to 8 percent of the value of the estate. 
E)  The process may be slow, particularly if someone challenges the will.

Question 10

The unified tax credit effectively nullifies the taxes on the first $5.34 million of one's estate.

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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 13

John Kennedy Jr.and his wife Caroline both perished in the same plane crash.Which of the following clauses would identify who is assumed to have perished first?

Accepted Answer

A)  Appointment clause 
B)  Common disaster clause 
C)  Attestation clause 
D)  Witness clause 
E)  Bimodal death clause 
A)  Appointment clause 
B)  Common disaster clause 
C)  Attestation clause 
D)  Witness clause 
E)  Bimodal death clause

Question 14

A durable health care power of attorney allows you to designate another person to make life support decisions if you are unable to.

Accepted Answer

A) True 
 B)False

Question 15

In most states,community property is recognized and trumps any allocations in your will.

Accepted Answer

A) True 
 B)False

Question 16

The legal procedure that establishes the validity of a will,and then distributes the assets of the estate including the payment of any taxes,is called

Accepted Answer

A)  probate. 
B)  verification. 
C)  certification hearing. 
D)  establishment hearing. 
A)  probate. 
B)  verification. 
C)  certification hearing. 
D)  establishment hearing.

Question 17

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

Accepted Answer

There is no limit to the size of transfe

Question 18

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?

Accepted Answer

A)  Whoever is named as her executor 
B)  Whoever is named in her living will 
C)  Whoever is named in her durable power of attorney 
D)  Whoever is named in her durable health care power of attorney 
A)  Whoever is named as her executor 
B)  Whoever is named in her living will 
C)  Whoever is named in her durable power of attorney 
D)  Whoever is named in her durable health care power of attorney

Question 19

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

Accepted Answer

A)  attestation and witness clause 
B)  payment of debt and taxes clause 
C)  common disaster clause 
D)  disposition of property clause 
E)  introductory statement 
A)  attestation and witness clause 
B)  payment of debt and taxes clause 
C)  common disaster clause 
D)  disposition of property clause 
E)  introductory statement

Question 20

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.

Accepted Answer

A)  juvenile attorney 
B)  guardian 
C)  proxy 
D)  godparent 
E)  none of the above 
A)  juvenile attorney 
B)  guardian 
C)  proxy 
D)  godparent 
E)  none of the above

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

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

In which kind of trust can you place your assets while still alive?

If you die without one,your state will "write one for you" based on intestacy laws.

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

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

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?

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

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

The unified tax credit effectively nullifies the taxes on the first $5.34 million of one's estate.

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.

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

John Kennedy Jr.and his wife Caroline both perished in the same plane crash.Which of the following clauses would identify who is assumed to have perished first?

A durable health care power of attorney allows you to designate another person to make life support decisions if you are unable to.

In most states,community property is recognized and trumps any allocations in your will.

The legal procedure that establishes the validity of a will,and then distributes the assets of the estate including the payment of any taxes,is called

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

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

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.

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

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

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

In which kind of trust can you place your assets while still alive?

If you die without one,your state will "write one for you" based on intestacy laws.

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

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

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?

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

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

The unified tax credit effectively nullifies the taxes on the first $5.34 million of one's estate.

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.

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

John Kennedy Jr.and his wife Caroline both perished in the same plane crash.Which of the following clauses would identify who is assumed to have perished first?

A durable health care power of attorney allows you to designate another person to make life support decisions if you are unable to.

In most states,community property is recognized and trumps any allocations in your will.

The legal procedure that establishes the validity of a will,and then distributes the assets of the estate including the payment of any taxes,is called

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

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

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.

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