Question 1

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 2

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.

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

Make a list of ways to avoid probate.

Accepted Answer

1. Establish joint ownership.

Question 5

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.

Accepted Answer

A)  letter of last instructions 
B)  revocable will 
C)  living will 
D)  termination letter 
E)  none of the above 
A)  letter of last instructions 
B)  revocable will 
C)  living will 
D)  termination letter 
E)  none of the above

Question 6

Under ________,ownership passes directly on to the surviving owner or owners,bypassing the will.With ________,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Accepted Answer

A)  tenancy in common, community property 
B)  tenancy in common, tenancy by the entirety 
C)  joint tenancy with the right of survivorship, tenancy in common 
D)  joint tenancy, the right of survivorship 
E)  tenancy in the entirety, uncommon tenancy 
A)  tenancy in common, community property 
B)  tenancy in common, tenancy by the entirety 
C)  joint tenancy with the right of survivorship, tenancy in common 
D)  joint tenancy, the right of survivorship 
E)  tenancy in the entirety, uncommon tenancy

Question 7

Which of the following is/are a typical cash need(s)of one's estate?

Accepted Answer

A)  Funeral expenses 
B)  Legal fees 
C)  Outstanding debt 
D)  Estate and inheritance taxes 
E)  All of the above 
A)  Funeral expenses 
B)  Legal fees 
C)  Outstanding debt 
D)  Estate and inheritance taxes 
E)  All of the above

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

You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die,as well as determining decision-making authority should you be physically or mentally impaired.

Accepted Answer

A)  estate planning 
B)  retirement planning 
C)  unified planning 
D)  death establishment 
E)  None of the above is correct. 
A)  estate planning 
B)  retirement planning 
C)  unified planning 
D)  death establishment 
E)  None of the above is correct.

Question 10

What steps would you take in the estate planning process?

Accepted Answer

1. Determine what your estate is worth.

Question 11

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2014?

Accepted Answer

A)  $14,000 per year 
B)  $42,000 per year 
C)  $54,000 per year 
D)  $84,000 per year 
A)  $14,000 per year 
B)  $42,000 per year 
C)  $54,000 per year 
D)  $84,000 per year

Question 12

To determine your estate's net worth,you would

Accepted Answer

A)  add the amount of your estate's assets to the amount of your estate's liabilities. 
B)  add the amount of your estate's accounts receivable to the amount of your estate's assets. 
C)  subtract the amount of your estate's assets from the amount of your estate's liabilities. 
D)  subtract the amount of your estate's liabilities from the amount of your estate's assets. 
E)  ask your lawyer the amount of your estate's worth and deduct it from the amount of your estate's market value. 
A)  add the amount of your estate's assets to the amount of your estate's liabilities. 
B)  add the amount of your estate's accounts receivable to the amount of your estate's assets. 
C)  subtract the amount of your estate's assets from the amount of your estate's liabilities. 
D)  subtract the amount of your estate's liabilities from the amount of your estate's assets. 
E)  ask your lawyer the amount of your estate's worth and deduct it from the amount of your estate's market value.

Question 13

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

Accepted Answer

A)  There may be a prior conflicting will. 
B)  Multiple wills make a mess out of the probate process. 
C)  The probate process will slow down tremendously. 
D)  It could be many years before the heirs receive their inheritance. 
E)  All of the above 
A)  There may be a prior conflicting will. 
B)  Multiple wills make a mess out of the probate process. 
C)  The probate process will slow down tremendously. 
D)  It could be many years before the heirs receive their inheritance. 
E)  All of the above

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

The unified tax credit

Accepted Answer

A)  Allows individuals to give $14,000 tax-free each year to as many people as they like. 
B)  Ensures that almost half of any amount that you pass on beyond the first $3.5 million of an estate will be lost in taxes. 
C)  Lets money be passed down from a grandparent to a grandchild tax-free. 
D)  Essentially nullifies the taxes on the first $5.34 million of an estate. 
A)  Allows individuals to give $14,000 tax-free each year to as many people as they like. 
B)  Ensures that almost half of any amount that you pass on beyond the first $3.5 million of an estate will be lost in taxes. 
C)  Lets money be passed down from a grandparent to a grandchild tax-free. 
D)  Essentially nullifies the taxes on the first $5.34 million of an estate.

Question 16

List some common reasons people use trusts.

Accepted Answer

Trusts avoid probate.
Compared to wills,

Question 17

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

Accepted Answer

A)  sprinkling 
B)  family 
C)  Q-TIP 
D)  revocable 
A)  sprinkling 
B)  family 
C)  Q-TIP 
D)  revocable

Question 18

The first step in estate planning is to determine the value of your estate.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A)  ownership property 
B)  community property 
C)  marriage assets 
D)  common assets 
E)  none of the above 
A)  ownership property 
B)  community property 
C)  marriage assets 
D)  common assets 
E)  none of the above

Question 20

Give five good reasons to have a will.

Accepted Answer

1. to have control over the guardianship

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

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.

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

Make a list of ways to avoid probate.

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.

Under ,ownership passes directly on to the surviving owner or owners,bypassing the will.With ,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Which of the following is/are a typical cash need(s)of one's estate?

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.

You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die,as well as determining decision-making authority should you be physically or mentally impaired.

What steps would you take in the estate planning process?

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2014?

To determine your estate's net worth,you would

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

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.

The unified tax credit

List some common reasons people use trusts.

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

The first step in estate planning is to determine the value of your estate.

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.

Give five good reasons 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

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

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.

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

Make a list of ways to avoid probate.

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.

Under ________,ownership passes directly on to the surviving owner or owners,bypassing the will.With ________,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Which of the following is/are a typical cash need(s)of one's estate?

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.

You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die,as well as determining decision-making authority should you be physically or mentally impaired.

What steps would you take in the estate planning process?

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2014?

To determine your estate's net worth,you would

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

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.

The unified tax credit

List some common reasons people use trusts.

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

The first step in estate planning is to determine the value of your estate.

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.

Give five good reasons 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

Under ,ownership passes directly on to the surviving owner or owners,bypassing the will.With ,when one spouse dies assets become part of the deceased's estate and are distributed through the will.