Exam 16: Estate Planning: Saving Your Heirs Money and Headaches

Within Herbert's will he designates ________ who are willed his property,an ________ who will be responsible for carrying out the provisions of the will,and a(n)________ who will care for any of his children under age ________.

The executor is the individual who is responsible for carrying out the provisions of your will.

The federal estate tax exemption is $5.34 million per person.Recently,lawmakers ruled that the exempted amount held by the first to die would be transferable to the surviving spouse.Therefore,a married couple can now avoid federal estate taxes with combined assets of up to $10.68 million even without good estate planning.

A qualified terminable interest property trust 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.

What is/are advantage(s)to establishing a trust?

Alfred has appointed an executor in his will.This person will be responsible for