Exam 2: Estate Planning

Lindy wishes to leave a trust for her niece under the Uniform Transfer to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA). What should she know about these options?

Carter needs a will written but he doesn't want to deal with all the standard formalities of witnesses - he has no friends. What type of will is best suited for Carter?

William and Bill jointly own a business. William hates Bill and had decided to sell his share of the business to Bill to avoid seeing him daily. However, he is concerned about gift taxation and their buy-sell agreement. Under what condition would there be owed taxes?

Craig discusses with his financial planner issues pertaining to time periods for a trust to terminate and be distributed. What is Craig discussing?

Smith received documents that discuss the issues of Testate succession and Interstate succession that has him confused. What is this document about?

Which of the following is NOT a source of estate liquidity?

Janice doesn't want to pay taxes on their estate or on gifts. What power can she attempt to use?

Ted has millions of dollars and wants to spread his fortune to many different people when he dies. What is the preferred method for titling nonrelatives?

Jimmy wants to donate millions to a charity, but he is concerned about paying gift taxes. What should he know about this type of donation?

What does the transfer of property to an irrevocable trust usually results in?

Sally wants to reduce estate taxes by fixing the value of estate assets at current levels. What is this practice called?

Paul placed a gift in an irrevocable trust so that it is converted to a present interest at time of withdrawal. What power is Paul using?

Janis is exchanging an asset to Becky as an unsecured promise to pay an annuity of the life of the transfer. What is this transfer called?

Betsy and Mark is a married couple that just signed a document that can only be signed by them with respect to property. What did Betsy and Mark sign?

Carolina has died and has opted to leave her closely held stock to a charity. The corporation wishes to buy the stock to gain increase power in decisions. The charity has agreed to take the cash. How will the proceeds be treated on the side of the corporation?

What term is defined as providing the testator with an opportunity to control the passing of his or her property and thus avoid intestacy?

Marsha wants to a trust in which the management and distributions of terms are very detailed and would override any authority over trust property. What would be her best option?

Ted has determined that he wants to give millions of dollars away after he dies. He doesn't trust anyone so he decides to develop a trust. He already knows who he is giving his money too, what else must he determine?

What is the percentage of first marriages that end in divorce?

Often there are situations that do not fit traditional situations or secession of inheritance and estate planning for these non-traditional relationships must supplied. There are four major non-traditional situations. Jason and Mike have been living together for thirty years. They know death will come sooner than later. What would be true of estate planning for this couple?