Exam 2: Estate Planning

According to the Certified Financial Planner Board of Standards, Inc. who is to explain to clients the estate planning process?

Property held in a trust is called the principle, regardless of type of property. A trust is to ensure beneficiaries receive property from the grantor. What is a trust to do with assets of the trust?

Which of the following might you work with to analyze estate liquidity?

Sheila was is 96 years old and paid-off her mortgage 60 years ago. The price of the house was a whopping $23,000. The date of death is used for valuation purposes. At this time, if Sheila gifts her house to her grandson, what method would be used to determine federal transfer taxes?

Peggy and Lenard, at their death, wish to transfer their property to their great-grandson, the only one they actually like. What will the IRS impose on the gift?

Jack's daughter has creditors seeking money from her, over $70,000 is owed by his daughter. He is currently creating a will, what provision would Jack be wise to include?

What is the distinguishing feature of charitable lead trusts?

Mr. Rich lived and died in Missouri and owns real estate in New Jersey. What should his will contain to address this issue?

The term "gross-up" deals with the taxation of what?

Nancy is afraid that she will be hit by a car and be disable or incapable to act on her own behalf. She wants to plan for her children's guardianship. What parties is not involved with the process?

Matt doesn't own any property, but is worth millions that collects high levels of interest income. He wants to forward the interest income to beneficiaries. What type of trust does Matt need?

What is true of IRC Section 2056 (d)?

Tony wants to avoid both public proceedings and the need to determine the status of the principal when planning for incapacity planning. What is his best option for what he wants?

Jeff is taking a test to become a financial planner. The test wants to know what a living will is also known as:

What are gifts made during life, which are either in excess of a donor's annual exemption or are not a present interest?

What is true of charitable remainder unitrusts?

Judi is confused about taxes, gifts, and unified credit. She can't figure it all out. What would you tell her about unified credit?

Stock can be given as a gift. However, what percent of the adjusted gross estate must be kept to qualify for the Section 303 redemption?

Tracy is designing a gifting program and is concerned with the buildup of revenue in the estate and taxes. What would you recommend Tracy to do?

Joan and Seth decided to leave their only son a substantial gift of property and monies. They are not sure what to do to ensure compliance with filing requirements. What form must they fill out after giving a gift?