Question 1

What type of spouse does not qualify for the unlimited marital deduction?

Accepted Answer

A) A second spouse 
B) A same-sex spouse 
C) A non-U.S. citizen's spouse 
D) A spouse of fewer than 2 years 
A) A second spouse 
B) A same-sex spouse 
C) A non-U.S. citizen's spouse 
D) A spouse of fewer than 2 years

Question 2

There are no amounts of property that may qualify for the marital deduction; however at the death of the husband the wife was given other property. The interest of the property transferred to another. What is governs this situation?

Accepted Answer

A) Terminal interest rule 
B) Terminal interest dates 
C) Terminal interest and payout exceptions 
D) Terminal interest and exemptions 
A) Terminal interest rule 
B) Terminal interest dates 
C) Terminal interest and payout exceptions 
D) Terminal interest and exemptions

Question 3

Installment notes are transfer techniques that provide for payment of the purchase price over a period of years. What triggers a self-canceling installment note?

Accepted Answer

A) Death of the person holding the note. 
B) The seller has changed their minds about the sell. 
C) The buyer changes their mind about the purchase. 
D) All of the above. 
A) Death of the person holding the note. 
B) The seller has changed their minds about the sell. 
C) The buyer changes their mind about the purchase. 
D) All of the above.

Question 4

What type of agreement is a contract binding the owner of a business interest to sell the business interest for a specified or determined price at his or her death or disability?

Accepted Answer

A) Personal Holding Agreement 
B) Stock Recapitalization 
C) Partnership Capital Freeze 
D) Buy-sell Agreement 
A) Personal Holding Agreement 
B) Stock Recapitalization 
C) Partnership Capital Freeze 
D) Buy-sell Agreement

Question 5

What term is defined as giving authority to another entity to act on the behalf of the individual and has a durable feature?

Accepted Answer

A) Power of Attorney 
B) Durable Feature 
C) Wills 
D) Transfer of Contract 
A) Power of Attorney 
B) Durable Feature 
C) Wills 
D) Transfer of Contract

Question 6

Calvin wants to know the characteristics of a charitable remainder trust. What is true of these trusts?

Accepted Answer

A) There must be at least one non-charitable income beneficiary. 
B) There must be at least two non-charitable income beneficiaries. 
C) There must not be any no other entity beyond qualified charities. 
D) None of the above. 
A) There must be at least one non-charitable income beneficiary. 
B) There must be at least two non-charitable income beneficiaries. 
C) There must not be any no other entity beyond qualified charities. 
D) None of the above.

Question 7

When dealing with property titling, what deals with property that has been acquired by the efforts of either spouse during their marriage while living in a community property state?

Accepted Answer

A) Community Property 
B) Marriage Law 
C) Common Law 
D) Law of Matrimony 
A) Community Property 
B) Marriage Law 
C) Common Law 
D) Law of Matrimony

Question 8

Samantha wants to have great flexibility of a trust she is considering creating and wants to determine the standard for incompetency. What would her best option to meet her needs?

Accepted Answer

A) Conservatorship 
B) Durable power of attorney 
C) Living trust 
D) None of the above 
A) Conservatorship 
B) Durable power of attorney 
C) Living trust 
D) None of the above

Question 9

Joe doesn't want to be worried with issues concerning his estate and rather have someone else make decisions concerning the property. What does Joe need?

Accepted Answer

A) Power of Attorney 
B) Crummey Provisions 
C) Power of Appointment 
D) Limited Power 
A) Power of Attorney 
B) Crummey Provisions 
C) Power of Appointment 
D) Limited Power

Question 10

Betsy's husband just died. After 45 years of marriage she isn't very upset. But she is concerned that her stepchildren from his prior marriage will force her to sell the house they bought their first year of marriage to get a portion of the sale price. What is true of Betsy's situation?

Accepted Answer

A) The selling of her home is decided by what is said in her dead husband's will. 
B) The selling of her home is decided by what is said within her dead husbands trust. 
C) At the death of a co-owner, the decedent's interest automatically passes to the surviving owners. 
D) All of the above. 
A) The selling of her home is decided by what is said in her dead husband's will. 
B) The selling of her home is decided by what is said within her dead husbands trust. 
C) At the death of a co-owner, the decedent's interest automatically passes to the surviving owners. 
D) All of the above.

Question 11

What is true of pooled income funds?

Accepted Answer

A) Additional contributions are allowed 
B) Sprinkling is not allowed 
C) The funds cannot invest in tax-exempt securities. 
D) All of the above. 
A) Additional contributions are allowed 
B) Sprinkling is not allowed 
C) The funds cannot invest in tax-exempt securities. 
D) All of the above.

Question 12

There are many ways to obtain deductions from and credits for estate taxes. What is/are a method (s)?

Accepted Answer

A) Inter-spousal Gifting 
B) Foreign Death Taxes 
C) Funeral, debts, and losses 
D) All of the above 
A) Inter-spousal Gifting 
B) Foreign Death Taxes 
C) Funeral, debts, and losses 
D) All of the above

Question 13

Atticus just refused a broken down mansion due to the amount of work it needs. Now the original estate plan needs changing. What is the best option for post-mortem estate planning in this situation?

Accepted Answer

A) IRD tax deductions 
B) Qualified Disclaimers 
C) Both A and B 
D) Neither A nor B 
A) IRD tax deductions 
B) Qualified Disclaimers 
C) Both A and B 
D) Neither A nor B

Question 14

A trust is created to hold, manage, and distribute assets to beneficiaries as indicated by the grantor of the trust. There are three major parties to a trust and two principal forms of trusts. What is/are the primary reason (s) to transfer through trusts?

Accepted Answer

A) To provide for multiple beneficiaries. 
B) To avoid probate. 
C) Both A and B. 
D) Neither A nor B. 
A) To provide for multiple beneficiaries. 
B) To avoid probate. 
C) Both A and B. 
D) Neither A nor B.

Question 15

What occurs when the donee agrees to pay any gift tax due?

Accepted Answer

A) Net Gifts 
B) Liability Gifts 
C) Taxable Gifts 
D) Voluntary Gifts 
A) Net Gifts 
B) Liability Gifts 
C) Taxable Gifts 
D) Voluntary Gifts

Question 16

Which of the following is true regarding planning for estate liquidity?

Accepted Answer

A) You should calculate the liquidity needs over the course of one year at a time 
B) The IRS allows for estate tax payment deferral elections, which you can use to improve liquidity 
C) The decedent's final expenses should be paid before forming an estate 
D) The best estate liquidity strategies are uncompromising 
A) You should calculate the liquidity needs over the course of one year at a time 
B) The IRS allows for estate tax payment deferral elections, which you can use to improve liquidity 
C) The decedent's final expenses should be paid before forming an estate 
D) The best estate liquidity strategies are uncompromising

Question 17

Joseph wants Margaret to handle everything when he dies. Margaret is a lawyer and has strong integrity. What would Margaret's title be once Joseph dies and she begins dealing with his affairs?

Accepted Answer

A) Fiduciary 
B) Executor 
C) Custodian 
D) All of the above 
A) Fiduciary 
B) Executor 
C) Custodian 
D) All of the above

Question 18

What type of trust gives a spouse a right to income, as well as access to principal for purposes of health, education, support, or maintenance, without the property being included in his or her estate at death?

Accepted Answer

A) Credit Trust 
B) Minimization Trust 
C) Bypass Trust 
D) Foreign Tax Trust 
A) Credit Trust 
B) Minimization Trust 
C) Bypass Trust 
D) Foreign Tax Trust

Question 19

What transfer technique provides for payment of the purchase price over a period of years?

Accepted Answer

A) Private Annuities 
B) Transfer of Trust 
C) Buy-sell Agreements 
D) Installment Notes 
A) Private Annuities 
B) Transfer of Trust 
C) Buy-sell Agreements 
D) Installment Notes

Question 20

What is the purpose of grantor retained income trusts (GRIT)?

Accepted Answer

A) To avoid paying all tax types 
B) To avoid paying gift tax 
C) To avoid paying estate tax 
D) All of the above 
A) To avoid paying all tax types 
B) To avoid paying gift tax 
C) To avoid paying estate tax 
D) All of the above

What type of spouse does not qualify for the unlimited marital deduction?

There are no amounts of property that may qualify for the marital deduction; however at the death of the husband the wife was given other property. The interest of the property transferred to another. What is governs this situation?

Installment notes are transfer techniques that provide for payment of the purchase price over a period of years. What triggers a self-canceling installment note?

What type of agreement is a contract binding the owner of a business interest to sell the business interest for a specified or determined price at his or her death or disability?

What term is defined as giving authority to another entity to act on the behalf of the individual and has a durable feature?

Calvin wants to know the characteristics of a charitable remainder trust. What is true of these trusts?

When dealing with property titling, what deals with property that has been acquired by the efforts of either spouse during their marriage while living in a community property state?

Samantha wants to have great flexibility of a trust she is considering creating and wants to determine the standard for incompetency. What would her best option to meet her needs?

Joe doesn't want to be worried with issues concerning his estate and rather have someone else make decisions concerning the property. What does Joe need?

Betsy's husband just died. After 45 years of marriage she isn't very upset. But she is concerned that her stepchildren from his prior marriage will force her to sell the house they bought their first year of marriage to get a portion of the sale price. What is true of Betsy's situation?

What is true of pooled income funds?

There are many ways to obtain deductions from and credits for estate taxes. What is/are a method (s)?

Atticus just refused a broken down mansion due to the amount of work it needs. Now the original estate plan needs changing. What is the best option for post-mortem estate planning in this situation?

A trust is created to hold, manage, and distribute assets to beneficiaries as indicated by the grantor of the trust. There are three major parties to a trust and two principal forms of trusts. What is/are the primary reason (s) to transfer through trusts?

What occurs when the donee agrees to pay any gift tax due?

Which of the following is true regarding planning for estate liquidity?

Joseph wants Margaret to handle everything when he dies. Margaret is a lawyer and has strong integrity. What would Margaret's title be once Joseph dies and she begins dealing with his affairs?

What type of trust gives a spouse a right to income, as well as access to principal for purposes of health, education, support, or maintenance, without the property being included in his or her estate at death?

What transfer technique provides for payment of the purchase price over a period of years?

What is the purpose of grantor retained income trusts (GRIT)?

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Exam 2: Estate Planning

What type of spouse does not qualify for the unlimited marital deduction?

There are no amounts of property that may qualify for the marital deduction; however at the death of the husband the wife was given other property. The interest of the property transferred to another. What is governs this situation?

Installment notes are transfer techniques that provide for payment of the purchase price over a period of years. What triggers a self-canceling installment note?

What type of agreement is a contract binding the owner of a business interest to sell the business interest for a specified or determined price at his or her death or disability?

What term is defined as giving authority to another entity to act on the behalf of the individual and has a durable feature?

Calvin wants to know the characteristics of a charitable remainder trust. What is true of these trusts?

When dealing with property titling, what deals with property that has been acquired by the efforts of either spouse during their marriage while living in a community property state?

Samantha wants to have great flexibility of a trust she is considering creating and wants to determine the standard for incompetency. What would her best option to meet her needs?

Joe doesn't want to be worried with issues concerning his estate and rather have someone else make decisions concerning the property. What does Joe need?

Betsy's husband just died. After 45 years of marriage she isn't very upset. But she is concerned that her stepchildren from his prior marriage will force her to sell the house they bought their first year of marriage to get a portion of the sale price. What is true of Betsy's situation?

What is true of pooled income funds?

There are many ways to obtain deductions from and credits for estate taxes. What is/are a method (s)?

Atticus just refused a broken down mansion due to the amount of work it needs. Now the original estate plan needs changing. What is the best option for post-mortem estate planning in this situation?

A trust is created to hold, manage, and distribute assets to beneficiaries as indicated by the grantor of the trust. There are three major parties to a trust and two principal forms of trusts. What is/are the primary reason (s) to transfer through trusts?

What occurs when the donee agrees to pay any gift tax due?

Which of the following is true regarding planning for estate liquidity?

Joseph wants Margaret to handle everything when he dies. Margaret is a lawyer and has strong integrity. What would Margaret's title be once Joseph dies and she begins dealing with his affairs?

What type of trust gives a spouse a right to income, as well as access to principal for purposes of health, education, support, or maintenance, without the property being included in his or her estate at death?

What transfer technique provides for payment of the purchase price over a period of years?

What is the purpose of grantor retained income trusts (GRIT)?

Education Planning

Education Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

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