Question 1

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?

Accepted Answer

A) They must be non-qualifying organizations. 
B) One can transfer to qualified charities without incurring federal gift tax. 
C) The gift must be in the form of real estate. 
D) All of the above. 
A) They must be non-qualifying organizations. 
B) One can transfer to qualified charities without incurring federal gift tax. 
C) The gift must be in the form of real estate. 
D) All of the above.

Question 2

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

Accepted Answer

A) Attorneys 
B) Tax preparers 
C) Insurance agents 
D) All of the above 
A) Attorneys 
B) Tax preparers 
C) Insurance agents 
D) All of the above

Question 3

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?

Accepted Answer

A) The ward. 
B) The judge. 
C) The guardian. 
D) The state. 
A) The ward. 
B) The judge. 
C) The guardian. 
D) The state.

Question 4

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?

Accepted Answer

A) 40 percent. 
B) 35 percent. 
C) 50 percent. 
D) 10 percent. 
A) 40 percent. 
B) 35 percent. 
C) 50 percent. 
D) 10 percent.

Question 5

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 6

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?

Accepted Answer

A) Power of Attorney 
B) Crummey Provisions 
C) 5 or 5 Power 
D) Limited Power 
A) Power of Attorney 
B) Crummey Provisions 
C) 5 or 5 Power 
D) Limited Power

Question 7

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

Question 8

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 9

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?

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 10

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 11

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

Accepted Answer

A) The taxpayer has the right to pay taxes in lieu of using the unified credit. 
B) Taxes due is not on the dollar-for-dollar basis. 
C) The credit must be used the first time a gift tax or an estate tax is required to be paid. 
D) All of the above. 
A) The taxpayer has the right to pay taxes in lieu of using the unified credit. 
B) Taxes due is not on the dollar-for-dollar basis. 
C) The credit must be used the first time a gift tax or an estate tax is required to be paid. 
D) All of the above.

Question 12

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

Accepted Answer

A) Power of Attorney 
B) Crummey Provisions 
C) 5 or 5 Power 
D) Limited Power 
A) Power of Attorney 
B) Crummey Provisions 
C) 5 or 5 Power 
D) Limited Power

Question 13

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

Accepted Answer

A) Income 
B) Gifts 
C) Property costs 
D) General taxation 
A) Income 
B) Gifts 
C) Property costs 
D) General taxation

Question 14

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?

Accepted Answer

A) The trustee 
B) A lawyer will to take his money. 
C) Who will sign the uniform Transfer to Minors Act. 
D) He has determined all that he needs to. 
A) The trustee 
B) A lawyer will to take his money. 
C) Who will sign the uniform Transfer to Minors Act. 
D) He has determined all that he needs to.

Question 15

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?

Accepted Answer

A) Joint tenancy with right of survivorship. 
B) Tenancy in common. 
C) Tenancy by the entireties. 
D) Will 
A) Joint tenancy with right of survivorship. 
B) Tenancy in common. 
C) Tenancy by the entireties. 
D) Will

Question 16

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 17

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?

Accepted Answer

A) Simple Trust 
B) Irrevocable Living Trust 
C) Complex Trust 
D) Revocable Trust 
A) Simple Trust 
B) Irrevocable Living Trust 
C) Complex Trust 
D) Revocable Trust

Question 18

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 19

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?

Accepted Answer

A) Hold the assets 
B) Manage the assets 
C) Distribute the assets 
D) All of the above. 
A) Hold the assets 
B) Manage the assets 
C) Distribute the assets 
D) All of the above.

Question 20

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?

Accepted Answer

A) Perpetuity Clause 
B) Sprinkling Provision 
C) Spendthrift Clause 
D) Support Provision 
A) Perpetuity Clause 
B) Sprinkling Provision 
C) Spendthrift Clause 
D) Support Provision

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?

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

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?

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?

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

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?

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

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

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?

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

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

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

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

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?

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?

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?

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?

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

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?

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?

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Estate Planning

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General Principles of Financial Planning

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Professional Conduct and Regulation

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Retirement Savings and Income Planning

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Exam 2: Estate Planning

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?

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

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?

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?

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

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?

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

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

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?

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

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

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

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

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?

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?

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?

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?

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

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?

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?

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

Filters