Exam 2: Estate Planning

What is true of charitable remainder unitrusts?

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?

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?

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?

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?

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?

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?

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?

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

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

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

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?

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

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

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?

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?

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

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

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

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?