Question 1

A prenuptial agreement is a documentary agreement between spouses after marriage.

Accepted Answer

A) True 
 B)False

Question 2

In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?

Accepted Answer

A)  Tenancy by default 
B)  Tenancy by the entirety 
C)  Tenants in common 
D)  Joint tenants with the right of survivorship 
E)  Tenancy by performance 
A)  Tenancy by default 
B)  Tenancy by the entirety 
C)  Tenants in common 
D)  Joint tenants with the right of survivorship 
E)  Tenancy by performance

Question 3

An inheritance tax is levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person.

Accepted Answer

A) True 
 B)False

Question 4

A federal and state tax levied on the privilege of making gifts to others is called a(n) ____________ tax.

Accepted Answer

A)  estate income 
B)  trust income 
C)  inheritance 
D)  gift 
E)  estate 
A)  estate income 
B)  trust income 
C)  inheritance 
D)  gift 
E)  estate

Question 5

A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a:

Accepted Answer

A)  letter of last instruction. 
B)  ethical will. 
C)  prenuptial agreement. 
D)  codicil. 
E)  pourover will. 
A)  letter of last instruction. 
B)  ethical will. 
C)  prenuptial agreement. 
D)  codicil. 
E)  pourover will.

Question 6

If only a few changes are needed in your will, adding a codicil may be the best choice.

Accepted Answer

A) True 
 B)False

Question 7

Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Accepted Answer

A) True 
 B)False

Question 8

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n):

Accepted Answer

A)  beneficiary. 
B)  executor. 
C)  trustee. 
D)  guardian. 
E)  executrix. 
A)  beneficiary. 
B)  executor. 
C)  trustee. 
D)  guardian. 
E)  executrix.

Question 9

The state law sets the fees for executors, whether professionals or friends.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following wills is called an "I love you" will?

Accepted Answer

A)  Simple 
B)  Traditional marital share 
C)  Exemption trust 
D)  Stated dollar amount 
E)  Holographic 
A)  Simple 
B)  Traditional marital share 
C)  Exemption trust 
D)  Stated dollar amount 
E)  Holographic

Question 11

Estate planning has two parts. The first part consists of:

Accepted Answer

A)  building your estate through savings, investments, and insurance. 
B)  transferring your estate in the manner you have specified. 
C)  deciding who is going to get what. 
D)  evaluating your assets and liabilities. 
E)  planning for the period right after you die. 
A)  building your estate through savings, investments, and insurance. 
B)  transferring your estate in the manner you have specified. 
C)  deciding who is going to get what. 
D)  evaluating your assets and liabilities. 
E)  planning for the period right after you die.

Question 12

You can assign a power of attorney to anyone you choose.

Accepted Answer

A) True 
 B)False

Question 13

A(n) ____________ trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A)  guardian 
B)  trustee 
C)  living 
D)  power of attorney 
E)  estate 
A)  guardian 
B)  trustee 
C)  living 
D)  power of attorney 
E)  estate

Question 14

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Accepted Answer

A)  Marital share 
B)  Statutory 
C)  Formal 
D)  Exemption trust 
E)  Living 
A)  Marital share 
B)  Statutory 
C)  Formal 
D)  Exemption trust 
E)  Living

Question 15

Which one of the following statements is correct regarding wills?

Accepted Answer

A)  Only married people need a will. 
B)  Only married people with dependents need a will. 
C)  Only the rich with considerable estates need a will. 
D)  Every adult should have a will. 
E)  Only senior citizens need a will. 
A)  Only married people need a will. 
B)  Only married people with dependents need a will. 
C)  Only the rich with considerable estates need a will. 
D)  Every adult should have a will. 
E)  Only senior citizens need a will.

Question 16

Gary Ruhle has assets worth $2,400,000. Since he plans to travel and does not want to oversee these assets, he has created a legal arrangement so the assets can be managed by an officer of his local bank. What type of legal arrangement has he most likely made?

Accepted Answer

A)  Guardianship 
B)  Statutory will 
C)  Trust agreement 
D)  Living will 
E)  Letter of instruction 
A)  Guardianship 
B)  Statutory will 
C)  Trust agreement 
D)  Living will 
E)  Letter of instruction

Question 17

Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children. After he dies, there is a legal process to determine whether his document specifying how his assets be divided is valid. This is also the legal process by which his executor manages and distributes his property. What is this legal process called?

Accepted Answer

A)  Estate 
B)  Will 
C)  Trust 
D)  Probate 
E)  Terms of distribution 
A)  Estate 
B)  Will 
C)  Trust 
D)  Probate 
E)  Terms of distribution

Question 18

A credit-shelter trust is perhaps the most common estate-planning trust.

Accepted Answer

A) True 
 B)False

Question 19

A disclaimer trust is designed for the couple who don't yet have enough assets to need a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 20

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Accepted Answer

A)  Simple 
B)  Traditional marital share 
C)  Exemption trust 
D)  Stated dollar amount 
E)  A/B trust 
A)  Simple 
B)  Traditional marital share 
C)  Exemption trust 
D)  Stated dollar amount 
E)  A/B trust

A prenuptial agreement is a documentary agreement between spouses after marriage.

In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?

An inheritance tax is levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person.

A federal and state tax levied on the privilege of making gifts to others is called a(n) ____________ tax.

A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a:

If only a few changes are needed in your will, adding a codicil may be the best choice.

Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n):

The state law sets the fees for executors, whether professionals or friends.

Which one of the following wills is called an "I love you" will?

Estate planning has two parts. The first part consists of:

You can assign a power of attorney to anyone you choose.

A(n) ____________ trust is a property management arrangement that you establish while you are alive.

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Which one of the following statements is correct regarding wills?

Gary Ruhle has assets worth $2,400,000. Since he plans to travel and does not want to oversee these assets, he has created a legal arrangement so the assets can be managed by an officer of his local bank. What type of legal arrangement has he most likely made?

A credit-shelter trust is perhaps the most common estate-planning trust.

A disclaimer trust is designed for the couple who don't yet have enough assets to need a credit-shelter trust.

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

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Exam 19: Estate Planning

A prenuptial agreement is a documentary agreement between spouses after marriage.

In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?

An inheritance tax is levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person.

A federal and state tax levied on the privilege of making gifts to others is called a(n) ____________ tax.

A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a:

If only a few changes are needed in your will, adding a codicil may be the best choice.

Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n):

The state law sets the fees for executors, whether professionals or friends.

Which one of the following wills is called an "I love you" will?

Estate planning has two parts. The first part consists of:

You can assign a power of attorney to anyone you choose.

A(n) ____________ trust is a property management arrangement that you establish while you are alive.

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Which one of the following statements is correct regarding wills?

Gary Ruhle has assets worth $2,400,000. Since he plans to travel and does not want to oversee these assets, he has created a legal arrangement so the assets can be managed by an officer of his local bank. What type of legal arrangement has he most likely made?

A credit-shelter trust is perhaps the most common estate-planning trust.

A disclaimer trust is designed for the couple who don't yet have enough assets to need a credit-shelter trust.

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Filters