Question 1

A large percentage of people do little or nothing to provide for those who will survive them.

Accepted Answer

A) True 
 B)False

Question 2

Every adult should have a written will.

Accepted Answer

A) True 
 B)False

Question 3

A codicil is a document that explains, adds, or deletes provisions in your existing will.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a part of estate planning?

Accepted Answer

A)  Making a will 
B)  Setting up a trust 
C)  Accumulating funds for your future 
D)  Providing for your family's financial security after you die 
E)  All of these are part of estate planning. 
A)  Making a will 
B)  Setting up a trust 
C)  Accumulating funds for your future 
D)  Providing for your family's financial security after you die 
E)  All of these are part of estate planning.

Question 5

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Accepted Answer

A) True 
 B)False

Question 6

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her. What type of document would be best for her to prepare?

Accepted Answer

A)  Ethical will 
B)  Durable power of attorney 
C)  Letter of last instruction 
D)  Codicil 
E)  Formal will 
A)  Ethical will 
B)  Durable power of attorney 
C)  Letter of last instruction 
D)  Codicil 
E)  Formal will

Question 7

A testamentary trust is a trust established by your will that becomes effective upon your death.

Accepted Answer

A) True 
 B)False

Question 8

How many months after your death is the federal estate tax due and payable in cash?

Accepted Answer

A)  3 
B)  6 
C)  9 
D)  12 
E)  15 
A)  3 
B)  6 
C)  9 
D)  12 
E)  15

Question 9

A qualified personal residence trust, or QPRT, lets you get your home or vacation home out of your estate.

Accepted Answer

A) True 
 B)False

Question 10

Millions of nontraditional households have unique estate planning problems.

Accepted Answer

A) True 
 B)False

Question 11

Explain what a will is and what occurs at your death if you do not have one.

Accepted Answer

The answer of Explain what a will is and what...

Question 12

A living will is a good substitute for a traditional will.

Accepted Answer

A) True 
 B)False

Question 13

According to a recent American Association of Retired Persons (AARP) survey, over 40 percent of Americans age 45 or older have not drawn up a will.

Accepted Answer

A) True 
 B)False

Question 14

An estate tax is a federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death.

Accepted Answer

A) True 
 B)False

Question 15

Generally, the cost of writing a will is more than that for writing a living trust.

Accepted Answer

A) True 
 B)False

Question 16

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Accepted Answer

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

Question 17

One of the advantages of a living trust is that property held in it avoids probate at your death.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following statements is correct?

Accepted Answer

A)  Estate planning frequently involves the use of life insurance. 
B)  Most people do extensive estate planning. 
C)  Most people think they will live forever. 
D)  People should not worry about estate planning until they are age 65. 
E)  Estate planning is really only necessary if you are wealthy. 
A)  Estate planning frequently involves the use of life insurance. 
B)  Most people do extensive estate planning. 
C)  Most people think they will live forever. 
D)  People should not worry about estate planning until they are age 65. 
E)  Estate planning is really only necessary if you are wealthy.

Question 19

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person 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 20

Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various investments worth $600,000 and other personal assets worth $25,000. What are these things to Gerald?

Accepted Answer

A)  Estate 
B)  Will 
C)  Trust 
D)  Probate 
E)  Liabilities 
A)  Estate 
B)  Will 
C)  Trust 
D)  Probate 
E)  Liabilities

A large percentage of people do little or nothing to provide for those who will survive them.

Every adult should have a written will.

A codicil is a document that explains, adds, or deletes provisions in your existing will.

Which of the following is a part of estate planning?

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her. What type of document would be best for her to prepare?

A testamentary trust is a trust established by your will that becomes effective upon your death.

How many months after your death is the federal estate tax due and payable in cash?

A qualified personal residence trust, or QPRT, lets you get your home or vacation home out of your estate.

Millions of nontraditional households have unique estate planning problems.

Explain what a will is and what occurs at your death if you do not have one.

A living will is a good substitute for a traditional will.

According to a recent American Association of Retired Persons (AARP) survey, over 40 percent of Americans age 45 or older have not drawn up a will.

An estate tax is a federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death.

Generally, the cost of writing a will is more than that for writing a living trust.

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

One of the advantages of a living trust is that property held in it avoids probate at your death.

Which one of the following statements is correct?

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various investments worth $600,000 and other personal assets worth $25,000. What are these things to Gerald?

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 large percentage of people do little or nothing to provide for those who will survive them.

Every adult should have a written will.

A codicil is a document that explains, adds, or deletes provisions in your existing will.

Which of the following is a part of estate planning?

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her. What type of document would be best for her to prepare?

A testamentary trust is a trust established by your will that becomes effective upon your death.

How many months after your death is the federal estate tax due and payable in cash?

A qualified personal residence trust, or QPRT, lets you get your home or vacation home out of your estate.

Millions of nontraditional households have unique estate planning problems.

Explain what a will is and what occurs at your death if you do not have one.

A living will is a good substitute for a traditional will.

According to a recent American Association of Retired Persons (AARP) survey, over 40 percent of Americans age 45 or older have not drawn up a will.

An estate tax is a federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death.

Generally, the cost of writing a will is more than that for writing a living trust.

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

One of the advantages of a living trust is that property held in it avoids probate at your death.

Which one of the following statements is correct?

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various investments worth $600,000 and other personal assets worth $25,000. What are these things to Gerald?

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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