Question 1

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death 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 2

Estate planning is an integral part of financial planning.

Accepted Answer

A) True 
 B)False

Question 3

Estate planning has two parts. The second part of estate planning consists of:

Accepted Answer

A)  building your estate through savings. 
B)  transferring your estate in the manner you have specified. 
C)  deciding who should be your attorney. 
D)  evaluating your assets and liabilities. 
E)  buying life insurance. 
A)  building your estate through savings. 
B)  transferring your estate in the manner you have specified. 
C)  deciding who should be your attorney. 
D)  evaluating your assets and liabilities. 
E)  buying life insurance.

Question 4

Estate planning is not an essential part of retirement planning.

Accepted Answer

A) True 
 B)False

Question 5

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Accepted Answer

A) True 
 B)False

Question 6

Sally Forth has a trust that she can end at any time she wants. What type of trust does Sally have?

Accepted Answer

A)  Revocable trust 
B)  Irrevocable trust 
C)  Bargain trust 
D)  Negotiable trust 
E)  Non-negotiable trust 
A)  Revocable trust 
B)  Irrevocable trust 
C)  Bargain trust 
D)  Negotiable trust 
E)  Non-negotiable trust

Question 7

Which document explains, adds, or deletes provisions in your existing will?

Accepted Answer

A)  Codicil 
B)  Tracer 
C)  Addendum 
D)  Rider 
E)  Floater 
A)  Codicil 
B)  Tracer 
C)  Addendum 
D)  Rider 
E)  Floater

Question 8

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Accepted Answer

A)  Medical directives 
B)  Holographic will 
C)  Formal will 
D)  Letter of last instruction 
E)  Living will 
A)  Medical directives 
B)  Holographic will 
C)  Formal will 
D)  Letter of last instruction 
E)  Living will

Question 9

The cost of preparing a will varies from place to place.

Accepted Answer

A) True 
 B)False

Question 10

Perhaps the most popular form of marital trust is the Q-TIP trust.

Accepted Answer

A) True 
 B)False

Question 11

Which one of the following wills leaves everything to your spouse?

Accepted Answer

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

Question 12

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million. This exemption amount passes into a trust. What type of will has Will created?

Accepted Answer

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

Question 13

A simple will creates lower overall taxation for all individuals.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would keep you from being an executor of a will?

Accepted Answer

A)  Having been convicted of a felony 
B)  Being over 70 years of age 
C)  Being married 
D)  Being a coworker of the deceased 
E)  Being a child of the deceased 
A)  Having been convicted of a felony 
B)  Being over 70 years of age 
C)  Being married 
D)  Being a coworker of the deceased 
E)  Being a child of the deceased

Question 15

Joseph Vu has assets worth $1,200,000. He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death. What is this legal document?

Accepted Answer

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

Question 16

Which of the following is true if you are an unmarried couple?

Accepted Answer

A)  A partner has the same legal rights as a spouse. 
B)  Unmarried couples can use the marital deduction. 
C)  Unmarried couples have less need for estate planning than married couples. 
D)  Unmarried couples face formidable retirement and estate planning challenges. 
E)  All of these are true about unmarried couples. 
A)  A partner has the same legal rights as a spouse. 
B)  Unmarried couples can use the marital deduction. 
C)  Unmarried couples have less need for estate planning than married couples. 
D)  Unmarried couples face formidable retirement and estate planning challenges. 
E)  All of these are true about unmarried couples.

Question 17

Probate is a legal procedure of proving a valid or invalid will.

Accepted Answer

A) True 
 B)False

Question 18

If your beneficiary is too young or unable to handle money wisely, which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Accepted Answer

A)  A spendthrift trust 
B)  A charitable lead trust 
C)  A charitable reminder trust 
D)  A self-declaration trust 
E)  A generation-skipping trust 
A)  A spendthrift trust 
B)  A charitable lead trust 
C)  A charitable reminder trust 
D)  A self-declaration trust 
E)  A generation-skipping trust

Question 19

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) True 
 B)False

Question 20

You should review your will if:

Accepted Answer

A)  you move to a different state. 
B)  you have sold property mentioned in the will. 
C)  the size and composition of your estate has changed. 
D)  you have married, divorced, or remarried. 
E)  you have done any of the things listed in the other answers. 
A)  you move to a different state. 
B)  you have sold property mentioned in the will. 
C)  the size and composition of your estate has changed. 
D)  you have married, divorced, or remarried. 
E)  you have done any of the things listed in the other answers.

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n) ____________ tax.

Estate planning is an integral part of financial planning.

Estate planning has two parts. The second part of estate planning consists of:

Estate planning is not an essential part of retirement planning.

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Sally Forth has a trust that she can end at any time she wants. What type of trust does Sally have?

Which document explains, adds, or deletes provisions in your existing will?

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

The cost of preparing a will varies from place to place.

Perhaps the most popular form of marital trust is the Q-TIP trust.

Which one of the following wills leaves everything to your spouse?

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million. This exemption amount passes into a trust. What type of will has Will created?

A simple will creates lower overall taxation for all individuals.

Which of the following would keep you from being an executor of a will?

Joseph Vu has assets worth $1,200,000. He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death. What is this legal document?

Which of the following is true if you are an unmarried couple?

Probate is a legal procedure of proving a valid or invalid will.

If your beneficiary is too young or unable to handle money wisely, which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

You should review your will if:

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

Exam 19: Estate Planning

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n) ____________ tax.

Estate planning is an integral part of financial planning.

Estate planning has two parts. The second part of estate planning consists of:

Estate planning is not an essential part of retirement planning.

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Sally Forth has a trust that she can end at any time she wants. What type of trust does Sally have?

Which document explains, adds, or deletes provisions in your existing will?

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

The cost of preparing a will varies from place to place.

Perhaps the most popular form of marital trust is the Q-TIP trust.

Which one of the following wills leaves everything to your spouse?

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million. This exemption amount passes into a trust. What type of will has Will created?

A simple will creates lower overall taxation for all individuals.

Which of the following would keep you from being an executor of a will?

Joseph Vu has assets worth $1,200,000. He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death. What is this legal document?

Which of the following is true if you are an unmarried couple?

Probate is a legal procedure of proving a valid or invalid will.

If your beneficiary is too young or unable to handle money wisely, which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

You should review your will if:

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