Question 1

A trust that comes into existence only after the will is probated is known as a __________ trust. ​

Accepted Answer

A) testamentary 
B) living 
C) letter of instructions 
D) codicil 
A) testamentary 
B) living 
C) letter of instructions 
D) codicil A

Question 2

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

Accepted Answer

A) True 
 B)False  True

Question 3

Since 2011,a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

Accepted Answer

A) True 
 B)False  False

Question 4

The disposition of property involves:

Accepted Answer

A) the distribution of residual assets after specific gifts have been made. 
B) transferring the burden of taxes to the government. 
C) determining which county should have legal jurisdiction to revoke the will. 
D) creating a situation of intestacy. 
E) a witness signing the will on behalf of the testator to evade estate taxes. 
A) the distribution of residual assets after specific gifts have been made. 
B) transferring the burden of taxes to the government. 
C) determining which county should have legal jurisdiction to revoke the will. 
D) creating a situation of intestacy. 
E) a witness signing the will on behalf of the testator to evade estate taxes.

Question 5

A trustee is the person who writes a will.

Accepted Answer

A) True 
 B)False

Question 6

A written and legally enforceable document expressing how a person's property should be distributed upon his or her death is known as a(n)_____.

Accepted Answer

A) will 
B) ethical paper 
C) memoradnum 
D) letter of last instructions 
E) power of attorney 
A) will 
B) ethical paper 
C) memoradnum 
D) letter of last instructions 
E) power of attorney

Question 7

A "grantor" is also called the:

Accepted Answer

A) heir. 
B) beneficiary. 
C) joint owner. 
D) settlor. 
E) attorney. 
A) heir. 
B) beneficiary. 
C) joint owner. 
D) settlor. 
E) attorney.

Question 8

The unified rate schedule applies to federal _____ taxes.

Accepted Answer

A) sales and gift 
B) gift and service 
C) gift and estate 
D) infrastructure and estate 
E) estate and professional 
A) sales and gift 
B) gift and service 
C) gift and estate 
D) infrastructure and estate 
E) estate and professional

Question 9

If the amount of stock in the gross estate represents a substantial holding in a company,then the value subject to the tax will be reduced by the __________. ​

Accepted Answer

A) marketability discount 
B) minority discount 
C) blockage discount 
D) property discount 
A) marketability discount 
B) minority discount 
C) blockage discount 
D) property discount

Question 10

A document that legally modifies a will without revoking it is called a(n)_____.

Accepted Answer

A) codicil 
B) letter of last instructions 
C) living will 
D) ethical will 
E) memorandum 
A) codicil 
B) letter of last instructions 
C) living will 
D) ethical will 
E) memorandum

Question 11

The person setting up a trust is called the __________. ​

Accepted Answer

A) grantor 
B) trustee 
C) attorney 
D) beneficiary 
A) grantor 
B) trustee 
C) attorney 
D) beneficiary

Question 12

Which of the following best describes a situation of intestacy?

Accepted Answer

A) Having insufficient medical insurance during a period of illness 
B) Dying without heirs 
C) Being physically challenged 
D) Dying without a valid will 
E) Dying without any probate property 
A) Having insufficient medical insurance during a period of illness 
B) Dying without heirs 
C) Being physically challenged 
D) Dying without a valid will 
E) Dying without any probate property

Question 13

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

Accepted Answer

A) True 
 B)False

Question 14

Your gross estate is reduced by the _____ to determine the adjusted gross estate.

Accepted Answer

A) state death tax credit 
B) orphan's deduction 
C) marital deduction 
D) funeral and administrative expenses 
E) previous year's income tax 
A) state death tax credit 
B) orphan's deduction 
C) marital deduction 
D) funeral and administrative expenses 
E) previous year's income tax

Question 15

The applicable exclusion amount from estate tax for 2015 was:

Accepted Answer

A) $500,000. 
B) $1,000,000. 
C) $2,000,000. 
D) $3,500,000. 
E) $5,430,000. 
A) $500,000. 
B) $1,000,000. 
C) $2,000,000. 
D) $3,500,000. 
E) $5,430,000.

Question 16

When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________. ​

Accepted Answer

A) portability 
B) gift splitting 
C) marital deduction 
D) the unified tax liability 
A) portability 
B) gift splitting 
C) marital deduction 
D) the unified tax liability

Question 17

The gross estate includes all property subject to federal estate taxes at a person's death.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of giving gifts?

Accepted Answer

A) To avoid depreciation in value. 
B) Gift tax exclusion attracts more estate tax. 
C) Marital deduction allows gifts to be tax free. 
D) Annual inclusion amount increases with gifts. 
E) There is no tax exemption for charitable contributions. 
A) To avoid depreciation in value. 
B) Gift tax exclusion attracts more estate tax. 
C) Marital deduction allows gifts to be tax free. 
D) Annual inclusion amount increases with gifts. 
E) There is no tax exemption for charitable contributions.

Question 19

Insufficient capital can cause problems in the payment of estate taxes.

Accepted Answer

A) True 
 B)False

Question 20

_____ has no right of survivorship.

Accepted Answer

A) A co-owner tenancy 
B) A joint tenancy 
C) A tenancy in common 
D) A settlor tenancy 
E) A tenancy by the entirety 
A) A co-owner tenancy 
B) A joint tenancy 
C) A tenancy in common 
D) A settlor tenancy 
E) A tenancy by the entirety

A trust that comes into existence only after the will is probated is known as a __________ trust.

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

Since 2011,a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

The disposition of property involves:

A trustee is the person who writes a will.

A written and legally enforceable document expressing how a person's property should be distributed upon his or her death is known as a(n)_____.

A "grantor" is also called the:

The unified rate schedule applies to federal _____ taxes.

If the amount of stock in the gross estate represents a substantial holding in a company,then the value subject to the tax will be reduced by the __________.

A document that legally modifies a will without revoking it is called a(n)_____.

The person setting up a trust is called the __________.

Which of the following best describes a situation of intestacy?

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

Your gross estate is reduced by the _____ to determine the adjusted gross estate.

The applicable exclusion amount from estate tax for 2015 was:

When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________.

The gross estate includes all property subject to federal estate taxes at a person's death.

Which of the following is an advantage of giving gifts?

Insufficient capital can cause problems in the payment of estate taxes.

_____ has no right of survivorship.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Filters

Exam 15: Preserving Your Estate

A trust that comes into existence only after the will is probated is known as a __________ trust. ​

The insurance policy transferred to a life insurance trust will reduce the transfer taxes.

Since 2011,a surviving spouse cannot use the unused unified transfer tax (UTT)credit of the deceased spouse.

The disposition of property involves:

A trustee is the person who writes a will.

A written and legally enforceable document expressing how a person's property should be distributed upon his or her death is known as a(n)_____.

A "grantor" is also called the:

The unified rate schedule applies to federal _____ taxes.

If the amount of stock in the gross estate represents a substantial holding in a company,then the value subject to the tax will be reduced by the __________. ​

A document that legally modifies a will without revoking it is called a(n)_____.

The person setting up a trust is called the __________. ​

Which of the following best describes a situation of intestacy?

The primary purpose of life insurance is to replace lost income upon the death of the insured or to provide cash to pay a transfer tax at death and for other end of life expenses.

Your gross estate is reduced by the _____ to determine the adjusted gross estate.

The applicable exclusion amount from estate tax for 2015 was:

When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________. ​

The gross estate includes all property subject to federal estate taxes at a person's death.

Which of the following is an advantage of giving gifts?

Insufficient capital can cause problems in the payment of estate taxes.

_____ has no right of survivorship.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Filters

A trust that comes into existence only after the will is probated is known as a __________ trust.

If the amount of stock in the gross estate represents a substantial holding in a company,then the value subject to the tax will be reduced by the __________.

The person setting up a trust is called the __________.

When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________.