Question 1

Which statement is not true about an ethical will?

Accepted Answer

A) It is used to pass on your values and beliefs to your heirs. 
B) It is a legally binding document. 
C) It dispenses emotional and spiritual wealth. 
D) It requires earnest self-examination. 
E) It is a way to express love and pass on lessons learned. 
A) It is used to pass on your values and beliefs to your heirs. 
B) It is a legally binding document. 
C) It dispenses emotional and spiritual wealth. 
D) It requires earnest self-examination. 
E) It is a way to express love and pass on lessons learned.

Question 2

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 3

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Accepted Answer

A) letter of last instruction. 
B) codicil. 
C) prenuptial agreement. 
D) marital agreement. 
E) marital share will. 
A) letter of last instruction. 
B) codicil. 
C) prenuptial agreement. 
D) marital agreement. 
E) marital share will.

Question 4

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

Accepted Answer

A) True 
 B)False

Question 5

The American Taxpayer Relief Act of 2012 provides a permanent gift and estate tax exemption of how much for individuals?

Accepted Answer

A) $2.0 million 
B) $4.5 million 
C) $5.45 million 
D) $6.75 million 
E) $8.0 million 
A) $2.0 million 
B) $4.5 million 
C) $5.45 million 
D) $6.75 million 
E) $8.0 million

Question 6

Which document identifies the will being amended,confirms the unchanged sections of the will,and changes a provision(s)in the will?

Accepted Answer

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

Question 7

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

Accepted Answer

A) Grantor retained annuity trust 
B) Life insurance trust 
C) Marital-deduction trust 
D) Self-declaration trust 
E) Charitable lead trust 
A) Grantor retained annuity trust 
B) Life insurance trust 
C) Marital-deduction trust 
D) Self-declaration trust 
E) Charitable lead trust

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

Which of the following are rules to remember when writing a will?

Accepted Answer

A) In most states, you must be 18 years of age or older. 
B) A will must be written in sound judgment and mental capacity to be valid. 
C) The document must clearly state that it is your will. 
D) The will must name an executor. 
E) All of these are rules to remember. 
A) In most states, you must be 18 years of age or older. 
B) A will must be written in sound judgment and mental capacity to be valid. 
C) The document must clearly state that it is your will. 
D) The will must name an executor. 
E) All of these are rules to remember.

Question 10

A statutory will is one type of formal will.

Accepted Answer

A) True 
 B)False

Question 11

A unique feature of a self-declaration trust is that the creator of the trust is also the trustee.

Accepted Answer

A) True 
 B)False

Question 12

If you die without a valid will:

Accepted Answer

A) the IRS confiscates your property. 
B) a federal court decides how your property will be distributed. 
C) your closest relative will receive all your property according to federal law. 
D) your letter of instruction becomes your will. 
E) your state's law of descent and distribution becomes your will. 
A) the IRS confiscates your property. 
B) a federal court decides how your property will be distributed. 
C) your closest relative will receive all your property according to federal law. 
D) your letter of instruction becomes your will. 
E) your state's law of descent and distribution becomes your will.

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A will is a legal declaration of a perso

Question 16

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 17

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 18

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 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 19

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 ____________ 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

A beneficiary is a person who has been named to receive property under the will.

Accepted Answer

A) True 
 B)False

Which statement is not true about an ethical 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 documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

The American Taxpayer Relief Act of 2012 provides a permanent gift and estate tax exemption of how much for individuals?

Which document identifies the will being amended,confirms the unchanged sections of the will,and changes a provision(s)in the will?

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

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

Which of the following are rules to remember when writing a will?

A statutory will is one type of formal will.

A unique feature of a self-declaration trust is that the creator of the trust is also the trustee.

If you die without a valid will:

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

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

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

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

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 likely made?

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 ____________ tax.

A beneficiary is a person who has been named to receive property under the will.

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 Stock

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

Which statement is not true about an ethical 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 documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

The American Taxpayer Relief Act of 2012 provides a permanent gift and estate tax exemption of how much for individuals?

Which document identifies the will being amended,confirms the unchanged sections of the will,and changes a provision(s)in the will?

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

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

Which of the following are rules to remember when writing a will?

A statutory will is one type of formal will.

A unique feature of a self-declaration trust is that the creator of the trust is also the trustee.

If you die without a valid will:

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

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

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

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

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 likely made?

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 ____________ tax.

A beneficiary is a person who has been named to receive property under the will.

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

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