Question 1

An ethical will is a way to pass on your values and beliefs to your heirs.

Accepted Answer

A) True 
 B)False

Question 2

A letter of last instruction can provide your heirs with important information.

Accepted Answer

A) True 
 B)False

Question 3

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often include which of the following?

Accepted Answer

A) Living will 
B) Health care proxy 
C) Letter of last instruction 
D) Advance directives include all of these provisions. 
E) Durable power of attorney 
A) Living will 
B) Health care proxy 
C) Letter of last instruction 
D) Advance directives include all of these provisions. 
E) Durable power of attorney

Question 4

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

Question 5

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Accepted Answer

A) Executor 
B) Trustee 
C) Guardian 
D) Beneficiary 
E) Agent 
A) Executor 
B) Trustee 
C) Guardian 
D) Beneficiary 
E) Agent

Question 6

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Accepted Answer

A) True 
 B)False

Question 7

Matthew Miller has created a will and left everything to his wife Kate.What type of will has he 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 8

A formal will may be either typed or on a preprinted form.

Accepted Answer

A) True 
 B)False

Question 9

When death occurs,proof of claims must be produced or the claims will not be processed.

Accepted Answer

A) True 
 B)False

Question 10

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

Accepted Answer

A) True 
 B)False

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, while you are alive, 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, while you are alive, 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

Which of the following would be a benefit of establishing a trust?

Accepted Answer

A) It can reduce or provide payment for estate taxes. 
B) It can allow you to avoid probate and transfer assets immediately to beneficiaries. 
C) It can free you from managing your assets, while providing you a regular income. 
D) It can ensure that your property serves a desired purpose after you die. 
E) A trust can do all of these things. 
A) It can reduce or provide payment for estate taxes. 
B) It can allow you to avoid probate and transfer assets immediately to beneficiaries. 
C) It can free you from managing your assets, while providing you a regular income. 
D) It can ensure that your property serves a desired purpose after you die. 
E) A trust can do all of these things.

Question 13

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 14

Which statement is not true about a formal will?

Accepted Answer

A) It is usually prepared without an attorney's assistance. 
B) It may be typed. 
C) It may be on a preprinted form. 
D) You must sign it in the presence of two witnesses. 
E) It must also be signed by the witnesses in your presence. 
A) It is usually prepared without an attorney's assistance. 
B) It may be typed. 
C) It may be on a preprinted form. 
D) You must sign it in the presence of two witnesses. 
E) It must also be signed by the witnesses in your presence.

Question 15

A legal document authorizing someone to act on your behalf is called a:

Accepted Answer

A) codicil. 
B) rider. 
C) durable power of attorney. 
D) trustor. 
E) proxy. 
A) codicil. 
B) rider. 
C) durable power of attorney. 
D) trustor. 
E) proxy.

Question 16

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 17

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following statements is correct?

Accepted Answer

A) Estate planning usually involves a will and trust agreements. 
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 usually involves a will and trust agreements. 
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

Which one of the following statements is true about estate planning?

Accepted Answer

A) Estate planning is only for the rich. 
B) It is always easy to plan for your family's financial security in the event of your death. 
C) Most people provide a lifetime of income for those who will survive them. 
D) Most people give a tremendous amount of attention to estate planning. 
E) Many people do little to provide for those who will survive them. 
A) Estate planning is only for the rich. 
B) It is always easy to plan for your family's financial security in the event of your death. 
C) Most people provide a lifetime of income for those who will survive them. 
D) Most people give a tremendous amount of attention to estate planning. 
E) Many people do little to provide for those who will survive them.

Question 20

A 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 ____________ 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

An ethical will is a way to pass on your values and beliefs to your heirs.

A letter of last instruction can provide your heirs with important information.

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often include which of the following?

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?

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Matthew Miller has created a will and left everything to his wife Kate.What type of will has he created?

A formal will may be either typed or on a preprinted form.

When death occurs,proof of claims must be produced or the claims will not be processed.

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

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

Which of the following would be a benefit of establishing a trust?

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

Which statement is not true about a formal will?

A legal document authorizing someone to act on your behalf is called a:

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Which one of the following statements is correct?

Which one of the following statements is true about estate planning?

A 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 ____________ tax.

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

An ethical will is a way to pass on your values and beliefs to your heirs.

A letter of last instruction can provide your heirs with important information.

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often include which of the following?

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?

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Matthew Miller has created a will and left everything to his wife Kate.What type of will has he created?

A formal will may be either typed or on a preprinted form.

When death occurs,proof of claims must be produced or the claims will not be processed.

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

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

Which of the following would be a benefit of establishing a trust?

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

Which statement is not true about a formal will?

A legal document authorizing someone to act on your behalf is called a:

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Which one of the following statements is correct?

Which one of the following statements is true about estate planning?

A 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 ____________ tax.

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

Filters