Question 1

A credit-shelter trust is perhaps the most common estate-planning trust.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

If you die intestate,the state's law of descent and distribution becomes your will.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

What are some common reasons for setting up a trust?

Accepted Answer

Setting up a trust can serve a variety o

Question 9

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The adjusted gross estate is equal to the gross estate minus debts and costs.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A guardian is a person or an institution that holds property for the benefit of someone else.

Accepted Answer

A) True 
 B)False

Question 14

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 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 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 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

A(n)____________ trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) guardian 
B) trustee 
C) living 
D) power of attorney 
E) estate 
A) guardian 
B) trustee 
C) living 
D) power of attorney 
E) estate

Question 18

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.

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 meticulous attention to estate planning. 
E) Many people do little to financially prepare for death. 
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 meticulous attention to estate planning. 
E) Many people do little to financially prepare for death.

Question 20

Which will is sufficient for most smaller estates?

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

A credit-shelter trust is perhaps the most common estate-planning trust.

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

If you die intestate,the state's law of descent and distribution becomes your will.

Which one of the following statements is correct?

If you die without a valid will:

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

What are some common reasons for setting up a trust?

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

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

The adjusted gross estate is equal to the gross estate minus debts and costs.

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.

A guardian is a person or an institution that holds property for the benefit of someone else.

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

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

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

A(n)____________ trust is a property management arrangement that you establish while you are alive.

You should review your will if:

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

Which will is sufficient for most smaller estates?

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 credit-shelter trust is perhaps the most common estate-planning trust.

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

If you die intestate,the state's law of descent and distribution becomes your will.

Which one of the following statements is correct?

If you die without a valid will:

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

What are some common reasons for setting up a trust?

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

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

The adjusted gross estate is equal to the gross estate minus debts and costs.

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.

A guardian is a person or an institution that holds property for the benefit of someone else.

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

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

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

A(n)____________ trust is a property management arrangement that you establish while you are alive.

You should review your will if:

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

Which will is sufficient for most smaller estates?

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