Question 1

The letter of last instruction is

Accepted Answer

A)  Another name for a will. 
B)  Legally binding. 
C)  Another name for a trust. 
D)  A document that identifies whether you want to be kept alive by artificial means if you become terminally ill and unable to make such a decision. 
E)  A non-legally binding document that provides information regarding your death such as funeral arrangements. 
A)  Another name for a will. 
B)  Legally binding. 
C)  Another name for a trust. 
D)  A document that identifies whether you want to be kept alive by artificial means if you become terminally ill and unable to make such a decision. 
E)  A non-legally binding document that provides information regarding your death such as funeral arrangements. E

Question 2

When you retire, you will probably spend more money on

Accepted Answer

A)  Clothing. 
B)  Transportation. 
C)  Taxes. 
D)  Health insurance. 
E)  All of these. 
A)  Clothing. 
B)  Transportation. 
C)  Taxes. 
D)  Health insurance. 
E)  All of these. D

Question 3

When you die, this tax will be based on the fair market value of your investments, property, and bank accounts less an exemption (of $5.34 million in 2014).

Accepted Answer

A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax 
A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax A

Question 4

All of the following are examples of defined contribution plans except

Accepted Answer

A)  Defined-benefit plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary-reduction plan. 
E)  Stock bonus plan. 
A)  Defined-benefit plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary-reduction plan. 
E)  Stock bonus plan.

Question 5

An estate consists of

Accepted Answer

A)  Home, vehicle, and retirement accounts only. 
B)  Furniture, home, and collections only. 
C)  Everything you own. 
D)  Everything you own except your home if you hold a mortgage on it. 
E)  None of these. 
A)  Home, vehicle, and retirement accounts only. 
B)  Furniture, home, and collections only. 
C)  Everything you own. 
D)  Everything you own except your home if you hold a mortgage on it. 
E)  None of these.

Question 6

Your will must be signed by

Accepted Answer

A)  The lawyer who prepares it. 
B)  You in front of two witnesses. 
C)  Three unbiased witnesses. 
D)  One beneficiary. 
E)  All of these. 
A)  The lawyer who prepares it. 
B)  You in front of two witnesses. 
C)  Three unbiased witnesses. 
D)  One beneficiary. 
E)  All of these.

Question 7

A stated amount will identifies the amount that will not go to your spouse.

Accepted Answer

A) True 
 B)False

Question 8

Legal fees for drafting a standard will range between $300 and $400.

Accepted Answer

A) True 
 B)False

Question 9

Jason is updating his estate planning and wants to set up a legal document that leaves half of the adjusted gross estate to his wife. He is writing a(n)

Accepted Answer

A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will. 
A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will.

Question 10

This is also known as an inter vivos trust.

Accepted Answer

A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 11

Jacob is updating his estate planning and wants to draft a legal document that leaves everything to his spouse. He is writing a(n)

Accepted Answer

A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will. 
A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will.

Question 12

Another name for a will is a letter of last instruction.

Accepted Answer

A) True 
 B)False

Question 13

An "average" older (65+) household spends most of its money on

Accepted Answer

A)  Entertainment. 
B)  Food. 
C)  Housing. 
D)  Medical care. 
E)  Transportation. 
A)  Entertainment. 
B)  Food. 
C)  Housing. 
D)  Medical care. 
E)  Transportation.

Question 14

Darlene is updating her estate planning and wants to set up a legal document that leaves $5. 34 million to her husband. She is writing a(n)

Accepted Answer

A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will. 
A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will.

Question 15

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Accepted Answer

A)  Revocable trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Revocable trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 16

Only one will may legally be written during a person's lifetime.

Accepted Answer

A) True 
 B)False

Question 17

When Paul leaves his job at Acme Bending Company, he may choose to move his 401(k) balance to a plan called a rollover IRA.

Accepted Answer

A) True 
 B)False

Question 18

This trust is established by your will and becomes effective upon your death.

Accepted Answer

A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 19

A disclaimer trust is appropriate for couples who do not yet have enough assets to need a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 20

Social Security

Accepted Answer

A)  Covers 97% of all American workers. 
B)  Offers full retirement benefits beginning at age 62. 
C)  Provides benefits only for retirees. 
D)  Provides 100% of retirement income for recipients. 
E)  Was established in 1947. 
A)  Covers 97% of all American workers. 
B)  Offers full retirement benefits beginning at age 62. 
C)  Provides benefits only for retirees. 
D)  Provides 100% of retirement income for recipients. 
E)  Was established in 1947.

The letter of last instruction is

When you retire, you will probably spend more money on

When you die, this tax will be based on the fair market value of your investments, property, and bank accounts less an exemption (of $5.34 million in 2014).

All of the following are examples of defined contribution plans except

An estate consists of

Your will must be signed by

A stated amount will identifies the amount that will not go to your spouse.

Legal fees for drafting a standard will range between $300 and $400.

Jason is updating his estate planning and wants to set up a legal document that leaves half of the adjusted gross estate to his wife. He is writing a(n)

This is also known as an inter vivos trust.

Jacob is updating his estate planning and wants to draft a legal document that leaves everything to his spouse. He is writing a(n)

Another name for a will is a letter of last instruction.

An "average" older (65+) household spends most of its money on

Darlene is updating her estate planning and wants to set up a legal document that leaves $5. 34 million to her husband. She is writing a(n)

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Only one will may legally be written during a person's lifetime.

When Paul leaves his job at Acme Bending Company, he may choose to move his 401(k) balance to a plan called a rollover IRA.

This trust is established by your will and becomes effective upon your death.

A disclaimer trust is appropriate for couples who do not yet have enough assets to need a credit-shelter trust.

Social Security

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters

Exam 14: Starting Early: Retirement and Estate Planning

The letter of last instruction is

When you retire, you will probably spend more money on

When you die, this tax will be based on the fair market value of your investments, property, and bank accounts less an exemption (of $5.34 million in 2014).

All of the following are examples of defined contribution plans except

An estate consists of

Your will must be signed by

A stated amount will identifies the amount that will not go to your spouse.

Legal fees for drafting a standard will range between $300 and $400.

Jason is updating his estate planning and wants to set up a legal document that leaves half of the adjusted gross estate to his wife. He is writing a(n)

This is also known as an inter vivos trust.

Jacob is updating his estate planning and wants to draft a legal document that leaves everything to his spouse. He is writing a(n)

Another name for a will is a letter of last instruction.

An "average" older (65+) household spends most of its money on

Darlene is updating her estate planning and wants to set up a legal document that leaves $5. 34 million to her husband. She is writing a(n)

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Only one will may legally be written during a person's lifetime.

When Paul leaves his job at Acme Bending Company, he may choose to move his 401(k) balance to a plan called a rollover IRA.

This trust is established by your will and becomes effective upon your death.

A disclaimer trust is appropriate for couples who do not yet have enough assets to need a credit-shelter trust.

Social Security

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters