Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Your estate is more likely to be subject to [state | federal] death taxes.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. B

Question 2

A potential estate planning problem is improper distribution of assets.

Accepted Answer

A) True 
 B)False  True

Question 3

Gift tax liability could be incurred on this transaction:

Accepted Answer

A)  providing rent-free apartment for mother 
B)  1,000 hours of babysitting for grandchild 
C)  son's deposit into husband-wife joint checking account 
D)  setting up a revocable trust 
E)  $35,000 given to son 
A)  providing rent-free apartment for mother 
B)  1,000 hours of babysitting for grandchild 
C)  son's deposit into husband-wife joint checking account 
D)  setting up a revocable trust 
E)  $35,000 given to son E

Question 4

Liquidity is important in an estate to pay for death costs and possible taxes.

Accepted Answer

A) True 
 B)False

Question 5

Funeral expenses are examples of second-level death-related costs.

Accepted Answer

A) True 
 B)False

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-If you consider wealth only,anyone with an estate expected to exceed [$500,000 | $1,000,000] in 2012 must consider estate planning.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 7

The appointment clause affirms that the will in question was really made out by the deceased.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You could give any number of people [$13,000 | $25,000] per year without having to pay any gift taxes.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 9

Updating an estate plan is a critical part of the estate planning process.

Accepted Answer

A) True 
 B)False

Question 10

Custodial accounts are used to protect the property of minor children.

Accepted Answer

A) True 
 B)False

Question 11

People planning means providing sustenance and resources for family members.

Accepted Answer

A) True 
 B)False

Question 12

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

Accepted Answer

A)  grandchildren. 
B)  children. 
C)  spouse. 
D)  father. 
E)  spouse and children. 
A)  grandchildren. 
B)  children. 
C)  spouse. 
D)  father. 
E)  spouse and children.

Question 13

A joint tenancy with right of survivorship may consist of

Accepted Answer

A)  a parent and child. 
B)  a husband and wife. 
C)  a brother and sister. 
D)  none of these. 
E)  any of these. 
A)  a parent and child. 
B)  a husband and wife. 
C)  a brother and sister. 
D)  none of these. 
E)  any of these.

Question 14

The unlimited marital deduction requires the filing of a separate tax return.

Accepted Answer

A) True 
 B)False

Question 15

When you die intestate,you have given the court or state the privilege of determining

Accepted Answer

A)  tax deadlines. 
B)  burial arrangements. 
C)  guardians of dependents. 
D)  beneficiary needs. 
E)  divisions of estate to charities. 
A)  tax deadlines. 
B)  burial arrangements. 
C)  guardians of dependents. 
D)  beneficiary needs. 
E)  divisions of estate to charities.

Question 16

A will is a legal document outlining the plan for

Accepted Answer

A)  your funeral. 
B)  disposition of your assets. 
C)  payment of taxes. 
D)  management of your assets. 
E)  survivors goals. 
A)  your funeral. 
B)  disposition of your assets. 
C)  payment of taxes. 
D)  management of your assets. 
E)  survivors goals.

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The unlimited marital deduction is available only if the recipient spouse is a [U.S.citizen and files a gift tax return | legal resident and does not have to file a gift tax return].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-For 2012,your net estate value must exceed [$1,650,000 | $3,500,000] before any federal estate taxes will be due.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

Insufficient capital can cause problems paying estate taxes.

Accepted Answer

A) True 
 B)False

Question 20

When a father deposits cash in a bank account held jointly with his daughter,a gift is made when the daughter withdraws it.

Accepted Answer

A) True 
 B)False

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Your estate is more likely to be subject to [state | federal] death taxes.

A potential estate planning problem is improper distribution of assets.

Gift tax liability could be incurred on this transaction:

Liquidity is important in an estate to pay for death costs and possible taxes.

Funeral expenses are examples of second-level death-related costs.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you consider wealth only,anyone with an estate expected to exceed [$500,000 | $1,000,000] in 2012 must consider estate planning.

The appointment clause affirms that the will in question was really made out by the deceased.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You could give any number of people [$13,000 | $25,000] per year without having to pay any gift taxes.

Updating an estate plan is a critical part of the estate planning process.

Custodial accounts are used to protect the property of minor children.

People planning means providing sustenance and resources for family members.

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

A joint tenancy with right of survivorship may consist of

The unlimited marital deduction requires the filing of a separate tax return.

When you die intestate,you have given the court or state the privilege of determining

A will is a legal document outlining the plan for

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The unlimited marital deduction is available only if the recipient spouse is a [U.S.citizen and files a gift tax return | legal resident and does not have to file a gift tax return].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -For 2012,your net estate value must exceed [$1,650,000 | $3,500,000] before any federal estate taxes will be due.

Insufficient capital can cause problems paying estate taxes.

When a father deposits cash in a bank account held jointly with his daughter,a gift is made when the daughter withdraws it.

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

Planning for Retirement

Filters

Exam 15: Preserving Your Estate

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Your estate is more likely to be subject to [state | federal] death taxes.

A potential estate planning problem is improper distribution of assets.

Gift tax liability could be incurred on this transaction:

Liquidity is important in an estate to pay for death costs and possible taxes.

Funeral expenses are examples of second-level death-related costs.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -If you consider wealth only,anyone with an estate expected to exceed [$500,000 | $1,000,000] in 2012 must consider estate planning.

The appointment clause affirms that the will in question was really made out by the deceased.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You could give any number of people [$13,000 | $25,000] per year without having to pay any gift taxes.

Updating an estate plan is a critical part of the estate planning process.

Custodial accounts are used to protect the property of minor children.

People planning means providing sustenance and resources for family members.

You have a spouse,two children,one grandchild,and a living father.If you died without a valid will,the person(s)most likely to receive the proceeds of your estate would be

A joint tenancy with right of survivorship may consist of

The unlimited marital deduction requires the filing of a separate tax return.

When you die intestate,you have given the court or state the privilege of determining

A will is a legal document outlining the plan for

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The unlimited marital deduction is available only if the recipient spouse is a [U.S.citizen and files a gift tax return | legal resident and does not have to file a gift tax return].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -For 2012,your net estate value must exceed [$1,650,000 | $3,500,000] before any federal estate taxes will be due.

Insufficient capital can cause problems paying estate taxes.

When a father deposits cash in a bank account held jointly with his daughter,a gift is made when the daughter withdraws it.

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

Planning for Retirement

Filters