Question 1

Inflation is a common reason for estates to break up.

Accepted Answer

A) True 
 B)False

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Married | Unmarried] couples have the greater need for 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 3

A new will revokes previous wills only if a statement such as "This will revokes all previous wills" appears.

Accepted Answer

A) True 
 B)False

Question 4

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-The gift tax law allows a person to give gifts up to [$10,000 | $13,000] tax free.

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 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-When a father deposits cash in a bank account held jointly with his daughter,a gift is made with the [father's deposit | daughter's withdrawal].

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 6

A letter of last instructions could include this information.

Accepted Answer

A)  revisions to will. 
B)  establishment of trusts. 
C)  naming of guardians. 
D)  distribution of assets. 
E)  funeral and burial wishes. 
A)  revisions to will. 
B)  establishment of trusts. 
C)  naming of guardians. 
D)  distribution of assets. 
E)  funeral and burial wishes.

Question 7

Trust services are used exclusively by those who cannot handle large sums of money,such as minors.

Accepted Answer

A) True 
 B)False

Question 8

One of the aspects of disposition of property consists of

Accepted Answer

A)  distribution of residual assets after specific gifts have been made 
B)  allocating the burden of taxes among the beneficiaries 
C)  determining which county will have legal jurisdiction 
D)  naming the executors of the estate 
E)  none of the above 
A)  distribution of residual assets after specific gifts have been made 
B)  allocating the burden of taxes among the beneficiaries 
C)  determining which county will have legal jurisdiction 
D)  naming the executors of the estate 
E)  none of the above

Question 9

A trust that provides continuity and management of asset management and allows assets to bypass probate,but which provides no income or estate tax advantages is a(n)____ trust.

Accepted Answer

A)  revocable living 
B)  irrevocable living 
C)  testamentary 
D)  charitable lead 
E)  credit shelter 
A)  revocable living 
B)  irrevocable living 
C)  testamentary 
D)  charitable lead 
E)  credit shelter

Question 10

Maxine's estate is worth $600,000.It will not be subject to federal estate taxes.

Accepted Answer

A) True 
 B)False

Question 11

A trust designed to help couples gain full use out of each spouse's exclusion is the ____.

Accepted Answer

A)  Crummey 
B)  Credit shelter 
C)  Charitable lead 
D)  Special needs 
E)  Charitable remainder 
A)  Crummey 
B)  Credit shelter 
C)  Charitable lead 
D)  Special needs 
E)  Charitable remainder

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-You need to make major revisions in your will.You should write a [codicil | new will].

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 13

Dying intestate means dying with a valid will.

Accepted Answer

A) True 
 B)False

Question 14

This situation calls especially for an estate plan based on the people planning perspective.

Accepted Answer

A)  working couple with handicapped child 
B)  married man with no dependents 
C)  single person,no dependents,some property 
D)  single person,no property 
E)  mother and daughter,independent,ages 65 and 43,share housing 
A)  working couple with handicapped child 
B)  married man with no dependents 
C)  single person,no dependents,some property 
D)  single person,no property 
E)  mother and daughter,independent,ages 65 and 43,share housing

Question 15

Probate property includes only real property.

Accepted Answer

A) True 
 B)False

Question 16

Estate planning requires knowledge of wills,trusts,and investments.

Accepted Answer

A) True 
 B)False

Question 17

Requirements for a valid will do not include

Accepted Answer

A)  The testator must be of sound mind. 
B)  The testator must not be unduly influenced. 
C)  The will must be properly executed. 
D)  There must be no fraud in the execution of the will. 
E)  The will must be drawn up by an attorney. 
A)  The testator must be of sound mind. 
B)  The testator must not be unduly influenced. 
C)  The will must be properly executed. 
D)  There must be no fraud in the execution of the will. 
E)  The will must be drawn up by an attorney.

Question 18

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

Accepted Answer

A) True 
 B)False

Question 19

Your real and personal property that can be transferred according to the terms of a will is called your

Accepted Answer

A)  gross estate. 
B)  probate estate. 
C)  net estate. 
D)  estate. 
E)  proper estate. 
A)  gross estate. 
B)  probate estate. 
C)  net estate. 
D)  estate. 
E)  proper estate.

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-[Busy executives | minors | those willing to spend countless hours handling large sums of money] do not need trust services.

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.

Inflation is a common reason for estates to break up.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Married | Unmarried] couples have the greater need for estate planning.

A new will revokes previous wills only if a statement such as "This will revokes all previous wills" appears.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The gift tax law allows a person to give gifts up to [$10,000 | $13,000] tax free.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When a father deposits cash in a bank account held jointly with his daughter,a gift is made with the [father's deposit | daughter's withdrawal].

A letter of last instructions could include this information.

Trust services are used exclusively by those who cannot handle large sums of money,such as minors.

One of the aspects of disposition of property consists of

A trust that provides continuity and management of asset management and allows assets to bypass probate,but which provides no income or estate tax advantages is a(n)____ trust.

Maxine's estate is worth $600,000.It will not be subject to federal estate taxes.

A trust designed to help couples gain full use out of each spouse's exclusion is the ____.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You need to make major revisions in your will.You should write a [codicil | new will].

Dying intestate means dying with a valid will.

This situation calls especially for an estate plan based on the people planning perspective.

Probate property includes only real property.

Estate planning requires knowledge of wills,trusts,and investments.

Requirements for a valid will do not include

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

Your real and personal property that can be transferred according to the terms of a will is called your

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Busy executives | minors | those willing to spend countless hours handling large sums of money] do not need trust services.

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

Inflation is a common reason for estates to break up.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Married | Unmarried] couples have the greater need for estate planning.

A new will revokes previous wills only if a statement such as "This will revokes all previous wills" appears.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -The gift tax law allows a person to give gifts up to [$10,000 | $13,000] tax free.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -When a father deposits cash in a bank account held jointly with his daughter,a gift is made with the [father's deposit | daughter's withdrawal].

A letter of last instructions could include this information.

Trust services are used exclusively by those who cannot handle large sums of money,such as minors.

One of the aspects of disposition of property consists of

A trust that provides continuity and management of asset management and allows assets to bypass probate,but which provides no income or estate tax advantages is a(n)____ trust.

Maxine's estate is worth $600,000.It will not be subject to federal estate taxes.

A trust designed to help couples gain full use out of each spouse's exclusion is the ____.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -You need to make major revisions in your will.You should write a [codicil | new will].

Dying intestate means dying with a valid will.

This situation calls especially for an estate plan based on the people planning perspective.

Probate property includes only real property.

Estate planning requires knowledge of wills,trusts,and investments.

Requirements for a valid will do not include

A husband and wife together could give $20,000 to their niece with no gift tax liability even if the entire $20,000 came from the wife's checking account.

Your real and personal property that can be transferred according to the terms of a will is called your

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -[Busy executives | minors | those willing to spend countless hours handling large sums of money] do not need trust services.

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