Exam 20: Estate Planning

A revocable living trust is one that cannot be changed during a person's lifetime.

Once your net worth exceeds the tax-free limit of estate taxes,you should carefully plan your estate to minimize any potential tax liability.

A legal document specifying distribution of your assets upon death is a

A living will is a simple legal document in which individuals specify their preferences if they become mentally or physically disabled.

You are recently divorced and have relocated to another state.In order to make substantial changes to your will you should

A ________ will is suitable for larger estates because it distributes half of the estate to the spouse and the other half to any children or to a trust.

Which of the following statements about the letter of last instruction is false?

If you are married,have a small estate and no children,a(n)________ will probably serve your needs.

To create a will,a person must be of legal age,be mentally competent,and not be subject to undue influence or threats of others.

The primary purpose of a marital share will is to

The probate process includes all of the following steps except

List the following steps in order: (a)Assets are sold (b)Estate taxes are paid (c)A copy of the will is provided (d)Executor files forms in a local probate court (e)A list of assets and liabilities is prepared

A will could be written to distribute assets in terms of the following except

A married couple with four children may give gifts up to ________ each year to their children.

Since the settling of wills is straight-forward,almost anyone can do a good job as an executor of an estate.

If you die without a will,the court will appoint ________ to handle your death.

The assets less liabilities of a deceased individual are called a(n)________.

The person who establishes and funds a trust is known as the