Question 1

Use the following two columns of items to answer the matching questions below:
-probate

Accepted Answer

A) a legal request for how your estate should be distributed upon your death 
B) a document that specifies changes in an existing will 
C) dying without a will 
D) persons specified in a will to receive part of an estate 
E) a will suitable for a smaller estate distributed to the spouse
F)the legal process that declares a will valid and ensures orderly distribution of assets
G)the person designated in a will to execute instructions regarding the distribution of your assets 
A) a legal request for how your estate should be distributed upon your death 
B) a document that specifies changes in an existing will 
C) dying without a will 
D) persons specified in a will to receive part of an estate 
E) a will suitable for a smaller estate distributed to the spouse
F)the legal process that declares a will valid and ensures orderly distribution of assets
G)the person designated in a will to execute instructions regarding the distribution of your assets

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not accomplished during probate?

Accepted Answer

A)  Payment of claims against the estate 
B)  Validation of the will 
C)  Determination of legal heirs 
D)  Trading of the estate's assets among the heirs 
A)  Payment of claims against the estate 
B)  Validation of the will 
C)  Determination of legal heirs 
D)  Trading of the estate's assets among the heirs

Question 4

The tax-free portion of an estate is quite high-$5.43 million in 2015.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  prepare a new letter of last instruction. 
B)  prepare a codicil. 
C)  prepare a new will. 
D)  have your existing will notarized in the new state. 
A)  prepare a new letter of last instruction. 
B)  prepare a codicil. 
C)  prepare a new will. 
D)  have your existing will notarized in the new state.

Question 6

The only reason for having a valid will is to have your estate distributed according to your plans.

Accepted Answer

A) True 
 B)False

Question 7

If it is your desire to have Giddy Funeral Home handle the details of your viewing and burial,your will should prepare a

Accepted Answer

A)  power of executor. 
B)  codicil. 
C)  letter of last instruction. 
D)  living will. 
A)  power of executor. 
B)  codicil. 
C)  letter of last instruction. 
D)  living will.

Question 8

By using a revocable living trust,you can avoid the probate process.

Accepted Answer

A) True 
 B)False

Question 9

Estate planning decisions are affected by what five areas?

Accepted Answer

Financial planning t

Question 10

A legal document in which one person transfers assets to another who manages them for designated beneficiaries is called a

Accepted Answer

A)  testamentary device. 
B)  trust. 
C)  will. 
D)  codicil. 
A)  testamentary device. 
B)  trust. 
C)  will. 
D)  codicil.

Question 11

Name three types of trusts.

Accepted Answer

Living trust,revocable living,

Question 12

________ is the act of planning how wealth will be allocated on or before your death.

Accepted Answer

A)  Asset allocation 
B)  Estate planning 
C)  Liquidity planning 
D)  Management planning 
A)  Asset allocation 
B)  Estate planning 
C)  Liquidity planning 
D)  Management planning

Question 13

An executor,also called your ________,is named in your will to carry out your instructions regarding how your assets will be distributed.

Accepted Answer

A)  personal representative 
B)  attorney 
C)  friend 
D)  brother-in-law 
A)  personal representative 
B)  attorney 
C)  friend 
D)  brother-in-law

Question 14

Use the following two columns of items to answer the matching questions below:
-executor

Accepted Answer

A) a legal request for how your estate should be distributed upon your death 
B) a document that specifies changes in an existing will 
C) dying without a will 
D) persons specified in a will to receive part of an estate 
E) a will suitable for a smaller estate distributed to the spouse
F)the legal process that declares a will valid and ensures orderly distribution of assets
G)the person designated in a will to execute instructions regarding the distribution of your assets 
A) a legal request for how your estate should be distributed upon your death 
B) a document that specifies changes in an existing will 
C) dying without a will 
D) persons specified in a will to receive part of an estate 
E) a will suitable for a smaller estate distributed to the spouse
F)the legal process that declares a will valid and ensures orderly distribution of assets
G)the person designated in a will to execute instructions regarding the distribution of your assets

Question 15

In which of the following does the grantor no longer own the assets of the trust?

Accepted Answer

A)  Revocable living trust 
B)  Irrevocable living trust 
C)  retirement trust 
D)  Durable attorney's trust 
A)  Revocable living trust 
B)  Irrevocable living trust 
C)  retirement trust 
D)  Durable attorney's trust

Question 16

Your brother is in a serious auto accident and has become incapacitated.In order for you to be able to make decisions for his medical care,he would need to have created a

Accepted Answer

A)  living will. 
B)  health care directive. 
C)  power of attorney. 
D)  durable power of attorney for health care. 
A)  living will. 
B)  health care directive. 
C)  power of attorney. 
D)  durable power of attorney for health care.

Question 17

A person who manages assets for designated beneficiaries is called a

Accepted Answer

A)  witness. 
B)  trustee. 
C)  grantor. 
D)  executor. 
A)  witness. 
B)  trustee. 
C)  grantor. 
D)  executor.

Question 18

The purpose of probate is to ensure the

Accepted Answer

A)  orderly distribution of assets. 
B)  orderly distribution of liabilities. 
C)  distribution of expenses. 
D)  equal allocation of all financial matters. 
A)  orderly distribution of assets. 
B)  orderly distribution of liabilities. 
C)  distribution of expenses. 
D)  equal allocation of all financial matters.

Question 19

Which of the following is not true regarding the valuation of an estate for tax purposes?

Accepted Answer

A)  Assets including a home are included. 
B)  Liabilities including a home mortgage are subtracted. 
C)  Funeral and administrative expenses are subtracted. 
D)  Life insurance proceeds from policies owned by the decedent are not included. 
A)  Assets including a home are included. 
B)  Liabilities including a home mortgage are subtracted. 
C)  Funeral and administrative expenses are subtracted. 
D)  Life insurance proceeds from policies owned by the decedent are not included.

Question 20

A will's key components may include all of the following except

Accepted Answer

A)  distribution of the estate. 
B)  naming of the executor. 
C)  appointing of a guardian. 
D)  spelling out funeral arrangements. 
A)  distribution of the estate. 
B)  naming of the executor. 
C)  appointing of a guardian. 
D)  spelling out funeral arrangements.

Exam 20: Estate Planning

Use the following two columns of items to answer the matching questions below: -probate

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

Which of the following is not accomplished during probate?

The tax-free portion of an estate is quite high-$5.43 million in 2015.

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

The only reason for having a valid will is to have your estate distributed according to your plans.

If it is your desire to have Giddy Funeral Home handle the details of your viewing and burial,your will should prepare a

By using a revocable living trust,you can avoid the probate process.

Estate planning decisions are affected by what five areas?

A legal document in which one person transfers assets to another who manages them for designated beneficiaries is called a

Name three types of trusts.

________ is the act of planning how wealth will be allocated on or before your death.

An executor,also called your ________,is named in your will to carry out your instructions regarding how your assets will be distributed.

Use the following two columns of items to answer the matching questions below: -executor

In which of the following does the grantor no longer own the assets of the trust?

Your brother is in a serious auto accident and has become incapacitated.In order for you to be able to make decisions for his medical care,he would need to have created a

A person who manages assets for designated beneficiaries is called a

The purpose of probate is to ensure the

Which of the following is not true regarding the valuation of an estate for tax purposes?

A will's key components may include all of the following except

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Integrating the Components of a Financial Plan

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