Question 1

Why does an estate "break up"?

Accepted Answer

A) Death-related costs 
B) Inflation 
C) Improper use of vehicles of transfer 
D) Lack of liquidity 
E) All of these 
A) Death-related costs 
B) Inflation 
C) Improper use of vehicles of transfer 
D) Lack of liquidity 
E) All of these E

Question 2

If a person dies intestate (without a valid will),the estate is distributed according to established state laws of intestate succession.According to Utah's probate code (as described in Exhibit 15.4 of your textbook),what is the estate distribution for a spouse and offspring that are not of the surviving spouse?

Accepted Answer

The first $75,000 plus 50% of the balance to surviving spouse and 50% of the balance to decendent spouses offspring by right of representation

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Funds from the [minor's section 2503(c)| crummy] trust must be distributed by the time the beneficiary turns 21.

Accepted Answer

A

Question 4

If a gift is so large that taxes are due,the money used to pay the taxes is removed from the estate.

Accepted Answer

A) True 
 B)False

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The [marital exclusion | unified tax credit] can be applied against the tentative tax on estate tax base.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Proof of mental capacity lies on the person contesting a will,not on the individual writing a will.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You would create a [living | testamentary] trust to be used after you die.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

The two main areas of estate planning are asset planning and probate planning.

Accepted Answer

A) True 
 B)False

Question 9

A codicil is a simple and convenient legal means of modifying a will.

Accepted Answer

A) True 
 B)False

Question 10

The goal of estate planning is

Accepted Answer

A) to accumulate. 
B) to preserve. 
C) to distribute. 
D) all of these. 
E) none of these. 
A) to accumulate. 
B) to preserve. 
C) to distribute. 
D) all of these. 
E) none of these.

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You could give any number of people [$14,000 | $25,000] per year without having to pay any gift taxes.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

Jill and Jack are siblings.Jill wants to gift $15,000 to Jack's daughter.She and Jack can join in that gift to take advantage of gift splitting.

Accepted Answer

A) True 
 B)False

Question 13

A form of joint ownership that may exist only between husband and wife is

Accepted Answer

A) joint tenancy. 
B) joint tenancy with right of survivorship. 
C) joint tenancy without right of survivorship. 
D) tenancy in common. 
E) tenancy by the entirety. 
A) joint tenancy. 
B) joint tenancy with right of survivorship. 
C) joint tenancy without right of survivorship. 
D) tenancy in common. 
E) tenancy by the entirety.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Gathering data on all aspects of the family is an important estate planning function.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The person setting up a trust is called the [grantor | trustee].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Death will erase any debts existing at that time.

Accepted Answer

A) True 
 B)False

Question 18

Your gross estate is composed only of nonprobate property.

Accepted Answer

A) True 
 B)False

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The [irrevocable living trust | pour-over will] contains a provision passing the estate to an existing living trust.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Requirements for a valid will do not include which of the following?

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.

Why does an estate "break up"?

If a gift is so large that taxes are due,the money used to pay the taxes is removed from the estate.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [marital exclusion | unified tax credit] can be applied against the tentative tax on estate tax base.

Proof of mental capacity lies on the person contesting a will,not on the individual writing a will.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You would create a [living | testamentary] trust to be used after you die.

The two main areas of estate planning are asset planning and probate planning.

A codicil is a simple and convenient legal means of modifying a will.

The goal of estate planning is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You could give any number of people [$14,000 | $25,000] per year without having to pay any gift taxes.

Jill and Jack are siblings.Jill wants to gift $15,000 to Jack's daughter.She and Jack can join in that gift to take advantage of gift splitting.

A form of joint ownership that may exist only between husband and wife is

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

Gathering data on all aspects of the family is an important estate planning function.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The person setting up a trust is called the [grantor | trustee].

Death will erase any debts existing at that time.

Your gross estate is composed only of nonprobate property.

Requirements for a valid will do not include which of the following?

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

Why does an estate "break up"?

If a gift is so large that taxes are due,the money used to pay the taxes is removed from the estate.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [marital exclusion | unified tax credit] can be applied against the tentative tax on estate tax base.

Proof of mental capacity lies on the person contesting a will,not on the individual writing a will.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You would create a [living | testamentary] trust to be used after you die.

The two main areas of estate planning are asset planning and probate planning.

A codicil is a simple and convenient legal means of modifying a will.

The goal of estate planning is

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You could give any number of people [$14,000 | $25,000] per year without having to pay any gift taxes.

Jill and Jack are siblings.Jill wants to gift $15,000 to Jack's daughter.She and Jack can join in that gift to take advantage of gift splitting.

A form of joint ownership that may exist only between husband and wife is

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

Gathering data on all aspects of the family is an important estate planning function.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The person setting up a trust is called the [grantor | trustee].

Death will erase any debts existing at that time.

Your gross estate is composed only of nonprobate property.

Requirements for a valid will do not include which of the following?

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