Exam 15: Preserving Your 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. -You need to make major revisions in your will.You should write a [codicil | new will].

The best choice for a trustee is a family member.

One should make copies of his will and store them in different places.

Property held in different states does not complicate the estate planning process.

Trustees receive the benefits from a trust.

The gift tax exclusion applies

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. -A gift's increase in value after it was given is [included in | excluded from] the donor's estate.

Your gross estate is all property subject to federal tax at your death.

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 your

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. -Mike and Tristan,father and son,own property as tenants in common.Tristan [can | cannot] write a valid will leaving his part of this property to his friend Joe.

The intestate process is federally mandated,and is similar from state to state.

Mark owns a vacation home in Florida that he purchased in 1992 for $120,000.The vacation home now has a value of $500,000.If Mark gifts the home to Glenn,the basis to Glenn will be

A will is required by state law.

Gift giving can reduce estate tax liability.

Estate planning is designed to

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. -Property held jointly with the right of survivorship [would possibly | would not] be part of your gross estate subject to federal estate taxes.

Estate planning usually occurs during the last ten years of a person's life.

The testator of a will always receives property from the will.

All living trusts are revocable.

It is best to name an older person as the trustee.