Exam 15: Preserving Your Estate

The recipient of the gift will pay any gift tax that is due.

In most states,divorce creates an automatic revocation or modification of a will.

A codicil is a(n)

If there is no will,a judge will decide who gets your children.

Which of the following qualities is essential in a trustee?

Updating an estate plan is a critical part of the estate planning process.

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 letter of last instruction [is | is not] a legally enforceable document.

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. -If you have a small estate,you should [contact an attorney | write your will yourself].

The federal estate tax must be paid within six months of the decedent's death.

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. -When Jessica gets a divorce,her will leaving everything to her former husband usually will be [nullified | still valid] in most states.

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. -With a revocable living trust,the value of the assets placed into the trust [do | do not] become public knowledge.

The majority of Americans have valid wills.

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. -Your estate is more likely to be subject to [state | federal] death taxes.

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. -Through a [living will | durable power of attorney for health care] you authorize an individual to make health care decisions for you if you are unable to do so.

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 gift tax law allows a person to give gifts up to [$10,000 | $14,000] tax free.

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 a minor revision in your will.You should write a [codicil | new will].

The annual exclusion amount from estate tax was set at _____ for 2015.

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. -If you die with no valid will in existence,you have died [intestate | testate].

The probate 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. -A beneficiary of a will [should | should not] serve as a witness to the will.