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. -The top federal gift and estate tax rate for 2014 is expected to be [40 | 45] percent.

Liquidity is important in an estate to pay for death costs and possible taxes.

The living will states:

A letter of last instruction is a legal document..

When writing a will,you should seek the professional services of:

Probate property includes only real property.

In a revocable living trust,the grantor reserves the right to revoke the trust and regain trust property.

A codicil is a(n):

A trust that provides continuity and management of asset management and allows assets to bypass probate,but which provides no income or estate tax advantages is a(n)_____ trust.

You should review your estate plan every:

Which of the following is a reason for making gifts?

A will is a legal document outlining the plan for:

Your will would appoint _____ to carry out the terms of the will.

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.

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:

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.

One should make copies of one's will and store them in different places.

An estate plan would be least likely to need revision when:

The most favorable tax treatment results when you transfer your estate (after death)to your:

The law automatically modifies a will under certain circumstances,which vary from state to state but generally center on divorce,marriage,birth,or adoption.