Question 1

Insufficient capital can cause problems paying estate taxes.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Inflation is a common reason for estates to break up.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

A power of attorney allows an individual to write a will.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Jane and Arthur Patrikson are happy at their daughter graduating from high school.They gift their daughter $28,000,with $18,000 being paid out of Mr.Patrikson's account and the remaining from Mrs.Patrikson's account.What will be the gift tax payable by the Patrikson's on account of the above transaction?

Accepted Answer

A)  $2,800 
B)  $1,800 
C)  $1,000 
D)  $400 
E)  $0 
A)  $2,800 
B)  $1,800 
C)  $1,000 
D)  $400 
E)  $0

Question 8

Your real and personal property that can be transferred according to the terms of a will is called your:

Accepted Answer

A)  gross estate. 
B)  probate estate. 
C)  net estate. 
D)  estate. 
E)  proper estate. 
A)  gross estate. 
B)  probate estate. 
C)  net estate. 
D)  estate. 
E)  proper estate.

Question 9

A will is used to:

Accepted Answer

A)  name a personal representative to guide the distribution of the estate. 
B)  name a guardian for persons and property. 
C)  specify the distribution of tax burdens to beneficiaries. 
D)  all of the above 
E)  none of the above 
A)  name a personal representative to guide the distribution of the estate. 
B)  name a guardian for persons and property. 
C)  specify the distribution of tax burdens to beneficiaries. 
D)  all of the above 
E)  none of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The probate estate:

Accepted Answer

A)  consists of real property. 
B)  consists of personal property. 
C)  is regulated by intestate laws if you have no valid will. 
D)  all of the above 
E)  none of the above 
A)  consists of real property. 
B)  consists of personal property. 
C)  is regulated by intestate laws if you have no valid will. 
D)  all of the above 
E)  none of the above

Question 12

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.
-Claudia had not yet signed her newly written will when she died.Her new will [would | would not] be valid.

Accepted Answer

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

Question 13

A trust designed to help couples gain full use out of each spouse's exclusion is the _____ trust.

Accepted Answer

A)  Crummey 
B)  Credit shelter 
C)  Charitable lead 
D)  Special needs 
E)  Charitable remainder 
A)  Crummey 
B)  Credit shelter 
C)  Charitable lead 
D)  Special needs 
E)  Charitable remainder

Question 14

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].

Accepted Answer

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

Question 15

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following can be included in a letter of last instructions?

Accepted Answer

A)  Revisions to will. 
B)  Establishment of trusts. 
C)  Naming of guardians. 
D)  Distribution of assets. 
E)  Funeral and burial wishes. 
A)  Revisions to will. 
B)  Establishment of trusts. 
C)  Naming of guardians. 
D)  Distribution of assets. 
E)  Funeral and burial wishes.

Question 18

Most states require witnesses to sign in the presence of one another after they witness the signing by the testator.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Mental capacity requires an individual to be at least 21 years of age.

Accepted Answer

A) True 
 B)False

Insufficient capital can cause problems paying estate taxes.

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

Inflation is a common reason for estates to break up.

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

A power of attorney allows an individual to write a will.

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

Your real and personal property that can be transferred according to the terms of a will is called your:

A will is used to:

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

The probate estate:

A trust designed to help couples gain full use out of each spouse's exclusion is the _____ trust.

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].

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

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

Which of the following can be included in a letter of last instructions?

Most states require witnesses to sign in the presence of one another after they witness the signing by the testator.

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

Mental capacity requires an individual to be at least 21 years of age.

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

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Exam 15: Preserving Your Estate

Insufficient capital can cause problems paying estate taxes.

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

Inflation is a common reason for estates to break up.

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

A power of attorney allows an individual to write a will.

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

Your real and personal property that can be transferred according to the terms of a will is called your:

A will is used to:

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

The probate estate:

A trust designed to help couples gain full use out of each spouse's exclusion is the _____ trust.

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].

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 a gift tax has to be paid,the [giver | recipient] of the gift will pay it.

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

Which of the following can be included in a letter of last instructions?

Most states require witnesses to sign in the presence of one another after they witness the signing by the testator.

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

Mental capacity requires an individual to be at least 21 years of age.

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