Question 1

Only the wealthy need an attorney to prepare their wills.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are requirements of a valid will?

Accepted Answer

A)  Mental capacity 
B)  Freedom of choice 
C)  Proper execution 
D)  All of the above 
E)  None of the above 
A)  Mental capacity 
B)  Freedom of choice 
C)  Proper execution 
D)  All of the above 
E)  None of the above

Question 3

_____ would be a first-level death-related cost.

Accepted Answer

A)  Funeral expenses 
B)  Federal estate taxes 
C)  Probate expenses 
D)  Inheritance taxes 
E)  Administrative costs 
A)  Funeral expenses 
B)  Federal estate taxes 
C)  Probate expenses 
D)  Inheritance taxes 
E)  Administrative costs

Question 4

The gift tax exclusion applies:

Accepted Answer

A)  per recipient annually. 
B)  per donor annually. 
C)  per recipient per lifetime. 
D)  per donor per lifetime. 
E)  to all spouses' gifts to each other. 
A)  per recipient annually. 
B)  per donor annually. 
C)  per recipient per lifetime. 
D)  per donor per lifetime. 
E)  to all spouses' gifts to each other.

Question 5

A valid will cannot be contested.

Accepted Answer

A) True 
 B)False

Question 6

When selecting a trustee,you should consider their:

Accepted Answer

A)  investment and trust management skills. 
B)  business knowledge and judgment. 
C)  relationship of the person to the family. 
D)  a and b 
E)  b and c 
A)  investment and trust management skills. 
B)  business knowledge and judgment. 
C)  relationship of the person to the family. 
D)  a and b 
E)  b and c

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

Accepted Answer

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

Question 8

A durable power of attorney for health care allows loved ones to terminate life support.

Accepted Answer

A) True 
 B)False

Question 9

Charitable contributions given during life provide an income tax deduction and remove property from the estate.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following leads to an estate breaking up?

Accepted Answer

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

Question 11

An estate plan is good only as long as it fits the needs,desires,and circumstances of the parties involved.

Accepted Answer

A) True 
 B)False

Question 12

Using a trust can help shield an estate from using improper vehicles of transfer.

Accepted Answer

A) True 
 B)False

Question 13

The top federal gift and estate tax rate for 2014 is expected to be around 40 percent.

Accepted Answer

A) True 
 B)False

Question 14

In the absence of a valid will,the heir most generally favored would be the:

Accepted Answer

A)  spouse. 
B)  children. 
C)  parents. 
D)  grandchildren. 
E)  all of these are treated as equals. 
A)  spouse. 
B)  children. 
C)  parents. 
D)  grandchildren. 
E)  all of these are treated as equals.

Question 15

The person who makes a will is called the:

Accepted Answer

A)  testator. 
B)  attorney. 
C)  probater. 
D)  estate planner. 
E)  grantor. 
A)  testator. 
B)  attorney. 
C)  probater. 
D)  estate planner. 
E)  grantor.

Question 16

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 17

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.

Accepted Answer

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

Question 18

A testator can revoke a will in the following ways:

Accepted Answer

A)  making a later will that will revoke prior wills. 
B)  making a codicil that revokes prior wills. 
C)  burning the will. 
D)  making a later will that is inconsistent with a former will. 
E)  all of the above 
A)  making a later will that will revoke prior wills. 
B)  making a codicil that revokes prior wills. 
C)  burning the will. 
D)  making a later will that is inconsistent with a former will. 
E)  all of the above

Question 19

The taxable estate is less than the adjusted gross estate.

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

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

Only the wealthy need an attorney to prepare their wills.

Which of the following are requirements of a valid will?

_____ would be a first-level death-related cost.

The gift tax exclusion applies:

A valid will cannot be contested.

When selecting a trustee,you should consider their:

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 to make your will | write your will yourself].

A durable power of attorney for health care allows loved ones to terminate life support.

Charitable contributions given during life provide an income tax deduction and remove property from the estate.

Which of the following leads to an estate breaking up?

An estate plan is good only as long as it fits the needs,desires,and circumstances of the parties involved.

Using a trust can help shield an estate from using improper vehicles of transfer.

The top federal gift and estate tax rate for 2014 is expected to be around 40 percent.

In the absence of a valid will,the heir most generally favored would be the:

The person who makes a will is called the:

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

A testator can revoke a will in the following ways:

The taxable estate is less than the adjusted gross 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 gift tax law allows a person to give gifts up to [$10,000 | $14,000] tax free.

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

Only the wealthy need an attorney to prepare their wills.

Which of the following are requirements of a valid will?

_____ would be a first-level death-related cost.

The gift tax exclusion applies:

A valid will cannot be contested.

When selecting a trustee,you should consider their:

A durable power of attorney for health care allows loved ones to terminate life support.

Charitable contributions given during life provide an income tax deduction and remove property from the estate.

Which of the following leads to an estate breaking up?

An estate plan is good only as long as it fits the needs,desires,and circumstances of the parties involved.

Using a trust can help shield an estate from using improper vehicles of transfer.

The top federal gift and estate tax rate for 2014 is expected to be around 40 percent.

In the absence of a valid will,the heir most generally favored would be the:

The person who makes a will is called the:

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

A testator can revoke a will in the following ways:

The taxable estate is less than the adjusted gross 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 gift tax law allows a person to give gifts up to [$10,000 | $14,000] tax free.

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