Exam 15: Preserving Your Estate

A codicil is a legal method of modifying a will.

Gift giving can reduce estate tax liability.

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. -Most estates break-up because the deceased had [an improper estate plan | no estate plan].

The unified rate schedule applies to federal _____ taxes.

_____ would represent a second level death-related cost.

The gross estate includes all the property subject to federal estate tax at a person's death.

Life insurance comprises a large portion of most individuals' probate estates.

The decedent's personal representative is called a(n):

Death will erase any debts existing at that time.

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 [gross | probate] estate consists of your real and personal property that will be transferred at 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. -Assets held in a trust created during a person's lifetime [will | will not] go through the probate process after the death of the guarantor.

Your gross estate is composed only of nonprobate property.

Intestacy results from dying without a valid 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. -Walter left nothing to his wife in his will.His wife [is out of luck | can get the amount that the state intestacy laws would have given her].

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.

Writing a valid will does not require:

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 person making a will is called the [decedent | testator].

A tenancy by the entirety consists of:

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 want to create a living trust that provides tax advantages,you will need to establish [a revocable | an irrevocable] 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. -An appropriate trust to set up with a disabled child being the beneficiary would be the [Special Needs | Minor's Section 2503(c)] trust.