Question 1

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is/are a typical cash need(s)of one's estate?

Accepted Answer

A) Funeral expenses 
B) Legal fees 
C) Outstanding debt 
D) Estate and inheritance taxes 
E) All of the above 
A) Funeral expenses 
B) Legal fees 
C) Outstanding debt 
D) Estate and inheritance taxes 
E) All of the above E

Question 3

Estate planning is important because it protects your family against major catastrophes and helps keep taxes to a minimum.

Accepted Answer

A) True 
 B)False  True

Question 4

A ________ gives the individual establishing the trust the ability to direct income from the trust to his or her spouse over the spouse's life,and then to whomever else the individual wants the funds to go.

Accepted Answer

A) Q-TIP trust 
B) sprinkling trust 
C) family trust 
D) living trust 
A) Q-TIP trust 
B) sprinkling trust 
C) family trust 
D) living trust

Question 5

A legal entity in which you control the assets and can receive income,but also have the option to leave or remove assets,is called a(n)

Accepted Answer

A) family trust. 
B) revocable living trust. 
C) irrevocable living trust. 
D) testamentary trust. 
A) family trust. 
B) revocable living trust. 
C) irrevocable living trust. 
D) testamentary trust.

Question 6

Outline the steps in calculating estate taxes.

Accepted Answer

1.Calculate the value of the g

Question 7

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

Accepted Answer

A) True 
 B)False

Question 8

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

Accepted Answer

A) Blood relatives 
B) Siblings 
C) Your biological children 
D) Anyone regardless to how they are related to you 
E) None of the above 
A) Blood relatives 
B) Siblings 
C) Your biological children 
D) Anyone regardless to how they are related to you 
E) None of the above

Question 9

Identify three advantages and three disadvantages of irrevocable living trusts.

Accepted Answer

Advantages of irrevocable living trusts

Question 10

The federal estate tax exemption is $5.49 million per person.Recently,lawmakers ruled that the exempted amount held by the first to die would be transferable to the surviving spouse.Therefore,a married couple can now avoid federal estate taxes with combined assets of up to $10.98 million even without good estate planning.

Accepted Answer

A) True 
 B)False

Question 11

A will is a legal document that describes how you want your property to be transferred to others.

Accepted Answer

A) True 
 B)False

Question 12

Provide a description of the basic features and clauses found in a will.What might invalidate your will?

Accepted Answer

The introductory statement identifies th

Question 13

Which of the following is a disadvantage of joint ownership?

Accepted Answer

A) Jointly owned assets avoid probate. 
B) It makes it legal for one party to "take the money and run." 
C) It discourages compromise in the case of a divorce. 
D) None of the above is a disadvantage of joint ownership. 
A) Jointly owned assets avoid probate. 
B) It makes it legal for one party to "take the money and run." 
C) It discourages compromise in the case of a divorce. 
D) None of the above is a disadvantage of joint ownership.

Question 14

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

Accepted Answer

A) True 
 B)False

Question 15

Giving assets away as a gift reduces the value of your estate and allows you to help your heirs while you're still alive.

Accepted Answer

A) True 
 B)False

Question 16

An attachment to a will that alters or amends a portion of the will is called a

Accepted Answer

A) proxy. 
B) codicil. 
C) letter of last instructions. 
D) revocation. 
E) none of the above. 
A) proxy. 
B) codicil. 
C) letter of last instructions. 
D) revocation. 
E) none of the above.

Question 17

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following does not have to be paid out of your estate before distribution to your heirs?

Accepted Answer

A) Legal fees 
B) Funeral expenses 
C) Outstanding debt 
D) Estate and inheritance taxes 
E) All of the above must be paid prior to the distribution of assets. 
A) Legal fees 
B) Funeral expenses 
C) Outstanding debt 
D) Estate and inheritance taxes 
E) All of the above must be paid prior to the distribution of assets.

Question 19

Ingrid is single with no dependents.She has been in the hospital with a coma for the last 2 weeks.Her bills are piling up and her rent on her apartment is due.Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

Accepted Answer

A) Whoever is named as her executor 
B) Whoever is named in her living will 
C) Whoever is named in her durable power of attorney 
D) Whoever is named in her durable health care power of attorney 
A) Whoever is named as her executor 
B) Whoever is named in her living will 
C) Whoever is named in her durable power of attorney 
D) Whoever is named in her durable health care power of attorney

Question 20

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

Accepted Answer

A) Legal fees and court costs must be paid. 
B) The will is validated. 
C) There are typically executor fees for settling the estate (unless the executor is a family member who chooses only to be reimbursed for expenses). 
D) Costs of probate can equal 1 to 8 percent of the value of the estate. 
E) The process may be slow,particularly if someone challenges the will. 
A) Legal fees and court costs must be paid. 
B) The will is validated. 
C) There are typically executor fees for settling the estate (unless the executor is a family member who chooses only to be reimbursed for expenses). 
D) Costs of probate can equal 1 to 8 percent of the value of the estate. 
E) The process may be slow,particularly if someone challenges the will.

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

Which of the following is/are a typical cash need(s)of one's estate?

Estate planning is important because it protects your family against major catastrophes and helps keep taxes to a minimum.

A ________ gives the individual establishing the trust the ability to direct income from the trust to his or her spouse over the spouse's life,and then to whomever else the individual wants the funds to go.

A legal entity in which you control the assets and can receive income,but also have the option to leave or remove assets,is called a(n)

Outline the steps in calculating estate taxes.

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

Identify three advantages and three disadvantages of irrevocable living trusts.

A will is a legal document that describes how you want your property to be transferred to others.

Provide a description of the basic features and clauses found in a will.What might invalidate your will?

Which of the following is a disadvantage of joint ownership?

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

Giving assets away as a gift reduces the value of your estate and allows you to help your heirs while you're still alive.

An attachment to a will that alters or amends a portion of the will is called a

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Which of the following does not have to be paid out of your estate before distribution to your heirs?

Ingrid is single with no dependents.She has been in the hospital with a coma for the last 2 weeks.Her bills are piling up and her rent on her apartment is due.Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Financial Life Eventsfitting the Pieces Together

Filters

Exam 16: Estate Planning: Saving Your Heirs Money and Headaches

The final step in estate planning is determining which estate planning techniques are most appropriate to achieve your goals.

Which of the following is/are a typical cash need(s)of one's estate?

Estate planning is important because it protects your family against major catastrophes and helps keep taxes to a minimum.

A ________ gives the individual establishing the trust the ability to direct income from the trust to his or her spouse over the spouse's life,and then to whomever else the individual wants the funds to go.

A legal entity in which you control the assets and can receive income,but also have the option to leave or remove assets,is called a(n)

Outline the steps in calculating estate taxes.

Gifts reduce the taxable value of your estate and allow you to help out your heirs while you're still alive.

The unlimited gift tax exclusion for medical or education expenses can only be gifted to which of the following?

Identify three advantages and three disadvantages of irrevocable living trusts.

A will is a legal document that describes how you want your property to be transferred to others.

Provide a description of the basic features and clauses found in a will.What might invalidate your will?

Which of the following is a disadvantage of joint ownership?

If you give $14,000 as a gift to someone who is not a blood relative,you will pay taxes on these funds and so will the recipient.

Giving assets away as a gift reduces the value of your estate and allows you to help your heirs while you're still alive.

An attachment to a will that alters or amends a portion of the will is called a

A living will allows you to state your wishes regarding medical treatment in the event of an illness or injury that renders you unable to make decisions regarding your health care.

Which of the following does not have to be paid out of your estate before distribution to your heirs?

Ingrid is single with no dependents.She has been in the hospital with a coma for the last 2 weeks.Her bills are piling up and her rent on her apartment is due.Who is legally empowered to take care of her banking and bill paying while she is incapacitated?

You know that the advantages of having a will likely outweigh the disadvantages associated with probate.Which is not a disadvantage of probate?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Financial Life Eventsfitting the Pieces Together

Filters