Question 1

Make a list of ways to avoid probate.

Accepted Answer

1.Establish joint ow

Question 2

What methods exist to avoid probate,or to establish non-probate property?

Accepted Answer

A) Gifts 
B) Trusts 
C) Contracts like life insurance and retirement plans 
D) Joint ownership 
E) All of the above 
A) Gifts 
B) Trusts 
C) Contracts like life insurance and retirement plans 
D) Joint ownership 
E) All of the above

Question 3

You were almost killed in a recent mountain bike accident and have decided to write a will.You also plan to construct a(n)________,which will give information and directions with respect to the execution of your will.

Accepted Answer

A) codicil 
B) letter of last instructions 
C) living trust 
D) appointment clause 
E) attestation and witness clause 
A) codicil 
B) letter of last instructions 
C) living trust 
D) appointment clause 
E) attestation and witness clause

Question 4

Under joint tenancy with the right of survivorship,two or more individuals share ownership of the assets;when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

Accepted Answer

A) True 
 B)False

Question 5

The unified tax credit effectively nullifies the taxes on the first $5.49 million of one's estate.

Accepted Answer

A) True 
 B)False

Question 6

The difference between a testamentary trust and a living trust is that a testamentary trust

Accepted Answer

A) is written by an attorney. 
B) is created by a will. 
C) exists only after probate. 
D) is controlled by the heirs. 
E) both B and C. 
A) is written by an attorney. 
B) is created by a will. 
C) exists only after probate. 
D) is controlled by the heirs. 
E) both B and C.

Question 7

________ is a type of ownership that exists only between married couples.

Accepted Answer

A) Survivorship tenancy 
B) Tenancy by the entirety 
C) Common tenancy 
D) Marriage tenancy 
E) Conjugal tenancy 
A) Survivorship tenancy 
B) Tenancy by the entirety 
C) Common tenancy 
D) Marriage tenancy 
E) Conjugal tenancy

Question 8

The U.S.tax code allows ________ to transfer the entire estate to the survivor tax-free,assuming the recipient is a U.S.citizen.

Accepted Answer

A) a generation-skipping clause 
B) gift taxes 
C) a common disaster clause 
D) tenancy in common 
E) an unlimited marital deduction 
A) a generation-skipping clause 
B) gift taxes 
C) a common disaster clause 
D) tenancy in common 
E) an unlimited marital deduction

Question 9

Someone who receives assets or money from a person after death is called the deceased's

Accepted Answer

A) receptor. 
B) receptee. 
C) obtainee. 
D) beneficiary. 
E) none of the above. 
A) receptor. 
B) receptee. 
C) obtainee. 
D) beneficiary. 
E) none of the above.

Question 10

Madonna is a famous singer;as such,she may select to settle her estate through a trust because of which reason(s)?

Accepted Answer

A) Trusts are harder to challenge. 
B) Trusts reduce estate taxes. 
C) Trusts provide confidentiality. 
D) Trusts allow for professional management. 
E) All of the above 
A) Trusts are harder to challenge. 
B) Trusts reduce estate taxes. 
C) Trusts provide confidentiality. 
D) Trusts allow for professional management. 
E) All of the above

Question 11

Carey is a widow with two teenagers,Brenda age 13 and Terry age 15.Her health has declined and she knows that a will should be drafted.Which of the following statements is not an important reason to have a will?

Accepted Answer

A) Without a will the court will choose Brenda's and Terry's guardian(s). 
B) Without a will the court will appoint an administrator for the estate. 
C) The children's best interests may not be served without a will. 
D) Without a will,the estate administration fees may cost more,thus leaving less to heirs. 
E) All of the above are reasons Carey should have a will. 
A) Without a will the court will choose Brenda's and Terry's guardian(s). 
B) Without a will the court will appoint an administrator for the estate. 
C) The children's best interests may not be served without a will. 
D) Without a will,the estate administration fees may cost more,thus leaving less to heirs. 
E) All of the above are reasons Carey should have a will.

Question 12

The unified tax credit

Accepted Answer

A) Allows individuals to give $14,000 tax-free each year to as many people as they like. 
B) Ensures that almost half of any amount that you pass on beyond the first $3.5 million of an estate will be lost in taxes. 
C) Lets money be passed down from a grandparent to a grandchild tax-free. 
D) Essentially nullifies the taxes on the first $5.49 million of an estate. 
A) Allows individuals to give $14,000 tax-free each year to as many people as they like. 
B) Ensures that almost half of any amount that you pass on beyond the first $3.5 million of an estate will be lost in taxes. 
C) Lets money be passed down from a grandparent to a grandchild tax-free. 
D) Essentially nullifies the taxes on the first $5.49 million of an estate.

Question 13

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Accepted Answer

A) True 
 B)False

Question 14

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

Accepted Answer

A) There may be a prior conflicting will. 
B) Multiple wills make a mess out of the probate process. 
C) The probate process will slow down tremendously. 
D) It could be many years before the heirs receive their inheritance. 
E) All of the above 
A) There may be a prior conflicting will. 
B) Multiple wills make a mess out of the probate process. 
C) The probate process will slow down tremendously. 
D) It could be many years before the heirs receive their inheritance. 
E) All of the above

Question 15

If a family has young children,or there are children from a previous marriage,then a trust is probably the best way to go for estate planning.

Accepted Answer

A) True 
 B)False

Question 16

The introductory statement of a will identifies whose will it is and revokes any prior wills.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

Accepted Answer

A) sprinkling 
B) family 
C) Q-TIP 
D) revocable 
A) sprinkling 
B) family 
C) Q-TIP 
D) revocable

Question 18

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2017?

Accepted Answer

A) $14,000 per year 
B) $42,000 per year 
C) $54,000 per year 
D) $84,000 per year 
A) $14,000 per year 
B) $42,000 per year 
C) $54,000 per year 
D) $84,000 per year

Question 19

What should you do once your will has been drawn up?

Accepted Answer

Signing the will in the presen

Question 20

Only about ________ Americans have created a trust as part of an estate plan.

Accepted Answer

A) one out of three 
B) one out of five 
C) five out of 10 
D) eight out of 10 
A) one out of three 
B) one out of five 
C) five out of 10 
D) eight out of 10

Make a list of ways to avoid probate.

What methods exist to avoid probate,or to establish non-probate property?

You were almost killed in a recent mountain bike accident and have decided to write a will.You also plan to construct a(n)________,which will give information and directions with respect to the execution of your will.

Under joint tenancy with the right of survivorship,two or more individuals share ownership of the assets;when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

The unified tax credit effectively nullifies the taxes on the first $5.49 million of one's estate.

The difference between a testamentary trust and a living trust is that a testamentary trust

________ is a type of ownership that exists only between married couples.

The U.S.tax code allows ________ to transfer the entire estate to the survivor tax-free,assuming the recipient is a U.S.citizen.

Someone who receives assets or money from a person after death is called the deceased's

Madonna is a famous singer;as such,she may select to settle her estate through a trust because of which reason(s)?

Carey is a widow with two teenagers,Brenda age 13 and Terry age 15.Her health has declined and she knows that a will should be drafted.Which of the following statements is not an important reason to have a will?

The unified tax credit

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

If a family has young children,or there are children from a previous marriage,then a trust is probably the best way to go for estate planning.

The introductory statement of a will identifies whose will it is and revokes any prior wills.

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2017?

What should you do once your will has been drawn up?

Only about ________ Americans have created a trust as part of an estate plan.

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

Make a list of ways to avoid probate.

What methods exist to avoid probate,or to establish non-probate property?

You were almost killed in a recent mountain bike accident and have decided to write a will.You also plan to construct a(n)________,which will give information and directions with respect to the execution of your will.

Under joint tenancy with the right of survivorship,two or more individuals share ownership of the assets;when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.

The unified tax credit effectively nullifies the taxes on the first $5.49 million of one's estate.

The difference between a testamentary trust and a living trust is that a testamentary trust

________ is a type of ownership that exists only between married couples.

The U.S.tax code allows ________ to transfer the entire estate to the survivor tax-free,assuming the recipient is a U.S.citizen.

Someone who receives assets or money from a person after death is called the deceased's

Madonna is a famous singer;as such,she may select to settle her estate through a trust because of which reason(s)?

Carey is a widow with two teenagers,Brenda age 13 and Terry age 15.Her health has declined and she knows that a will should be drafted.Which of the following statements is not an important reason to have a will?

The unified tax credit

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

If a family has young children,or there are children from a previous marriage,then a trust is probably the best way to go for estate planning.

The introductory statement of a will identifies whose will it is and revokes any prior wills.

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2017?

What should you do once your will has been drawn up?

Only about ________ Americans have created a trust as part of an estate plan.

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