Question 1

Two key goals of estate planning are to ensure that your assets pass to your chosen beneficiaries and to minimize taxes to be paid.

Accepted Answer

A) True 
 B)False

Question 2

If you are involved in a common-law relationship,it is the same as being married regarding preferential share entitlement.

Accepted Answer

A) True 
 B)False

Question 3

A power of attorney for health care can give someone you designate the power to make which of the following decisions?

Accepted Answer

A) Pay your bills while you are in the hospital 
B) Decide on funeral arrangements 
C) Make decisions for you about specific treatment options 
D) Distribute assets while you are in a nursing home 
A) Pay your bills while you are in the hospital 
B) Decide on funeral arrangements 
C) Make decisions for you about specific treatment options 
D) Distribute assets while you are in a nursing home

Question 4

The document that describes funeral preferences and indicates where key financial records are kept is called the letter of last rites.

Accepted Answer

A) True 
 B)False

Question 5

A legal document granting a person the power to make specific decisions for you in the event that you become incapacitated is called a(n)

Accepted Answer

A) durable power of attorney. 
B) enduring power of attorney. 
C) living will. 
D) general power of attorney. 
A) durable power of attorney. 
B) enduring power of attorney. 
C) living will. 
D) general power of attorney.

Question 6

In which province is the preferential share most generous to the surviving spouse?

Accepted Answer

A) British Columbia 
B) Newfoundland 
C) Ontario 
D) Quebec 
A) British Columbia 
B) Newfoundland 
C) Ontario 
D) Quebec

Question 7

In the year of death,contributions to registered charitable organizations through your will

Accepted Answer

A) can be made to a family member. 
B) are restricted to 75 percent of gross income. 
C) can be 100 percent of net income and that of the preceding year. 
D) is capped at $75 000. 
A) can be made to a family member. 
B) are restricted to 75 percent of gross income. 
C) can be 100 percent of net income and that of the preceding year. 
D) is capped at $75 000.

Question 8

The final tax return is normally filed within 12 months of the date of death,or on April 30th of the following year,whichever is later.

Accepted Answer

A) True 
 B)False

Question 9

Explain the differences between and the importance of using continuing and non-continuing forms of a power of attorney in estate planning.

Accepted Answer

Non-continuing powers of attorney have a

Question 10

If your spouse has predeceased you,RRSPs

Accepted Answer

A) can pass to registered charities with no tax liability. 
B) are fully taxable. 
C) can pass to a dependant child with no tax liability. 
D) are taxed as capital gains. 
A) can pass to registered charities with no tax liability. 
B) are fully taxable. 
C) can pass to a dependant child with no tax liability. 
D) are taxed as capital gains.

Question 11

Which of the following is the start of the probate process?

Accepted Answer

A) Payment of claims against the estate 
B) The validation of the will 
C) Determination of legal heirs 
D) Filing the will and probate form with the court 
A) Payment of claims against the estate 
B) The validation of the will 
C) Determination of legal heirs 
D) Filing the will and probate form with the court

Question 12

A will,while nice to have,isn't Chaptericularly important in estate planning because each province has laws to determine the distribution of assets when a will was not created.

Accepted Answer

A) True 
 B)False

Question 13

There may be a need to distribute half of the estate to the spouse and the other half to any other beneficiaries due to

Accepted Answer

A) intestacy law. 
B) the wills variation Act. 
C) the preferential marital share. 
D) consanguinity. 
A) intestacy law. 
B) the wills variation Act. 
C) the preferential marital share. 
D) consanguinity.

Question 14

A general power of attorney

Accepted Answer

A) enables the attorney to make a new will for you. 
B) terminates automatically when assets run out. 
C) does not provide immediate authority until someone becomes ill. 
D) terminates if the attorney dies. 
A) enables the attorney to make a new will for you. 
B) terminates automatically when assets run out. 
C) does not provide immediate authority until someone becomes ill. 
D) terminates if the attorney dies.

Question 15

Inter vivos trusts

Accepted Answer

A) are formed to protect assets for a dependant child. 
B) may not be used for fixed assets such as a cottage. 
C) are continually and actively managed by the settlor. 
D) pay taxes on earnings at the highest marginal rate. 
A) are formed to protect assets for a dependant child. 
B) may not be used for fixed assets such as a cottage. 
C) are continually and actively managed by the settlor. 
D) pay taxes on earnings at the highest marginal rate.

Question 16

Minor changes to a will can be made with a simple document called a codicil.

Accepted Answer

A) True 
 B)False

Question 17

The liability clause in a will serves what purpose?

Accepted Answer

A) It holds the executor legally liable for any mistakes made in the administration of the will. 
B) It absolves the executor of legal liability for any mistakes made in the administration of the will. 
C) It holds the executor legally liable for any mistakes made in the administration of the will on in the case of gross negligence. 
D) It absolves the executor of legal liability for any mistakes made in the administration of the will if the executor acted in good faith. 
A) It holds the executor legally liable for any mistakes made in the administration of the will. 
B) It absolves the executor of legal liability for any mistakes made in the administration of the will. 
C) It holds the executor legally liable for any mistakes made in the administration of the will on in the case of gross negligence. 
D) It absolves the executor of legal liability for any mistakes made in the administration of the will if the executor acted in good faith.

Question 18

The value of the estate is calculated using

Accepted Answer

A) cost. 
B) fair market value. 
C) cost plus inflation. 
D) the consumer price index. 
A) cost. 
B) fair market value. 
C) cost plus inflation. 
D) the consumer price index.

Question 19

Enduring powers of attorney must only be granted to people of utmost trustworthiness because of their power.

Accepted Answer

A) True 
 B)False

Question 20

A testamentary trust comes into force upon death.

Accepted Answer

A) True 
 B)False

Two key goals of estate planning are to ensure that your assets pass to your chosen beneficiaries and to minimize taxes to be paid.

If you are involved in a common-law relationship,it is the same as being married regarding preferential share entitlement.

A power of attorney for health care can give someone you designate the power to make which of the following decisions?

The document that describes funeral preferences and indicates where key financial records are kept is called the letter of last rites.

A legal document granting a person the power to make specific decisions for you in the event that you become incapacitated is called a(n)

In which province is the preferential share most generous to the surviving spouse?

In the year of death,contributions to registered charitable organizations through your will

The final tax return is normally filed within 12 months of the date of death,or on April 30th of the following year,whichever is later.

Explain the differences between and the importance of using continuing and non-continuing forms of a power of attorney in estate planning.

If your spouse has predeceased you,RRSPs

Which of the following is the start of the probate process?

A will,while nice to have,isn't Chaptericularly important in estate planning because each province has laws to determine the distribution of assets when a will was not created.

There may be a need to distribute half of the estate to the spouse and the other half to any other beneficiaries due to

A general power of attorney

Inter vivos trusts

Minor changes to a will can be made with a simple document called a codicil.

The liability clause in a will serves what purpose?

The value of the estate is calculated using

Enduring powers of attorney must only be granted to people of utmost trustworthiness because of their power.

A testamentary trust comes into force upon death.

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 5: Retirement and Estate Planning - Estate Planning

Two key goals of estate planning are to ensure that your assets pass to your chosen beneficiaries and to minimize taxes to be paid.

If you are involved in a common-law relationship,it is the same as being married regarding preferential share entitlement.

A power of attorney for health care can give someone you designate the power to make which of the following decisions?

The document that describes funeral preferences and indicates where key financial records are kept is called the letter of last rites.

A legal document granting a person the power to make specific decisions for you in the event that you become incapacitated is called a(n)

In which province is the preferential share most generous to the surviving spouse?

In the year of death,contributions to registered charitable organizations through your will

The final tax return is normally filed within 12 months of the date of death,or on April 30th of the following year,whichever is later.

Explain the differences between and the importance of using continuing and non-continuing forms of a power of attorney in estate planning.

If your spouse has predeceased you,RRSPs

Which of the following is the start of the probate process?

A will,while nice to have,isn't Chaptericularly important in estate planning because each province has laws to determine the distribution of assets when a will was not created.

There may be a need to distribute half of the estate to the spouse and the other half to any other beneficiaries due to

A general power of attorney

Inter vivos trusts

Minor changes to a will can be made with a simple document called a codicil.

The liability clause in a will serves what purpose?

The value of the estate is calculated using

Enduring powers of attorney must only be granted to people of utmost trustworthiness because of their power.

A testamentary trust comes into force upon death.

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters