Question 1

Which of the following would be a benefit of establishing a trust?

Accepted Answer

A)  It can reduce or provide payment for estate taxes.
B)  It can allow you to avoid probate and transfer assets immediately to beneficiaries.
C)  It can free you from managing your assets,while providing you a regular income.
D)  It can ensure that your property serves a desired purpose after you die.
E)  A trust can do everything listed in the other answers.F) A) and D)
G) B) and E)

Question 2

If only a few changes are needed in your will,adding a codicil may be the best choice.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following wills leaves everything to your spouse?

Accepted Answer

A)  simple
B)  traditional marital share
C)  exemption trust
D)  stated dollar amount
E)  livingF) A) and B)
G) A) and C)

Question 4

A qualified personal residence trust,or QPRT,lets you get your home or vacation home out of your estate.

Accepted Answer

A) True 
 B)False

Question 5

Under the traditional marital share will,half of your estate is taxed at your death and half at your spouse's death.

Accepted Answer

A) True 
 B)False

Question 6

You should avoid probate because it is expensive,lengthy,and public.

Accepted Answer

A) True 
 B)False

Question 7

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Accepted Answer

A)  marital share
B)  statutory
C)  formal
D)  exemption trust
E)  livingF) A) and D)
G) A) and C)

Question 8

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n) :

Accepted Answer

A)  beneficiary.
B)  executor.
C)  trustee.
D)  guardian.
E)  executrix.F) A) and D)
G) B) and C)

Question 9

Estate planning has two parts.The second part of estate planning consists of:

Accepted Answer

A)  building your estate through savings.
B)  transferring your estate in the manner you have specified.
C)  deciding who should be your attorney.
D)  evaluating your assets and liabilities.
E)  buying life insurancE.F) D) and E)
G) B) and C)

Question 10

Sally Forth has a trust that she can end at any time she wants.What type of trust does Sally have?

Accepted Answer

A)  revocable trust
B)  irrevocable trust
C)  bargain trust
D)  negotiable trust
E)  non-negotiable trustF) B) and D)
G) A) and B)

Question 11

Many people do little,if any,estate planning.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an important document needed for estate planning?

Accepted Answer

A)  your driver's license
B)  your transcript from college
C)  your birth certificate
D)  your birthday cards
E)  all of the items listed in the other answersF) A) and C)
G) A) and D)

Question 13

Which will should be written,dated,and signed entirely in your own handwriting?

Accepted Answer

A)  informal
B)  marital trust
C)  formal
D)  statutory
E)  holographicF) A) and C)
G) B) and C)

Question 14

Which of the following would keep you from being an executor of a will?

Accepted Answer

A)  having been convicted of a felony
B)  being over 70 years of age
C)  being married
D)  being a coworker of the deceased
E)  being a child of the deceasedF) B) and C)
G) A) and D)

Question 15

What are the federal and state tax considerations in estate planning?

Accepted Answer

The answer of What are the federal and state tax...

Question 16

A credit-shelter trust is known as a bypass trust,a "residuary" trust,an A/B trust,or a family trust.

Accepted Answer

A) True 
 B)False

Question 17

It is unnecessary to modify your will when you divorce or remarry.

Accepted Answer

A) True 
 B)False

Question 18

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Accepted Answer

A)  simple
B)  traditional marital share
C)  exemption trust
D)  stated dollar amount
E)  A/B trustF) B) and E)
G) A) and E)

Question 19

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Accepted Answer

A) True 
 B)False

Question 20

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Accepted Answer

A) True 
 B)False

Exam 19: Estate Planning

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Correct AnswerverifiedShow Answer

Which will should be written,dated,and signed entirely in your own handwriting?

Correct AnswerverifiedShow Answer

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n) :

Correct AnswerverifiedShow Answer

A will is a legal declaration of a person's mind as to the disposition of his or her property after death.

Correct AnswerverifiedShow Answer

Many people do little,if any,estate planning.

Correct AnswerverifiedShow Answer

Sally Forth has a trust that she can end at any time she wants.What type of trust does Sally have?

Correct AnswerverifiedShow Answer

A credit-shelter trust is known as a bypass trust,a "residuary" trust,an A/B trust,or a family trust.

Correct AnswerverifiedShow Answer

Which of the following is an important document needed for estate planning?

Correct AnswerverifiedShow Answer

If only a few changes are needed in your will,adding a codicil may be the best choice.

Correct AnswerverifiedShow Answer

What are the federal and state tax considerations in estate planning?

Correct AnswerverifiedShow Answer

A qualified personal residence trust,or QPRT,lets you get your home or vacation home out of your estate.

Correct AnswerverifiedShow Answer

It is unnecessary to modify your will when you divorce or remarry.

Correct AnswerverifiedShow Answer

Which of the following would keep you from being an executor of a will?

Correct AnswerverifiedShow Answer

Which of the following would be a benefit of establishing a trust?

Correct AnswerverifiedShow Answer

Last-minute "death-bed" estate planning may fail to carry out your wishes.

Correct AnswerverifiedShow Answer

Estate planning has two parts.The second part of estate planning consists of:

Correct AnswerverifiedShow Answer

Which one of the following wills leaves everything to your spouse?

Correct AnswerverifiedShow Answer

Under the traditional marital share will,half of your estate is taxed at your death and half at your spouse's death.

Correct AnswerverifiedShow Answer

You should avoid probate because it is expensive,lengthy,and public.

Correct AnswerverifiedShow Answer

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Correct AnswerverifiedShow Answer

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