Question 1

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n) :

Accepted Answer

A)  credit-shelter trust.
B)  marital-deduction trust.
C)  living trust.
D)  inter vivos trust.
E)  disclaimer trust.F) All of the above
G) B) and D)

Question 2

Which will is sufficient for most smaller estates?

Accepted Answer

A)  Simple
B)  Traditional marital share
C)  Exemption trust
D)  Stated dollar amount
E)  LivingF) C) and E)
G) C) and D)

Question 3

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) A) and D)
G) B) and C)

Question 4

Your executor can be which of the following:

Accepted Answer

A)  a family member.
B)  a friend.
C)  an attorney.
D)  an accountant.
E)  Your executor can be any of these.F) C) and D)
G) D) and E)

Question 5

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.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) A) and B)
G) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In estate planning,if you are married:

Accepted Answer

A)  you do not need a will as your spouse is entitled to all of your assets.
B)  your estate planning becomes simpler once you have children.
C)  you should let your spouse do all of your estate planning.
D)  your situation is more complex than when you were still single.
E)  your planning consists solely of naming beneficiaries for your life insurance.F) C) and D)
G) A) and C)

Question 8

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) B) and C)
G) B) and D)

Question 9

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

Accepted Answer

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

Question 10

An estate plan is usually implemented by a will and one or more trust agreements.

Accepted Answer

A) True 
 B)False

Question 11

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

Accepted Answer

A) True 
 B)False

Question 12

If you die without a valid will:

Accepted Answer

A)  the IRS confiscates your property.
B)  a federal court decides how your property will be distributed.
C)  your closest relative will receive all your property according to federal law.
D)  your letter of instruction becomes your will.
E)  your state's law of descent and distribution becomes your will.F) C) and E)
G) A) and C)

Question 13

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Accepted Answer

A) True 
 B)False

Question 14

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Accepted Answer

A)  Simple
B)  Traditional marital share
C)  Exemption trust
D)  Stated dollar amount
E)  A/B trustF) A) and D)
G) C) and D)

Question 15

A formal will may be either typed or on a preprinted form.

Accepted Answer

A) True 
 B)False

Question 16

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Accepted Answer

A)  letter of last instruction.
B)  codicil.
C)  prenuptial agreement.
D)  marital agreement.
E)  marital share will.F) C) and D)
G) B) and D)

Question 17

Grady Perdue has assets worth $1,500,000 and has written a legal document that specifies that all of his money go to his children.After he dies,there is a legal process to determine whether his document specifying how his assets be divided is valid.This is also the legal process by which his executor manages and distributes his property.What is this legal process called?

Accepted Answer

A)  Estate
B)  Will
C)  Trust
D)  Probate
E)  Terms of distributionF) C) and D)
G) C) and E)

Question 18

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Accepted Answer

A) True 
 B)False

Question 19

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Accepted Answer

A)  Letter of last instruction
B)  Durable power of attorney
C)  Will
D)  Revocable trust
E)  Irrevocable trustF) A) and E)
G) A) and D)

Question 20

Joint ownership is a good substitute for a will.

Accepted Answer

A) True 
 B)False

Exam 19: Estate Planning

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

Correct Answer
verified

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Joint ownership is a good substitute for a will.

Correct Answer
verified

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Correct Answer
verified

An estate plan is usually implemented by a will and one or more trust agreements.

Correct Answer
verified

Your executor can be which of the following:

Correct Answer
verified

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

Correct Answer
verified

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Correct Answer
verified

If you die without a valid will:

Correct Answer
verified

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Correct Answer
verified

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

Correct Answer
verified

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Correct Answer
verified

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n) :

Correct Answer
verified

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

Correct Answer
verified

In estate planning,if you are married:

Correct Answer
verified

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

Correct Answer
verified

A formal will may be either typed or on a preprinted form.

Correct Answer
verified

Which will is sufficient for most smaller estates?

Correct Answer
verified

Exam 19: Estate Planning

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

Correct AnswerverifiedShow Answer

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Joint ownership is a good substitute for a will.

Correct AnswerverifiedShow Answer

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Correct AnswerverifiedShow Answer

An estate plan is usually implemented by a will and one or more trust agreements.

Correct AnswerverifiedShow Answer

Your executor can be which of the following:

Correct AnswerverifiedShow Answer

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

Correct AnswerverifiedShow Answer

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Correct AnswerverifiedShow Answer

If you die without a valid will:

Correct AnswerverifiedShow Answer

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Correct AnswerverifiedShow Answer

Related to the concept of a living will is a durable power of attorney also known as a health care proxy.

Correct AnswerverifiedShow Answer

A documentary agreement between spouses before marriage in which one or both parties often waive a right to receive property under the other's will or under state law is called a:

Correct AnswerverifiedShow Answer

A newly practicing surgeon,who will soon finish paying off his college loans,might want to set up a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In estate planning,if you are married:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A formal will may be either typed or on a preprinted form.

Correct AnswerverifiedShow Answer

Which will is sufficient for most smaller estates?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified