Question 1

Inheritance taxes are imposed only by the state governments.

Accepted Answer

A) True 
 B)False

Question 2

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Accepted Answer

A)  Tenancy by default
B)  Tenancy by the entirety
C)  Tenancy in common
D)  Joint tenants with the right of survivorship
E)  Simple tenancyF) B) and E)
G) A) and B)

Question 3

A living will that is valid in 42 states can be downloaded from the Aging with Dignity organization and is called:

Accepted Answer

A)  Last Rights
B)  Ignore Your Wishes
C)  Five Wishes
D)  Dying Wishes
E)  Right to Life RightsF) A) and D)
G) A) and B)

Question 4

Which one of the following wills is called an "I love you" will?

Accepted Answer

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

Question 5

Estate planning includes a subject most people would rather avoid: death-your own or that of your spouse.

Accepted Answer

A) True 
 B)False

Question 6

Which statement is not true about an ethical will?

Accepted Answer

A)  It is used to pass on your values and beliefs to your heirs.
B)  It is a legally binding document.
C)  It helps with estate planning.
D)  It requires earnest self-examination.
E)  It is a way to express love and share lessons learned.F) None of the above
G) A) and B)

Question 7

A simple will creates lower overall taxation for all individuals.

Accepted Answer

A) True 
 B)False

Question 8

Wills have existed for thousands of years; the oldest known will was written by an Egyptian pharaoh in 2448 BC.

Accepted Answer

A) True 
 B)False

Question 9

Estate planning has two parts.The first part consists of:

Accepted Answer

A)  building your estate through savings,investments,and insurance.
B)  transferring your estate,while you are alive,in the manner you have specified.
C)  deciding who is going to get what.
D)  evaluating your assets and liabilities.
E)  planning for the period right after you die.F) A) and B)
G) A) and C)

Question 10

A unique feature of a self-declaration trust is that the creator of the trust is also the trustee.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  It can reduce or provide for payment of 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 all of these things.F) A) and E)
G) D) and E)

Question 12

An ethical will is a way to pass on your values and beliefs to your heirs.

Accepted Answer

A) True 
 B)False

Question 13

Probate is less expensive,quicker,and more private than a living trust.

Accepted Answer

A) True 
 B)False

Question 14

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often do not include which of the following?

Accepted Answer

A)  Living will
B)  Health care proxy
C)  Letter of last instruction
D)  Simple will
E)  Durable power of attorneyF) A) and D)
G) A) and C)

Question 15

An inter vivos trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) True 
 B)False

Question 16

A statutory will is one type of formal will.

Accepted Answer

A) True 
 B)False

Question 17

Community property is any property that has been acquired by only one of the spouses before the marriage,but not by gift,devise,bequest or inheritance,or by the income therefrom.

Accepted Answer

A) True 
 B)False

Question 18

A handwritten will is called a(n) :

Accepted Answer

A)  holographic will.
B)  formal will.
C)  statutory will.
D)  exemption trust will.
E)  informal will.F) C) and D)
G) D) and E)

Question 19

Will Jones has created a will that leaves everything to his wife except an exemption amount of $3 million.This exemption amount passes into a trust.What type of will has Will created?

Accepted Answer

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

Question 20

Which document identifies the will being amended,confirms the unchanged sections of the will,and changes a provision(s) in your existing will?

Accepted Answer

A)  Codicil
B)  Tracer
C)  Addendum
D)  Rider
E)  FloaterF) A) and E)
G) A) and C)

Exam 19: Estate Planning

Which document identifies the will being amended,confirms the unchanged sections of the will,and changes a provision(s) in your existing will?

Correct AnswerverifiedShow Answer

Will Jones has created a will that leaves everything to his wife except an exemption amount of $3 million.This exemption amount passes into a trust.What type of will has Will created?

Correct AnswerverifiedShow Answer

Wills have existed for thousands of years; the oldest known will was written by an Egyptian pharaoh in 2448 BC.

Correct AnswerverifiedShow Answer

Community property is any property that has been acquired by only one of the spouses before the marriage,but not by gift,devise,bequest or inheritance,or by the income therefrom.

Correct AnswerverifiedShow Answer

A statutory will is one type of formal will.

Correct AnswerverifiedShow Answer

Inheritance taxes are imposed only by the state governments.

Correct AnswerverifiedShow Answer

Estate planning has two parts.The first part consists of:

Correct AnswerverifiedShow Answer

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Correct AnswerverifiedShow Answer

A handwritten will is called a(n) :

Correct AnswerverifiedShow Answer

Which one of the following wills is called an "I love you" will?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A living will that is valid in 42 states can be downloaded from the Aging with Dignity organization and is called:

Correct AnswerverifiedShow Answer

Which statement is not true about an ethical will?

Correct AnswerverifiedShow Answer

An inter vivos trust is a property management arrangement that you establish while you are alive.

Correct AnswerverifiedShow Answer

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often do not include which of the following?

Correct AnswerverifiedShow Answer

A simple will creates lower overall taxation for all individuals.

Correct AnswerverifiedShow Answer

Probate is less expensive,quicker,and more private than a living trust.

Correct AnswerverifiedShow Answer

A unique feature of a self-declaration trust is that the creator of the trust is also the trustee.

Correct AnswerverifiedShow Answer

An ethical will is a way to pass on your values and beliefs to your heirs.

Correct AnswerverifiedShow Answer

Estate planning includes a subject most people would rather avoid: death-your own or that of your spouse.

Correct AnswerverifiedShow Answer

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