Question 1

A trust established by your will that becomes effective upon your death is called a(n)  ____________ trust.

Accepted Answer

A)   testamentary
B)   living
C)   revocable
D)   irrevocable
E)   insuranceF) B) and C)
G) A) and C)

Question 2

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) None of the above
G) C) and E) E

Question 3

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

Accepted Answer

A)   Being in the military
B)   Being 16 years of age
C)   Being unmarried
D)   Being over 65 years of age
E)   Being a family member of the deceasedF) A) and E)
G) B) and D)

Question 4

Making any changes on the face of your will can invalidate it.

Accepted Answer

A) True 
 B)False  True

Question 5

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 E)
G) A) and C)

Question 6

A simple will is sufficient for most smaller estates.

Accepted Answer

A) True 
 B)False  True

Question 7

If you never married, you don't need to organize your personal and financial documents.

Accepted Answer

A) True 
 B)False

Question 8

Your executor can be a family member, a friend, an attorney, an accountant, or the trust department of a bank.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following statements is true about estate planning?

Accepted Answer

A)   Estate planning is only for the rich.
B)   It is always easy to plan for your family's financial security in the event of your death.
C)   Most people provide a lifetime of income for those who will survive them.
D)   Most people give meticulous attention to estate planning.
E)   Many people do little to financially prepare for death.F) A) and B)
G) B) and C)

Question 10

Which statement is not true about a formal will?

Accepted Answer

A)   It is usually prepared without an attorney's assistance.
B)   It may be typed.
C)   It may be on a preprinted form.
D)   You must sign it in the presence of two witnesses.
E)   It must also be signed by the witnesses.F) A) and B)
G) A) and C)

Question 11

A will is:

Accepted Answer

A)   the legal declaration of a person's mind as to the disposition of his or her property after his or her death.
B)   a synonym for a prenuptial agreement.
C)   a legal document authorizing someone to act on your behalf.
D)   a synonym for a letter of last instruction.
E)   a legal arrangement through which your assets are held by someone else.F) B) and E)
G) A) and C)

Question 12

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 include which of the following?

Accepted Answer

A)   Living will
B)   Health care proxy
C)   Letter of last instruction
D)   Advance directives include all of these provisions.
E)   Durable power of attorneyF) C) and E)
G) B) and C)

Question 13

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

Accepted Answer

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

Question 14

George Smith worries that his deteriorating health is going to make it difficult for him to conduct his day-to-day business. 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) C) and E)
G) C) and D)

Question 15

Matthew Miller has created a will and left everything to his wife Kate. What type of will has he created?

Accepted Answer

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

Question 16

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 17

A legal document authorizing someone to act on your behalf is called a:

Accepted Answer

A)   codicil.
B)   rider.
C)   power of attorney.
D)   trustor.
E)   proxy.F) A) and D)
G) A) and C)

Question 18

The American Taxpayer Relief Act of 2012 provides a permanent gift and estate tax exemption of how much for individuals?

Accepted Answer

A)   $2.0 million
B)   $4.5 million
C)   $5.25 million
D)   $6.75 million
E)   $8.0 millionF) B) and C)
G) B) and E)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A simple will, which leaves everything to the spouse, is also sometimes called a(n) :

Accepted Answer

A)   traditional marital share will.
B)   exemption trust will.
C)   I love you will.
D)   stated dollar amount will.
E)   None of these.F) D) and E)
G) C) and E)

Exam 19: Estate Planning

A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

Making any changes on the face of your will can invalidate it.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

A simple will is sufficient for most smaller estates.

Correct AnswerverifiedTrue

If you never married, you don't need to organize your personal and financial documents.

Correct AnswerverifiedShow Answer

Your executor can be a family member, a friend, an attorney, an accountant, or the trust department of a bank.

Correct AnswerverifiedShow Answer

Which one of the following statements is true about estate planning?

Correct AnswerverifiedShow Answer

Which statement is not true about a formal will?

Correct AnswerverifiedShow Answer

A will is:

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 include which of the following?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

George Smith worries that his deteriorating health is going to make it difficult for him to conduct his day-to-day business. 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

Matthew Miller has created a will and left everything to his wife Kate. What type of will has he created?

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

A legal document authorizing someone to act on your behalf is called a:

Correct AnswerverifiedShow Answer

The American Taxpayer Relief Act of 2012 provides a permanent gift and estate tax exemption of how much for individuals?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A simple will, which leaves everything to the spouse, is also sometimes called a(n) :

Correct AnswerverifiedShow Answer

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E

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True

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