Question 1

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) C) and E)
G) All of the above

Question 2

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) B) and D)
G) None of the above

Question 3

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 a tremendous amount of attention to estate planning.
E)  Many people do little to provide for those who will survive them.F) C) and D)
G) B) and E)

Question 4

A letter of last instruction can provide your heirs with important information.

Accepted Answer

A) True 
 B)False

Question 5

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) All of the above
G) A) and C)

Question 6

Gerald Wilkins owns a home worth $250,000,a car worth $15,000,various investments worth $600,000 and other personal assets worth $25,000.What are these things to Gerald?

Accepted Answer

A)  Estate
B)  Will
C)  Trust
D)  Probate
E)  LiabilitiesF) C) and D)
G) A) and C)

Question 7

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

Question 8

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 all of these things.F) A) and B)
G) A) and C)

Question 9

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

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

Question 11

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Accepted Answer

A)  Executor
B)  Trustee
C)  Guardian
D)  Beneficiary
E)  AgentF) A) and B)
G) None of the above

Question 12

Which one of the following statements is correct?

Accepted Answer

A)  Estate planning usually involves a will and trust agreements.
B)  Most people do extensive estate planning.
C)  Most people think they will live forever.
D)  People should not worry about estate planning until they are age 65.
E)  Estate planning is really only necessary if you are wealthy.F) A) and B)
G) D) and E)

Question 13

When death occurs,proof of claims must be produced or the claims will not be processed.

Accepted Answer

A) True 
 B)False

Question 14

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 in your presence.F) None of the above
G) A) and C)

Question 15

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a ____________ tax.

Accepted Answer

A)  estate income
B)  trust income
C)  inheritance
D)  gift
E)  estateF) B) and E)
G) B) and C)

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

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Accepted Answer

A)  Medical directives
B)  Holographic will
C)  Formal will
D)  Letter of last instruction
E)  Living willF) B) and D)
G) A) and B)

Exam 19: Estate Planning

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

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

Which statement is not true about a formal will?

Correct Answer
verified

Gerald Wilkins owns a home worth $250,000,a car worth $15,000,various investments worth $600,000 and other personal assets worth $25,000.What are these things to Gerald?

Correct Answer
verified

When death occurs,proof of claims must be produced or the claims will not be processed.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

A letter of last instruction can provide your heirs with important information.

Correct Answer
verified

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

Correct Answer
verified

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

Correct Answer
verified

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Correct Answer
verified

A tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a ____________ tax.

Correct Answer
verified

Which one of the following statements is correct?

Correct Answer
verified

Exam 19: Estate Planning

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

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

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

Correct AnswerverifiedShow Answer

Which statement is not true about a formal will?

Correct AnswerverifiedShow Answer

Gerald Wilkins owns a home worth $250,000,a car worth $15,000,various investments worth $600,000 and other personal assets worth $25,000.What are these things to Gerald?

Correct AnswerverifiedShow Answer

When death occurs,proof of claims must be produced or the claims will not be processed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A letter of last instruction can provide your heirs with important information.

Correct AnswerverifiedShow Answer

Benjamin Barry has been named by Andie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you marry after you have made a will,the will is revoked automatically unless certain conditions are met.

Correct AnswerverifiedShow Answer

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

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

With a marital-deduction trust,you can leave your spouse any money that doesn't go into a credit-shelter trust.

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

Which one of the following provides for the disposition of your assets and is usually prepared with an attorney's assistance?

Correct AnswerverifiedShow Answer

A tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a ____________ tax.

Correct AnswerverifiedShow Answer

Which one of the following statements is correct?

Correct AnswerverifiedShow Answer

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