Question 1

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her.What type of document would be best for her to prepare?

Accepted Answer

A)  Ethical will
B)  Durable power of attorney
C)  Letter of last instruction
D)  Codicil
E)  Formal willF) C) and D)
G) B) and D)

Question 2

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 dispenses emotional and spiritual wealth.
D)  It requires earnest self-examination.
E)  It is a way to express love and pass on lessons learned.F) B) and C)
G) D) and E)

Question 3

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

Accepted Answer

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

Question 4

If your beneficiary is too young or unable to handle money wisely,which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Accepted Answer

A)  A spendthrift trust
B)  A charitable lead trust
C)  A charitable reminder trust
D)  A self-declaration trust
E)  A generation-skipping trustF) None of the above
G) C) and D)

Question 5

Which of the following are rules to remember when writing a will?

Accepted Answer

A)  In most states, you must be 18 years of age or older.
B)  A will must be written in sound judgment and mental capacity to be valid.
C)  The document must clearly state that it is your will.
D)  The will must name an executor.
E)  All of these are rules to remember.F) A) and B)
G) A) and C)

Question 6

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

Accepted Answer

A)  Grantor retained annuity trust
B)  Life insurance trust
C)  Marital-deduction trust
D)  Self-declaration trust
E)  Charitable lead trustF) A) and B)
G) A) and C)

Question 7

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) B) and C)

Question 8

A large percentage of people do little or nothing to provide for those who will survive them.

Accepted Answer

A) True 
 B)False

Question 9

A beneficiary is a person who has been named to receive property under the will.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and B)
G) B) and E)

Question 11

How many months after your death is the federal estate tax due and payable in cash?

Accepted Answer

A)  3
B)  6
C)  9
D)  12
E)  15F) C) and D)
G) B) and D)

Question 12

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)  $5.45 million
D)  $6.75 million
E)  $8.0 millionF) A) and D)
G) C) and D)

Question 13

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 14

A statutory will is one type of formal will.

Accepted Answer

A) True 
 B)False

Question 15

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Accepted Answer

A) True 
 B)False

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

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

Question 18

Gary Ruhle has assets worth $2,400,000.Since he plans to travel and does not want to oversee these assets,he has created a legal arrangement so the assets can be managed by an officer of his local bank.What type of legal arrangement has he likely made?

Accepted Answer

A)  Guardianship
B)  Statutory will
C)  Trust agreement
D)  Living will
E)  Letter of instructionF) B) and C)
G) C) and E)

Question 19

Explain what a will is and what occurs at your death if you do not have one.

Accepted Answer

A will is a legal declaration of a perso...

Question 20

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a ____________ tax.

Accepted Answer

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

Exam 19: Estate Planning

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

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

If you die without a valid will:

Correct AnswerverifiedShow Answer

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her.What type of document would be best for her to prepare?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which statement is not true about an ethical will?

Correct AnswerverifiedShow Answer

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

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

If your beneficiary is too young or unable to handle money wisely,which kind of trust allows the beneficiary to receive small amounts of money at specified intervals?

Correct AnswerverifiedShow Answer

Which of the following are rules to remember when writing a will?

Correct AnswerverifiedShow Answer

Gary Ruhle has assets worth $2,400,000.Since he plans to travel and does not want to oversee these assets,he has created a legal arrangement so the assets can be managed by an officer of his local bank.What type of legal arrangement has he likely made?

Correct AnswerverifiedShow Answer

Explain what a will is and what occurs at your death if you do not have one.

Correct AnswerverifiedA will is a legal declaration of a perso...View AnswerShow 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

How many months after your death is the federal estate tax due and payable in cash?

Correct AnswerverifiedShow Answer

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

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 statutory will is one type of formal will.

Correct AnswerverifiedShow Answer

A large percentage of people do little or nothing to provide for those who will survive them.

Correct AnswerverifiedShow Answer

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a ____________ tax.

Correct AnswerverifiedShow Answer

A beneficiary is a person who has been named to receive property under the will.

Correct AnswerverifiedShow Answer

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A will is a legal declaration of a perso...
View Answer

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