Question 1

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 2

A disclaimer trust is designed for the couple who do not yet have enough assets to need a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 3

Gerry Legere has died without writing a will.What is the legal term for this?

Accepted Answer

A)  Probate
B)  Intestate
C)  Testamentary
D)  Statutory
E)  CodicilF) B) and D)
G) B) and C)

Question 4

You can assign a durable power of attorney to anyone you choose.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Unmarried couples face formidable retirement and estate planning challenges.

Accepted Answer

A) True 
 B)False

Question 7

Probate is a legal procedure of proving a valid or invalid will.

Accepted Answer

A) True 
 B)False

Question 8

A living will is a good substitute for a traditional will.

Accepted Answer

A) True 
 B)False

Question 9

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Accepted Answer

A)  Tenants in common
B)  Tenancy by the entirety
C)  Joint tenants with the right of survivorship
D)  Tenancy by seniority
E)  Tenancy by defaultF) A) and D)
G) C) and E)

Question 10

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

James Fitzwater has created a will that leaves exactly $2 million to his wife in anticipation of her income needs.What type of will has James created?

Accepted Answer

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

Question 13

A federal and state tax levied on the privilege of making gifts to others is called a ____________ tax.

Accepted Answer

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

Question 14

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

Question 15

The adjusted gross estate is equal to the gross estate minus debts and costs.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

If you die without a valid will,you die intestate.

Accepted Answer

A) True 
 B)False

Question 18

If you never married,you don't need to organize your financial affairs.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Accepted Answer

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

Exam 19: Estate Planning

James Fitzwater has created a will that leaves exactly $2 million to his wife in anticipation of her income needs.What type of will has James created?

Correct AnswerverifiedShow Answer

You can assign a durable power of attorney to anyone you choose.

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

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

Correct AnswerverifiedShow Answer

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Correct AnswerverifiedShow Answer

The adjusted gross estate is equal to the gross estate minus debts and costs.

Correct AnswerverifiedShow Answer

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren.

Correct AnswerverifiedShow Answer

A federal and state tax levied on the privilege of making gifts to others is called a ____________ tax.

Correct AnswerverifiedShow Answer

In estate planning,if you are married:

Correct AnswerverifiedShow Answer

Probate is a legal procedure of proving a valid or invalid will.

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

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

If you never married,you don't need to organize your financial affairs.

Correct AnswerverifiedShow Answer

Unmarried couples face formidable retirement and estate planning challenges.

Correct AnswerverifiedShow Answer

A disclaimer trust is designed for the couple who do not yet have enough assets to need a credit-shelter trust.

Correct AnswerverifiedShow Answer

A living will is a good substitute for a traditional will.

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 legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Correct AnswerverifiedShow Answer

Gerry Legere has died without writing a will.What is the legal term for this?

Correct AnswerverifiedShow Answer

If you die without a valid will,you die intestate.

Correct AnswerverifiedShow Answer

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