Question 1

The creator of the trust is called the settlor or grantor.

Accepted Answer

A) True 
 B)False

Question 2

In estate planning,if you are married:

Accepted Answer

A)   you don't need much estate planning.
B)   your estate planning is rather easy.
C)   only your spouse should be concerned about estate planning.
D)   your situation becomes more complex,and the need for orderliness and clarity becomes greater.
E)   your will takes care of most of estate planning problems.F) A) and B)
G) All of the above

Question 3

Which of the following is not a potential tax that may be incurred at death?

Accepted Answer

A)   income tax due to deemed disposition rules
B)   provincial probate taxes
C)   estate taxes
D)   U.S.estate taxes on U.S.assets
E)   Canadian estate taxes on U.S.assetsF) D) and E)
G) B) and E)

Question 4

Estate planning is not a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Accepted Answer

A) True 
 B)False

Question 5

A handwritten will is called a(n) :

Accepted Answer

A)   formal will.
B)   holographic will.
C)   statutory will.
D)   letter of last instruction.
E)   informal will.F) B) and C)
G) A) and C)

Question 6

Which of the following statements is correct regarding wills?

Accepted Answer

A)   Only married people need a will.
B)   Only married people with dependents need a will.
C)   Only the rich with a considerable estate needs a will.
D)   Every adult needs a will.
E)   Only senior citizens need a will.F) A) and B)
G) A) and C)

Question 7

A trust is a legal arrangement through with a trustee holds your assets for your benefit or that of your beneficiaries.

Accepted Answer

A) True 
 B)False  True

Question 8

Estate planning is useful only to rich and elderly people.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   Many people don't give a single thought to preparing for death.
B)   It is always easy to plan for your family's financial security in the event of your death.
C)   Most people do a lot to provide for those who will survive them.
D)   Most people give meticulous attention to estate planning.
E)   Estate planning is for the rich onlyF) None of the above
G) A) and D) A

Question 10

A spousal trust can be classified as either an inter vivos trust or a testamentary trust.

Accepted Answer

A) True 
 B)False

Question 11

A will is a way to transfer your property according to your wishes after you die.

Accepted Answer

A) True 
 B)False

Question 12

It is always easy to plan for your family's financial security in the event of your death.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   testamentary
B)   living
C)   general
D)   formal
E)   insuranceF) B) and E)
G) None of the above

Question 14

It is not necessary for every adult to have a written will.

Accepted Answer

A) True 
 B)False

Question 15

Changes to your marital status can affect the validity of your will.

Accepted Answer

A) True 
 B)False

Question 16

Estate planning involves

Accepted Answer

A)   handling your property while you are alive.
B)   dealing with what happens to your property after your death.
C)   your family's financial security in the event of your death.
D)   your family's financial security in the event of your spouse's death.
E)   handling your property while you are alive; planning how your property will be distributed after your death; and planning your family's financial security in the event of your death or your spouse's death are all part of estate planning.F) A) and B)
G) A) and C)

Question 17

In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?

Accepted Answer

A)   tenancy by default
B)   tenancy by the entirety
C)   tenancy in common
D)   joint tenancy
E)   tenants by birthF) B) and E)
G) B) and C) C

Question 18

A codicil is a document that explains,adds,or deletes provisions in your existing will.

Accepted Answer

A) True 
 B)False

Question 19

A formal will leaves one half of your adjusted gross estate to your spouse.

Accepted Answer

A) True 
 B)False

Question 20

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)   postnuptial agreement.
E)   marital share will.F) B) and C)
G) C) and D)

Exam 15: Daily Spending Diary

The creator of the trust is called the settlor or grantor.

Correct AnswerverifiedShow Answer

In estate planning,if you are married:

Correct AnswerverifiedShow Answer

Which of the following is not a potential tax that may be incurred at death?

Correct AnswerverifiedShow Answer

Estate planning is not a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Correct AnswerverifiedShow Answer

A handwritten will is called a(n) :

Correct AnswerverifiedShow Answer

Which of the following statements is correct regarding wills?

Correct AnswerverifiedShow Answer

A trust is a legal arrangement through with a trustee holds your assets for your benefit or that of your beneficiaries.

Correct AnswerverifiedTrue

Estate planning is useful only to rich and elderly people.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

A spousal trust can be classified as either an inter vivos trust or a testamentary trust.

Correct AnswerverifiedShow Answer

A will is a way to transfer your property according to your wishes after you die.

Correct AnswerverifiedShow Answer

It is always easy to plan for your family's financial security in the event of your death.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It is not necessary for every adult to have a written will.

Correct AnswerverifiedShow Answer

Changes to your marital status can affect the validity of your will.

Correct AnswerverifiedShow Answer

Estate planning involves

Correct AnswerverifiedShow Answer

In what type of ownership is each individual considered to own a proportionate share for tax purposes with only your share being included in your estate?

Correct AnswerverifiedC

A codicil is a document that explains,adds,or deletes provisions in your existing will.

Correct AnswerverifiedShow Answer

A formal will leaves one half of your adjusted gross estate to your spouse.

Correct AnswerverifiedShow 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

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True

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A

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C

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