Question 1

To determine your estate's net worth,you would

Accepted Answer

A)   add the amount of your estate's assets to the amount of your estate's liabilities.
B)   add the amount of your estate's accounts receivable to the amount of your estate's assets.
C)   subtract the amount of your estate's assets from the amount of your estate's liabilities.
D)   subtract the amount of your estate's liabilities from the amount of your estate's assets.
E)   ask your lawyer the amount of your estate's worth and deduct it from the amount of your estate's market value.

Question 2

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

Accepted Answer

A)   There may be a prior conflicting will.
B)   Multiple wills make a mess out of the probate process.
C)   The probate process will slow down tremendously.
D)   It could be many years before the heirs receive their inheritance.
E)   All of the above

Question 3

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

Accepted Answer

A)   sprinkling
B)   family
C)   Q-TIP
D)   revocable

Question 4

You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die,as well as determining decision-making authority should you be physically or mentally impaired.

Accepted Answer

A)   estate planning
B)   retirement planning
C)   unified planning
D)   death establishment
E)   None of the above is correct.

Question 5

What steps would you take in the estate planning process?

Accepted Answer

1. Determine what your estate is worth.
...

Question 6

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Accepted Answer

A) True 
 B)False

Question 7

A ________ provides a directive to a physician that allows you to state your wishes regarding medical treatment in the event of a terminal illness or injury that renders you unable to make decisions regarding life support or other medical treatments.

Accepted Answer

A)   letter of last instructions
B)   revocable will
C)   living will
D)   termination letter
E)   none of the above

Question 8

A durable power of attorney means that the attorney who wrote the will for you is your legal guardian in case you become incapacitated and can't make decisions yourself.

Accepted Answer

A) True 
 B)False

Question 9

During the lifetime of Jack and his wife,they acquired assets individually and as members of former marriages.During their marriage,they acquired more joint property,but his wife left all of her estate to her children.Upon his wife's death,Jack would have received the other half of their

Accepted Answer

A)   property owned as joint tenants with right of survivorship.
B)   community property, if residents of a community property state.
C)   property owned as tenants by the entirety.
D)   all of the above.
E)   only A and C.

Question 10

Under ________,ownership passes directly on to the surviving owner or owners,bypassing the will.With ________,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Accepted Answer

A)   tenancy in common, community property
B)   tenancy in common, tenancy by the entirety
C)   joint tenancy with the right of survivorship, tenancy in common
D)   joint tenancy, the right of survivorship
E)   tenancy in the entirety, uncommon tenancy

Question 11

In some states,property that is acquired during a marriage is referred to as ________ and upon the death of either spouse,his/her half is distributed according to the will,or if intestate,according to state law.

Accepted Answer

A)   ownership property
B)   community property
C)   marriage assets
D)   common assets
E)   none of the above

Question 12

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2014?

Accepted Answer

A)   $14,000 per year
B)   $42,000 per year
C)   $54,000 per year
D)   $84,000 per year

Question 13

The unified tax credit

Accepted Answer

A)   Allows individuals to give $14,000 tax-free each year to as many people as they like.
B)   Ensures that almost half of any amount that you pass on beyond the first $3.5 million of an estate will be lost in taxes.
C)   Lets money be passed down from a grandparent to a grandchild tax-free.
D)   Essentially nullifies the taxes on the first $5.34 million of an estate.

Question 14

An attestation and witness clause is an attachment to a will that alters or amends a portion of the will signed in front of two witnesses.

Accepted Answer

A) True 
 B)False

Question 15

Give five good reasons to have a will.

Accepted Answer

1. to have control over the guardianship...

Question 16

Make a list of ways to avoid probate.

Accepted Answer

1. Establish joint ownership.
...

Question 17

Which of the following is/are a typical cash need(s) of one's estate?

Accepted Answer

A)   Funeral expenses
B)   Legal fees
C)   Outstanding debt
D)   Estate and inheritance taxes
E)   All of the above

Question 18

The first step in estate planning is to determine the value of your estate.

Accepted Answer

A) True 
 B)False

Question 19

List some common reasons people use trusts.

Accepted Answer

Trusts avoid probate.
Compared to wills,...

Question 20

Madonna is a famous singer;as such,she may select to settle her estate through a trust because of which reason(s) ?

Accepted Answer

A)   Trusts are harder to challenge.
B)   Trusts reduce estate taxes.
C)   Trusts provide confidentiality.
D)   Trusts allow for professional management.
E)   All of the above

Exam 16: Estate Planning: Saving Your Heirs Money and Headaches

During the lifetime of Jack and his wife,they acquired assets individually and as members of former marriages.During their marriage,they acquired more joint property,but his wife left all of her estate to her children.Upon his wife's death,Jack would have received the other half of their

Correct AnswerverifiedShow Answer

Under ________,ownership passes directly on to the surviving owner or owners,bypassing the will.With ________,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Correct AnswerverifiedShow Answer

The unified tax credit

Correct AnswerverifiedShow Answer

Make a list of ways to avoid probate.

Correct Answerverified1. Establish joint ownership....View AnswerShow Answer

You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die,as well as determining decision-making authority should you be physically or mentally impaired.

Correct AnswerverifiedShow Answer

The first step in estate planning is to determine the value of your estate.

Correct AnswerverifiedShow Answer

An attestation and witness clause is an attachment to a will that alters or amends a portion of the will signed in front of two witnesses.

Correct AnswerverifiedShow Answer

Through joint tenancy in common,George was able to transfer his share of his assets in a company he owns with his best friend to his son instead of to his best friend.

Correct AnswerverifiedShow Answer

Give five good reasons to have a will.

Correct Answerverified1. to have control over the guardianship...View AnswerShow Answer

In some states,property that is acquired during a marriage is referred to as ________ and upon the death of either spouse,his/her half is distributed according to the will,or if intestate,according to state law.

Correct AnswerverifiedShow Answer

List some common reasons people use trusts.

Correct AnswerverifiedTrusts avoid probate.Compared to wills,...View AnswerShow Answer

Herbert's will is missing the section revoking any earlier wills.A young lawyer prepared the will and made this oversight.What dangers are present because of this omission?

Correct AnswerverifiedShow Answer

A durable power of attorney means that the attorney who wrote the will for you is your legal guardian in case you become incapacitated and can't make decisions yourself.

Correct AnswerverifiedShow Answer

Which of the following is/are a typical cash need(s) of one's estate?

Correct AnswerverifiedShow Answer

The purpose of a ________ trust is to reduce estate tax liability when one spouse predeceases the other.

Correct AnswerverifiedShow Answer

You and your spouse wish to give each of your three grandchildren a yearly tax-free gift from your estate.If you give each of your three grandchildren the maximum amount allowed by law,what is the total amount that you as a couple would pay out in gifts in 2014?

Correct AnswerverifiedShow Answer

A ________ provides a directive to a physician that allows you to state your wishes regarding medical treatment in the event of a terminal illness or injury that renders you unable to make decisions regarding life support or other medical treatments.

Correct AnswerverifiedShow Answer

Madonna is a famous singer;as such,she may select to settle her estate through a trust because of which reason(s) ?

Correct AnswerverifiedShow Answer

What steps would you take in the estate planning process?

Correct Answerverified1. Determine what your estate is worth....View AnswerShow Answer

To determine your estate's net worth,you would

Correct AnswerverifiedShow Answer

Correct Answer
verified

Under ,ownership passes directly on to the surviving owner or owners,bypassing the will.With ,when one spouse dies assets become part of the deceased's estate and are distributed through the will.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. Establish joint ownership.
...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. to have control over the guardianship...
View Answer

Correct Answer
verified

Correct Answer
verified
Trusts avoid probate.
Compared to wills,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
1. Determine what your estate is worth.
...
View Answer

Correct Answer
verified