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Exam 19: Estate Planning

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Question 21

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A simple document stating that anything you may have neglected to place in your trust during your lifetime should be placed in it at your death is called a:

A) letter of last instruction.
B) ethical will.
C) prenuptial agreement.
D) codicil.
E) pourover will.

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Question 22

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A(n) ____________ trust is a property management arrangement that you establish while you are alive.

A) guardian
B) trustee
C) living
D) power of attorney
E) estate

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Question 23

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

A person or institution that holds or generally manages property for the benefit of someone else under a trust agreement is called a(n) :

If only a few changes are needed in your will, adding a codicil may be the best choice.

A credit-shelter trust is perhaps the most common estate-planning trust.

The state law sets the fees for executors, whether professionals or friends.

A prenuptial agreement is a documentary agreement between spouses after marriage.

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?

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?

Which one of the following wills is called an "I love you" will?

Which type of will involves serious risks of invalidity and may not reflect the provisions of current law?

Estate planning is a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Under what type of will is half of your estate taxed at your death and half at your spouse's death?

Which one of the following statements is correct regarding wills?

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 most likely made?

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

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

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

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