Question 1

A guardian is a person or an institution that holds property for the benefit of someone else.

Accepted Answer

A) True 
 B)False

Question 2

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.

Question 3

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

Accepted Answer

A)  building your estate through savings,investments,and insurance.
B)  transferring your estate in the manner you have specified.
C)  deciding who is going to get what.
D)  evaluating your assets and liabilities.
E)  planning for the period right after you diE.

Question 4

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A)  estate
B)  will
C)  trust
D)  probate
E)  terms of distribution

Question 6

What are some common reasons for setting up a trust?

Accepted Answer

Setting up a trust can serve a variety o...

Question 7

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

Accepted Answer

A)  estate income
B)  trust income
C)  inheritance
D)  gift
E)  estate

Question 8

You should review your will if:

Accepted Answer

A)  you move to a different state.
B)  you have sold property mentioned in the will.
C)  the size and composition of your estate has changed.
D)  you have married,divorced,or remarrieD.
E)  you have done any of the things listed in the other answers.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A letter of last instruction can provide your heirs with important information.

Accepted Answer

A) True 
 B)False

Question 11

Which will is sufficient for most smaller estates?

Accepted Answer

A)  simple
B)  traditional marital share
C)  exemption trust
D)  stated dollar amount
E)  living

Question 12

One of the advantages of a living trust is that property held in it avoids probate at your death.

Accepted Answer

A) True 
 B)False

Question 13

Generally,the cost of writing a will is more than that for writing a living trust.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  Estate planning is only for the rich.
B)  It is always easy to plan for your family's financial security in the event of your death.
C)  Most people provide a lifetime of income for those who will survive them.
D)  Most people give meticulous attention to estate planning.
E)  Many people do little to financially prepare for death.

Question 17

If you die intestate,the state's law of descent and distribution becomes your will.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following statements is correct?

Accepted Answer

A)  Estate planning frequently involves the use of life insurance.
B)  Most people do extensive estate planning.
C)  Most people think they will live forever.
D)  People should not worry about estate planning until they are age 65.
E)  Estate planning is really only necessary if you are wealthy.

Question 19

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

Exam 19: Estate Planning

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

Correct Answer
verified

Which will is sufficient for most smaller estates?

Correct Answer
verified

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

Correct Answer
verified

A guardian is a person or an institution that holds property for the benefit of someone else.

Correct Answer
verified

If you die without a valid will:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

You should review your will if:

Correct Answer
verified

Which one of the following statements is correct?

Correct Answer
verified

One of the advantages of a living trust is that property held in it avoids probate at your death.

Correct Answer
verified

Generally,the cost of writing a will is more than that for writing a living trust.

Correct Answer
verified

What are some common reasons for setting up a trust?

Correct Answer
Answered by ExamLex AI
Setting up a trust can serve a variety o...
View Answer

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

Correct Answer
verified

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

Correct Answer
verified

If you die intestate,the state's law of descent and distribution becomes your will.

Correct Answer
verified

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Correct Answer
verified

A letter of last instruction can provide your heirs with important information.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Estate Planning

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

Correct AnswerverifiedShow Answer

Which will is sufficient for most smaller estates?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A guardian is a person or an institution that holds property for the benefit of someone else.

Correct AnswerverifiedShow Answer

If you die without a valid will:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

You should review your will if:

Correct AnswerverifiedShow Answer

Which one of the following statements is correct?

Correct AnswerverifiedShow Answer

One of the advantages of a living trust is that property held in it avoids probate at your death.

Correct AnswerverifiedShow Answer

Generally,the cost of writing a will is more than that for writing a living trust.

Correct AnswerverifiedShow Answer

What are some common reasons for setting up a trust?

Correct AnswerAnswered by ExamLex AISetting up a trust can serve a variety o...View AnswerShow Answer

A living will provides for your wishes to be followed if you become so physically or mentally disabled that you are unable to act on your own behalf.

Correct AnswerverifiedShow Answer

A state tax levied on the right of an heir to receive all or part of the estate and life insurance proceeds of a deceased person is called a(n) ____________ tax.

Correct AnswerverifiedShow Answer

If you die intestate,the state's law of descent and distribution becomes your will.

Correct AnswerverifiedShow Answer

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Correct AnswerverifiedShow Answer

A letter of last instruction can provide your heirs with important information.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Setting up a trust can serve a variety o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified