Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Your executor can be which of the following:

Accepted Answer

A)  a family member.
B)  a friend.
C)  an attorney.
D)  an accountant.
E)  Your executor can be any of these.F) C) and D)
G) A) and B)

Question 3

What are the federal and state tax considerations in estate planning?

Accepted Answer

The tax aspects of estate planning have ...

Question 4

Benjamin Wiley is married and has assets totaling $7 million.What type of will would most likely result in the lowest overall amount of federal estate taxes? Assume the exemption amount is $3 million.

Accepted Answer

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

Question 5

The cost of preparing a will varies from place to place.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the creator of a trust?

Accepted Answer

A)  Estate
B)  Trustee
C)  Grantor
D)  Beneficiary
E)  SurvivorF) A) and D)
G) B) and D)

Question 7

A standard will costs:

Accepted Answer

A)  $200.
B)  between $200 and $300.
C)  $300.
D)  between $300 and $600.
E)  $600.F) D) and E)
G) All of the above

Question 8

Which one of the following wills automatically leaves one-half of your adjusted gross estate to your spouse?

Accepted Answer

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

Question 9

Another name for an executor is an executrix.

Accepted Answer

A) True 
 B)False

Question 10

Making any changes on the face of your will can invalidate it.

Accepted Answer

A) True 
 B)False

Question 11

A person who will follow your instructions specified in your will is called a:

Accepted Answer

A)  beneficiary.
B)  trustor.
C)  witness.
D)  executor.
E)  codicil.F) C) and D)
G) A) and D)

Question 12

A surgeon,who will soon finish paying off college loans,might want to set up a:

Accepted Answer

A)  credit-shelter trust.
B)  marital-deduction trust.
C)  living trust.
D)  inter vivos trust.
E)  disclaimer trust.F) A) and B)
G) None of the above

Question 13

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Accepted Answer

A)  Letter of last instruction
B)  Durable power of attorney
C)  Will
D)  Revocable trust
E)  Irrevocable trustF) B) and D)
G) A) and B)

Question 14

A living trust avoids probate at your death.

Accepted Answer

A) True 
 B)False

Question 15

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Accepted Answer

A)  Simple
B)  Traditional marital share
C)  Exemption trust
D)  Stated dollar amount
E)  A/B trustF) All of the above
G) D) and E)

Question 16

Your estate consists of everything you own,including interests in trusts and powers of appointment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a true statement about a holographic will?

Accepted Answer

A)  It is handwritten.
B)  It should be dated in your own handwriting.
C)  It is always prepared by an attorney.
D)  It should be signed in your own handwriting.
E)  Some states may not recognize it.F) A) and B)
G) All of the above

Question 18

A will is:

Accepted Answer

A)  a way to transfer your property according to your wishes after you die.
B)  a synonym for a prenuptial agreement.
C)  a legal document authorizing someone to act on your behalf.
D)  a synonym for a letter of last instruction.
E)  a legal arrangement through which your assets are held by someone else.F) A) and B)
G) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Perhaps the most popular form of marital trust is the Q-TIP trust.

Accepted Answer

A) True 
 B)False

Exam 19: Estate Planning

The cost of preparing a will varies from place to place.

Correct AnswerverifiedShow Answer

Which one of the following wills automatically leaves one-half of your adjusted gross estate to your spouse?

Correct AnswerverifiedShow Answer

A person who will follow your instructions specified in your will is called a:

Correct AnswerverifiedShow Answer

Benjamin Wiley is married and has assets totaling $7 million.What type of will would most likely result in the lowest overall amount of federal estate taxes? Assume the exemption amount is $3 million.

Correct AnswerverifiedShow Answer

What are the federal and state tax considerations in estate planning?

Correct AnswerverifiedThe tax aspects of estate planning have ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

George Smith worries that his deteriorating health is going to make him incapacitated and unable to conduct his personal affairs.He wants to grant his nephew,Brandon Smith,the ability to act on his behalf.To do this,what document would he most likely need?

Correct AnswerverifiedShow Answer

Which of the following is not a true statement about a holographic will?

Correct AnswerverifiedShow Answer

A surgeon,who will soon finish paying off college loans,might want to set up a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your estate consists of everything you own,including interests in trusts and powers of appointment.

Correct AnswerverifiedShow Answer

A living trust avoids probate at your death.

Correct AnswerverifiedShow Answer

Perhaps the most popular form of marital trust is the Q-TIP trust.

Correct AnswerverifiedShow Answer

Your executor can be which of the following:

Correct AnswerverifiedShow Answer

Making any changes on the face of your will can invalidate it.

Correct AnswerverifiedShow Answer

Which of the following is the creator of a trust?

Correct AnswerverifiedShow Answer

Which type of will allows you to pass to your spouse any amount that satisfies your family objective?

Correct AnswerverifiedShow Answer

Another name for an executor is an executrix.

Correct AnswerverifiedShow Answer

A will is:

Correct AnswerverifiedShow Answer

A standard will costs:

Correct AnswerverifiedShow Answer

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The tax aspects of estate planning have ...
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