Question 1

Gerald Wilkins owns a home worth $250,000,a car worth $15,000,various investments worth $600,000 and other personal assets worth $25,000.What are these things to Gerald?

Accepted Answer

A)  Estate
B)  Will
C)  Trust
D)  Probate
E)  LiabilitiesF) A) and B)
G) B) and E)

Question 2

George Wade has been selected to receive the assets of his brother Kyle in the event of Kyle's death.What is George?

Accepted Answer

A)  Executor
B)  Trustee
C)  Guardian
D)  Beneficiary
E)  AgentF) A) and C)
G) A) and B)

Question 3

A credit-shelter trust is also known as a bypass trust,a "residuary" trust,an A/B trust,an exemption equivalent trust,or a family trust.

Accepted Answer

A) True 
 B)False

Question 4

Benjamin Barry has been named by Katie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Accepted Answer

A)  Executor
B)  Trustee
C)  Guardian
D)  Beneficiary
E)  AgentF) A) and C)
G) B) and D)

Question 5

Making any changes on the face of a will,that has been signed and witnessed,can invalidate it.

Accepted Answer

A) True 
 B)False

Question 6

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) B) and C)
G) A) and C)

Question 7

It is unnecessary to review and modify your will when you divorce or remarry.

Accepted Answer

A) True 
 B)False

Question 8

What is the maximum yearly amount that an individual can give as a gift without incurring gift tax liability or having to report the gift to the IRS according to the Tax Cuts and Jobs Act?

Accepted Answer

A)  $5,000
B)  $15,000
C)  $17,000
D)  $20,000
E)  $25,000F) B) and E)
G) C) and D)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which statement is not true about a letter of last instruction?

Accepted Answer

A)  It is also known as after-death wishes.
B)  It should contain details about your funeral arrangements.
C)  It should contain names of people to be notified of your death.
D)  It is legally enforceable in all states.
E)  It should contain information about the location of your bank accounts.F) B) and E)
G) A) and D)

Question 11

How many months after your death is the federal estate tax due and payable in cash?

Accepted Answer

A)  3
B)  6
C)  9
D)  12
E)  15F) C) and E)
G) A) and C)

Question 12

Which one of the following may be either typed or on a preprinted form and is usually prepared with an attorney's assistance?

Accepted Answer

A)  Medical directives
B)  Holographic will
C)  Formal will
D)  Letter of last instruction
E)  Living willF) D) and E)
G) C) and E)

Question 13

LIMRA International,a financial services research organization,provides information about estate planning to survivors in the form of a booklet.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

Accepted Answer

A)  Grantor retained annuity trust
B)  Life insurance trust
C)  Marital-deduction trust
D)  Self-declaration trust
E)  Charitable lead trustF) A) and B)
G) All of the above

Question 15

Estate planning has two parts.The second part of estate planning consists of:

Accepted Answer

A)  building your estate through working.
B)  transferring your estate,at your death,in the manner you have specified.
C)  deciding who should be your attorney.
D)  evaluating your assets and liabilities.
E)  buying life insurance.F) D) and E)
G) B) and C)

Question 16

Unmarried couples face formidable retirement and estate planning challenges.

Accepted Answer

A) True 
 B)False

Question 17

Most people cannot afford the expense of using trusts.

Accepted Answer

A) True 
 B)False

Question 18

Another name for an executor is an executrix.

Accepted Answer

A) True 
 B)False

Question 19

A legal document authorizing someone to act on your behalf,if you become ill or incapacitated,is called a:

Accepted Answer

A)  codicil.
B)  rider.
C)  durable power of attorney.
D)  trustor.
E)  proxy.F) A) and E)
G) B) and D)

Question 20

Matthew Miller has created a will and left everything to his wife Kate.What type of will has he created?

Accepted Answer

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

Exam 19: Estate Planning

Most people cannot afford the expense of using trusts.

Correct AnswerverifiedShow Answer

How many months after your death is the federal estate tax due and payable in cash?

Correct AnswerverifiedShow Answer

Which one of the following may be either typed or on a preprinted form and is usually prepared with an attorney's assistance?

Correct AnswerverifiedShow Answer

A legal document authorizing someone to act on your behalf,if you become ill or incapacitated,is called a:

Correct AnswerverifiedShow Answer

Another name for an executor is an executrix.

Correct AnswerverifiedShow Answer

Unmarried couples face formidable retirement and estate planning challenges.

Correct AnswerverifiedShow Answer

Which of the following is a trust established while you are living and receives your life insurance benefits upon your death and administers them in an agreed-on manner?

Correct AnswerverifiedShow Answer

Which statement is not true about a letter of last instruction?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

George Wade has been selected to receive the assets of his brother Kyle in the event of Kyle's death.What is George?

Correct AnswerverifiedShow Answer

Gerald Wilkins owns a home worth $250,000,a car worth $15,000,various investments worth $600,000 and other personal assets worth $25,000.What are these things to Gerald?

Correct AnswerverifiedShow Answer

Estate planning has two parts.The second part of estate planning consists of:

Correct AnswerverifiedShow Answer

LIMRA International,a financial services research organization,provides information about estate planning to survivors in the form of a booklet.

Correct AnswerverifiedShow Answer

Matthew Miller has created a will and left everything to his wife Kate.What type of will has he created?

Correct AnswerverifiedShow Answer

Making any changes on the face of a will,that has been signed and witnessed,can invalidate it.

Correct AnswerverifiedShow Answer

Benjamin Barry has been named by Katie Anderson to follow her instructions and distribute her assets as she has designated in her will,pay any bills,and collect any money owed to her.To which position has Benjamin been named?

Correct AnswerverifiedShow Answer

It is unnecessary to review and modify your will when you divorce or remarry.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A credit-shelter trust is also known as a bypass trust,a "residuary" trust,an A/B trust,an exemption equivalent trust,or a family trust.

Correct AnswerverifiedShow Answer

What is the maximum yearly amount that an individual can give as a gift without incurring gift tax liability or having to report the gift to the IRS according to the Tax Cuts and Jobs Act?

Correct AnswerverifiedShow Answer

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