Question 1

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Accepted Answer

A) True 
 B)False

Question 2

Which will is sufficient for most smaller estates?

Accepted Answer

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

Question 3

Most people cannot afford the expense of using trusts.

Accepted Answer

A) True 
 B)False

Question 4

A trust is a legal arrangement through which a trustee holds your assets for your benefit or that of your beneficiaries.

Accepted Answer

A) True 
 B)False

Question 5

Brenda Johnson has used a preprinted form that she got from a stationery store to create her will.What type of will has she created?

Accepted Answer

A)  Holographic
B)  Formal
C)  Statutory
D)  Casual
E)  LivingF) A) and E)
G) A) and B)

Question 6

What are some common benefits for establishing a trust?

Accepted Answer

Individual circumstances will dictate wh...

Question 7

Which of the following is a part of estate planning?

Accepted Answer

A)  Making a will
B)  Setting up a trust
C)  Accumulating funds for your future
D)  Disposing of your property at your death
E)  All of these are part of estate planning.F) B) and C)
G) A) and E)

Question 8

As of 2016,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?

Accepted Answer

A)  $5,000
B)  $14,000
C)  $15,000
D)  $20,000
E)  $25,000F) A) and E)
G) D) and E)

Question 9

Which of the following is the most practical first step in estate planning?

Accepted Answer

A)  Preparing a will
B)  Gathering military service records
C)  Obtaining court documents with legal name changes
D)  Reviewing automobile registrations
E)  Purchasing life insuranceF) A) and B)
G) B) and C)

Question 10

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

Accepted Answer

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

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would keep you from being an executor of a will?

Accepted Answer

A)  Being in the military
B)  Being 16 years of age
C)  Being unmarried
D)  Being over 65 years of age
E)  Being a family member of the deceasedF) C) and D)
G) A) and B)

Question 14

If you establish a ____________ trust,you retain the right to end the trust or change its terms during your lifetime.

Accepted Answer

A)  irrevocable
B)  revocable
C)  living
D)  self-declaration
E)  testamentaryF) B) and C)
G) B) and E)

Question 15

Community property is any property that has been acquired by only one of the spouses during the marriage,but not by gift,devise,bequest or inheritance,or,by the income therefrom.

Accepted Answer

A) True 
 B)False

Question 16

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 these things listed in the other answers.F) A) and C)
G) B) and C)

Question 17

Which of the following is a trust that pays a specified charity income from a donated asset for a set number of years and then transfers the principal to the donor's beneficiaries with reduced estate or gift taxes at the end of the term?

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 E)
G) A) and D)

Question 18

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

Accepted Answer

A)  Simple
B)  Traditional marital share
C)  Exemption trust
D)  Stated dollar amount
E)  HolographicF) C) and D)
G) None of the above

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Kate Wilson has created a will that leaves one-half of her adjusted gross estate to her husband,Matthew.What type of will has she created?

Accepted Answer

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

Exam 19: Estate Planning

Which of the following is the most practical first step in estate planning?

Correct AnswerverifiedShow Answer

Most people cannot afford the expense of using trusts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Community property is any property that has been acquired by only one of the spouses during the marriage,but not by gift,devise,bequest or inheritance,or,by the income therefrom.

Correct AnswerverifiedShow Answer

What are some common benefits for establishing a trust?

Correct AnswerverifiedIndividual circumstances will dictate wh...View AnswerShow Answer

Kate Wilson has created a will that leaves one-half of her adjusted gross estate to her husband,Matthew.What type of will has she created?

Correct AnswerverifiedShow Answer

Which of the following is a trust that pays a specified charity income from a donated asset for a set number of years and then transfers the principal to the donor's beneficiaries with reduced estate or gift taxes at the end of the term?

Correct AnswerverifiedShow Answer

You should review your will if:

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

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

Correct AnswerverifiedShow Answer

Which will is sufficient for most smaller estates?

Correct AnswerverifiedShow Answer

A trust is a legal arrangement through which a trustee holds your assets for your benefit or that of your beneficiaries.

Correct AnswerverifiedShow Answer

Life insurance may be a reasonable,feasible,and economical means of paying your estate tax.

Correct AnswerverifiedShow Answer

As of 2016,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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a part of estate planning?

Correct AnswerverifiedShow Answer

Which of the following would keep you from being an executor of a will?

Correct AnswerverifiedShow Answer

If you establish a ____________ trust,you retain the right to end the trust or change its terms during your lifetime.

Correct AnswerverifiedShow Answer

Brenda Johnson has used a preprinted form that she got from a stationery store to create her will.What type of will has she created?

Correct AnswerverifiedShow Answer

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Individual circumstances will dictate wh...
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