Question 1

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

Accepted Answer

A)  credit-shelter trust.
B)  marital-deduction trust.
C)  living trust.
D)  inter vivos trust.
E)  disclaimer trust.F) A) and E)
G) A) and D)

Question 2

A will in which everything passes to the spouse except the exemption amount is called the exemption trust will.

Accepted Answer

A) True 
 B)False

Question 3

A living will is a good substitute for a traditional will.

Accepted Answer

A) True 
 B)False

Question 4

Most people cannot afford the expense of setting up trusts.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Gerry Legere has died without writing a will.What is the legal term for this?

Accepted Answer

A)  probate
B)  intestate
C)  testamentary
D)  statutory
E)  codicilF) A) and E)
G) A) and D) B

Question 7

James Fitzwater has created a will that leaves exactly $2 million to his wife.What type of will has James created?

Accepted Answer

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

Question 8

A simple will is sufficient for most smaller estates.

Accepted Answer

A) True 
 B)False

Question 9

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Accepted Answer

A)  tenancy by default
B)  tenancy by the entirety
C)  tenancy in common
D)  joint tenants with the right of survivorship
E)  simple tenancyF) A) and E)
G) C) and D)

Question 10

In estate planning,if you are married:

Accepted Answer

A)  you do not need a will as your spouse is entitled to all of your assets.
B)  your estate planning becomes simpler once you have children.
C)  you should let your spouse do all of your estate planning.
D)  your situation is more complex than when you were still single.
E)  your planning consists solely of naming beneficiaries for your life insurancE.F) A) and C)
G) A) and D)

Question 11

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Accepted Answer

A) True 
 B)False  True

Question 12

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often include which of the following?

Accepted Answer

A)  living will
B)  health care proxy
C)  letter of last instruction
D)  all of the other answers.
E)  durable power of attorneyF) C) and D)
G) A) and B)

Question 13

Explain what a will is and what occurs at your death if you do not have one.

Accepted Answer

The answer of Explain what a will is and what...

Question 14

A legal document authorizing someone to act on your behalf is called a:

Accepted Answer

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

Question 15

A codicil is a document that explains,adds,or deletes provisions in your existing will.

Accepted Answer

A) True 
 B)False

Question 16

George Smith worries that his deteriorating health is going to make it difficult for him to conduct his day-to-day business.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) A) and E)
G) None of the above

Question 17

A testamentary trust is a trust established by your will that becomes effective upon your death.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  holographic
B)  formal
C)  statutory
D)  casual
E)  livingF) B) and E)
G) C) and D)

Question 19

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 E)
G) C) and D)

Question 20

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n) ____________ tax.

Accepted Answer

A)  estate income
B)  trust income
C)  inheritance
D)  gift
E)  estateF) A) and B)
G) A) and C)

Exam 19: Estate Planning

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

Correct AnswerverifiedShow Answer

A will in which everything passes to the spouse except the exemption amount is called the exemption trust will.

Correct AnswerverifiedShow Answer

A living will is a good substitute for a traditional will.

Correct AnswerverifiedShow Answer

Most people cannot afford the expense of setting up trusts.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Gerry Legere has died without writing a will.What is the legal term for this?

Correct AnswerverifiedB

James Fitzwater has created a will that leaves exactly $2 million to his wife.What type of will has James created?

Correct AnswerverifiedD

A simple will is sufficient for most smaller estates.

Correct AnswerverifiedShow Answer

In what type of joint ownership may neither spouse sell the property without the consent of the other?

Correct AnswerverifiedShow Answer

In estate planning,if you are married:

Correct AnswerverifiedShow Answer

If you marry after you have made a will,you are better off drawing a new will to fit your new circumstances.

Correct AnswerverifiedTrue

Advance directives are legal documents that allow you to state what kind of health care you want if you were too ill to speak for yourself.Advance directives most often include which of the following?

Correct AnswerverifiedShow Answer

Explain what a will is and what occurs at your death if you do not have one.

Correct AnswerverifiedShow Answer

A legal document authorizing someone to act on your behalf is called a:

Correct AnswerverifiedShow Answer

A codicil is a document that explains,adds,or deletes provisions in your existing will.

Correct AnswerverifiedShow Answer

George Smith worries that his deteriorating health is going to make it difficult for him to conduct his day-to-day business.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

A testamentary trust is a trust established by your will that becomes effective upon your death.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A federal tax levied on the right of a deceased person to transmit his or her property and life insurance at death is called a(n) ____________ tax.

Correct AnswerverifiedShow Answer

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True

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