Question 1

Joseph Vu has assets worth $1,200,000.He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death.What is this legal document?

Accepted Answer

A)  estate
B)  will
C)  trust
D)  probate
E)  liabilitiesF) All of the above
G) A) and B)

Question 2

Unmarried couples face formidable retirement and estate planning challenges.

Accepted Answer

A) True 
 B)False

Question 3

Brenda Johnson has used a preprinted form that she got from the internet to create her will.However,she was unhappy with one section of the will and crossed out the parts she didn't like and hand wrote the changes she wanted.The changes that she made most likely made her will:

Accepted Answer

A)  invalid.
B)  an A/B trust.
C)  a letter of last instruction.
D)  a marital trust.
E)  an exemption trust.F) B) and D)
G) A) and B)

Question 4

With a marital-deduction trust you can leave your spouse any money that doesn't go into a credit-shelter trust.

Accepted Answer

A) True 
 B)False

Question 5

A statutory will is one type of formal will.

Accepted Answer

A) True 
 B)False

Question 6

If you establish a(n) ____________ trust,you retain the right to end the trust or change its terms.

Accepted Answer

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following statements is correct regarding wills?

Accepted Answer

A)  Only married people need a will.
B)  Only married people with dependents need a will.
C)  Only the rich with considerable estates need a will.
D)  Every adult should have a will.
E)  Only senior citizens need a will.F) A) and C)
G) A) and B)

Question 10

How do wills and trusts help in planning your estate?

Accepted Answer

The answer of How do wills and trusts help in...

Question 11

A simple will creates lower overall taxation for all individuals.

Accepted Answer

A) True 
 B)False

Question 12

An ethical will is a way to pass on your values and beliefs to your heirs.

Accepted Answer

A) True 
 B)False

Question 13

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her.What type of document would be best for her to prepare?

Accepted Answer

A)  ethical will
B)  durable power of attorney
C)  letter of last instruction
D)  codicil
E)  formal willF) A) and B)
G) B) and C)

Question 14

A federal and state tax levied on the privilege of making gifts to others is called a(n) ____________ tax.

Accepted Answer

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

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) A) and B)
G) All of the above

Question 16

A handwritten will is called a(n) :

Accepted Answer

A)  holographic.
B)  formal.
C)  statutory.
D)  exemption trust.
E)  informal.F) C) and E)
G) B) and C)

Question 17

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million.This exemption amount passes into a trust.What type of will has Will created?

Accepted Answer

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

Question 18

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Accepted Answer

A) True 
 B)False

Question 19

An estate plan is usually implemented by a will and one or more trust agreements.

Accepted Answer

A) True 
 B)False

Question 20

If you establish a(n) ____________ trust,you cannot change its terms or end it.

Accepted Answer

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

Exam 19: Estate Planning

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

Correct AnswerverifiedShow Answer

If you establish a(n) ____________ trust,you retain the right to end the trust or change its terms.

Correct AnswerverifiedShow Answer

The main advantage of the exemption trust will is that it eliminates future taxation of the exemption amount and any growth in it.

Correct AnswerverifiedShow Answer

A handwritten will is called a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An ethical will is a way to pass on your values and beliefs to your heirs.

Correct AnswerverifiedShow Answer

A federal and state tax levied on the privilege of making gifts to others is called a(n) ____________ tax.

Correct AnswerverifiedShow Answer

A statutory will is one type of formal will.

Correct AnswerverifiedShow Answer

Joseph Vu has assets worth $1,200,000.He has written a legal document that specifies that these assets be divided equally between his wife and his two sons upon his death.What is this legal document?

Correct AnswerverifiedShow Answer

Will Jones has created a will that leaves everything to his wife except an exemption amount of $2 million.This exemption amount passes into a trust.What type of will has Will created?

Correct AnswerverifiedShow Answer

With a marital-deduction trust you can leave your spouse any money that doesn't go into a credit-shelter trust.

Correct AnswerverifiedShow Answer

How do wills and trusts help in planning your estate?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following statements is correct regarding wills?

Correct AnswerverifiedShow Answer

If you establish a(n) ____________ trust,you cannot change its terms or end it.

Correct AnswerverifiedShow Answer

A simple will creates lower overall taxation for all individuals.

Correct AnswerverifiedShow Answer

Brenda Johnson has used a preprinted form that she got from the internet to create her will.However,she was unhappy with one section of the will and crossed out the parts she didn't like and hand wrote the changes she wanted.The changes that she made most likely made her will:

Correct AnswerverifiedShow Answer

An estate plan is usually implemented by a will and one or more trust agreements.

Correct AnswerverifiedShow Answer

Unmarried couples face formidable retirement and estate planning challenges.

Correct AnswerverifiedShow Answer

Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her.What type of document would be best for her to prepare?

Correct AnswerverifiedShow Answer

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