Question 1

A statutory will is one type of formal will.

Accepted Answer

A) True 
 B)False

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

Which of the following would be a benefit of establishing a trust?

Accepted Answer

A)   It can reduce or provide payment for estate taxes.
B)   It can allow you to avoid probate and transfer assets immediately to beneficiaries.
C)   It can free you from managing your assets, while providing you a regular income.
D)   It can ensure that your property serves a desired purpose after you die.
E)   A trust can do everything listed in the other answers.F) A) and E)
G) A) and B)

Question 4

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren.

Accepted Answer

A) True 
 B)False

Question 5

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 D)
G) A) and C)

Question 6

Which statement is not true about an ethical will?

Accepted Answer

A)   It is used to pass on your values and beliefs to your heirs.
B)   It is a legally binding document.
C)   It dispenses emotional and spiritual wealth.
D)   It requires earnest self-examination.
E)   It can be prepared without an attorney's assistance.F) A) and D)
G) A) and E)

Question 7

Most people cannot afford the expense of setting up trusts.

Accepted Answer

A) True 
 B)False

Question 8

Benjamin Barry has been named by Andie 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) All of the above
G) C) and D)

Question 9

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Accepted Answer

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

Question 10

A simple will, or I love you will, leaves everything to the spouse.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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) B) and D)
G) A) and D)

Question 13

The adjusted gross estate is equal to the gross estate minus debts and costs.

Accepted Answer

A) True 
 B)False

Question 14

Joint ownership is a good substitute for a will.

Accepted Answer

A) True 
 B)False

Question 15

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 E)
G) None of the above

Question 16

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) B) and C)
G) B) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 19

A handwritten will is called a(n) :

Accepted Answer

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

Question 20

If you die intestate, the state's law of descent and distribution becomes your will.

Accepted Answer

A) True 
 B)False

Exam 19: Estate Planning

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

If you die intestate, the state's law of descent and distribution becomes your will.

Correct AnswerverifiedShow Answer

A statutory will is one type of formal will.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A handwritten will is called a(n) :

Correct AnswerverifiedShow Answer

Which of the following would be a benefit of establishing a trust?

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

A simple will, or I love you will, leaves everything to the spouse.

Correct AnswerverifiedShow Answer

The adjusted gross estate is equal to the gross estate minus debts and costs.

Correct AnswerverifiedShow Answer

A generation-skipping trust allows people to directly leave a substantial amount of money to their grandchildren.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Joint ownership is a good substitute for a will.

Correct AnswerverifiedShow Answer

Benjamin Barry has been named by Andie 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

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a:

Correct AnswerverifiedShow Answer

Most people cannot afford the expense of setting up trusts.

Correct AnswerverifiedShow Answer

Which statement is not true about an ethical will?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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