ESTATE PLANNING MIDTERM EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
What is the definition of estate planning? - ANS Planning the future management of your
health, personal responsibilities, and property
(T/F) Creditors have no right to recover money the decedent owes them from the decedent's
estate, but can collect from the legatees of the decedent's will after the estate is closed. -
ANS False
Creditors have to collect from the estate
Probate is: - ANS the process through which the state determines the control of property
owned by someone who can't speak for it- death and incapacity
Financial Planners must know how any form of ownership effects their client's: - ANS Probate
Estate
Transfer tax burden
Income tax burden, including capital gains
Joint Tenancy with Right of Survivorship is helpful to: - ANS Avoid probate
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The personal representative/administrator - ANS Takes control of the decedent's assets and
inventories and appraises them for the court
Pays the valid debts and claims of the decedent
After debts are paid, with the courts consent, distributes the rest if the estate property
according to the terms of the will or the laws of intestacy
(T/F) The court will require the personal representative to acquire a surety bond only when the
decedent has called for it in the will - ANS False
It is required unless the decedent has it does not have to be in the will.
What is the applicable exclusion amount for 2022? - ANS $12.06 million
What is consideration? - ANS the value given in return for a promise
Elements of a gift - ANS 1) Intent to make gift
2) Full competence
3) Donee must accept
4) Donee takes delivery
5) Donor parts with dominion and control
Annual Gift Tax Exclusion - ANS $16,000 (2022)
the annual amount that a donor can give to each donee that is excluded from taxable gifts
What is the maximum amount for qualified transfers 2022? - ANS There is no limit.
Qualified transfers can be used for:
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
What is the definition of estate planning? - ANS Planning the future management of your
health, personal responsibilities, and property
(T/F) Creditors have no right to recover money the decedent owes them from the decedent's
estate, but can collect from the legatees of the decedent's will after the estate is closed. -
ANS False
Creditors have to collect from the estate
Probate is: - ANS the process through which the state determines the control of property
owned by someone who can't speak for it- death and incapacity
Financial Planners must know how any form of ownership effects their client's: - ANS Probate
Estate
Transfer tax burden
Income tax burden, including capital gains
Joint Tenancy with Right of Survivorship is helpful to: - ANS Avoid probate
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The personal representative/administrator - ANS Takes control of the decedent's assets and
inventories and appraises them for the court
Pays the valid debts and claims of the decedent
After debts are paid, with the courts consent, distributes the rest if the estate property
according to the terms of the will or the laws of intestacy
(T/F) The court will require the personal representative to acquire a surety bond only when the
decedent has called for it in the will - ANS False
It is required unless the decedent has it does not have to be in the will.
What is the applicable exclusion amount for 2022? - ANS $12.06 million
What is consideration? - ANS the value given in return for a promise
Elements of a gift - ANS 1) Intent to make gift
2) Full competence
3) Donee must accept
4) Donee takes delivery
5) Donor parts with dominion and control
Annual Gift Tax Exclusion - ANS $16,000 (2022)
the annual amount that a donor can give to each donee that is excluded from taxable gifts
What is the maximum amount for qualified transfers 2022? - ANS There is no limit.
Qualified transfers can be used for:
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
