ESTATE PLANNING FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ What is a power of attorney (POA)?.
Answer: A document authorizing an agent to act for a principal.
◍ What is testate?.
Answer: Dying with a valid will.
◍ Effective Transfers.
Answer: Decedent's assets are transferred to person or institution based on
decedent's wishes.
◍ What is a self-proving clause?.
Answer: Notarized statement eliminating need for witness testimony
◍ Limitations of a Will.
Answer: Disinherited parties can contest a will.
◍ Efficient Transfers.
Answer: Minimized transfer cost and time with greatest assurance of
effectiveness.
◍ What are the core estate planning documents?.
Answer: WillLetter of instructionPower of attorney (property)Durable
power of attorney for health careLiving will / advance directiveDo Not
Resuscitate (DNR
◍ Federal Estate Tax.
Answer: Doesn't apply to everyone but applies large when it does.
◍ Anti-lapse Statutes.
Answer: Regarding gifts to friends/ distant relatives that predecease.
, ◍ What is the guardianship clause?.
Answer: Names guardians for minor children.
◍ Probate Process.
Answer: Legal proceeding that serves to prove validity of existing wills,
supervise distribution of decedent's assets to heirs, and protect creditors.
◍ What is a living will?.
Answer: A legal document stating life-sustaining treatment preferences.
◍ Mutual or Reciprocal Will.
Answer: Usually spouses drawing up identical wills.
◍ What is intestacy?.
Answer: Dying without a valid will or with incomplete distribution
◍ Escheat.
Answer: Reversion of an heirless, intestate decedent's property to the state.
◍ Executor.
Answer: Used in wills.
◍ ATRA 2012.
Answer: Made 2010 legislation permanent.
◍ Self-proving Clause.
Answer: Notary signs a declaration that he witnessed testator and witnesses
sign.
◍ Current Marginal Rate.
Answer: 40% for estate, gift, and GST taxes.
◍ Advantage of a Will.
Answer: Decedent selects executor.
◍ Contingent Legatee Clause.
Answer: Testator determines how property is distributed if legatee
predeceases.
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ What is a power of attorney (POA)?.
Answer: A document authorizing an agent to act for a principal.
◍ What is testate?.
Answer: Dying with a valid will.
◍ Effective Transfers.
Answer: Decedent's assets are transferred to person or institution based on
decedent's wishes.
◍ What is a self-proving clause?.
Answer: Notarized statement eliminating need for witness testimony
◍ Limitations of a Will.
Answer: Disinherited parties can contest a will.
◍ Efficient Transfers.
Answer: Minimized transfer cost and time with greatest assurance of
effectiveness.
◍ What are the core estate planning documents?.
Answer: WillLetter of instructionPower of attorney (property)Durable
power of attorney for health careLiving will / advance directiveDo Not
Resuscitate (DNR
◍ Federal Estate Tax.
Answer: Doesn't apply to everyone but applies large when it does.
◍ Anti-lapse Statutes.
Answer: Regarding gifts to friends/ distant relatives that predecease.
, ◍ What is the guardianship clause?.
Answer: Names guardians for minor children.
◍ Probate Process.
Answer: Legal proceeding that serves to prove validity of existing wills,
supervise distribution of decedent's assets to heirs, and protect creditors.
◍ What is a living will?.
Answer: A legal document stating life-sustaining treatment preferences.
◍ Mutual or Reciprocal Will.
Answer: Usually spouses drawing up identical wills.
◍ What is intestacy?.
Answer: Dying without a valid will or with incomplete distribution
◍ Escheat.
Answer: Reversion of an heirless, intestate decedent's property to the state.
◍ Executor.
Answer: Used in wills.
◍ ATRA 2012.
Answer: Made 2010 legislation permanent.
◍ Self-proving Clause.
Answer: Notary signs a declaration that he witnessed testator and witnesses
sign.
◍ Current Marginal Rate.
Answer: 40% for estate, gift, and GST taxes.
◍ Advantage of a Will.
Answer: Decedent selects executor.
◍ Contingent Legatee Clause.
Answer: Testator determines how property is distributed if legatee
predeceases.
