Estate Planning Exam 1 Sample
Questions and verified answers
Which of the following statements concerning the practice of law is correct?
A)The practice of law is defined by each state.
B)Special circumstances are sometimes given to financial planners to enable them
to draft wills, trust documents, and other legal documents.
C)Reviewing wills to ensure client goals are being addressed is considered
practicing law.
correct answer ✅
D)A licensed attorney can give anyone the right to practice law as their agent. -
A)The practice of law is defined by each state.
The first step in the estate planning process includes:
A)Meeting with the client to gather information regarding the client's assets,
family structure, current estate planning documents, and desires, as needed to
understand the client's circumstances.
B)Prioritizing the client's goals.
C)Developing a formal written estate plan.
hand, etc. - correct answer ✅
D)Identifying key areas of concern in relation to the client's plan - taxes, cash on
A)Meeting with the client to gather information
regarding the client's assets, family structure, current estate planning documents,
and desires, as needed to understand the client's circumstances.
Everyone has their own objectives with regard to estate planning. Which of the
following objectives is most important for a financial advisor to keep in mind when
counseling a client?
A)Maximize net to heirs.
B)Minimize estate tax.
,Estate Planning Exam 1 Sample
Questions and verified answers
✅
C)Minimize administrative burdens.
D)Effectively transfer assets. - correct answer D) Effectively transfer assets.
Skip does not want to write a will. It upsets him to contemplate his own death and
he simply desires to avoid the estate planning process. All of the following are
risks Skip's estate may face due to his inaction, except:
A)Skip's property transfers contrary to his wishes.
B)Skip's estate may face liquidity problems.
C)Skip's estate faces increased estate administration fees.
correct answer
debts at death.
✅
D)Skip's estate faces increased debt payments for outstanding debts at death. -
D)Skip's estate faces increased debt payments for outstanding
Hardey is a financial planner in the state of Iowa. Although he attended one year
of law school, Hardey is not a licensed attorney. Which of the following actions
would be considered the practice of law?
A)Drafting wills, trust documents, and powers of attorney.
B)Reviewing wills, trust documents, and powers of attorney.
✅
C)Directing a client to seek legal advice from a licensed attorney.
D)Acting as trustee for a client's trust. - correct answer A)Drafting wills, trust
documents, and powers of attorney.
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
,Estate Planning Exam 1 Sample
Questions and verified answers
✅
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs.
D)All of the above need estate planning. - correct answer D)All of the above
need estate planning.
Of the following, who should generally be a member of the estate planning team?
1. Attorney2. Certified Public Accountant (CPA)3. Life insurance consultant4. Loan
officer
A)1 and 2.
B)1 and 4.
✅
C)1, 2, and 3.
D) 1, 2, 3, and 4 - correct answer C)1, 2, and 3.
Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.2. The client's family may not
be provided for financially.3. The estate suffers liquidity problems at the client's
death.4. The estate may bear higher transfer costs.
A)2 only.
B)2 and 3.
✅
C)1, 3, and 4.
D)1, 2, 3, and 4. - correct answer D)1, 2, 3, and 4.
Which of the following statements concerning estate planning is correct?
1. An effective transfer occurs when a person's assets are transferred to the
person or institution intended by that person.2. An efficient transfer occurs when
transfer costs are minimized consistent with the greatest assurance of
effectiveness.
, Estate Planning Exam 1 Sample
Questions and verified answers
A)1 only.
B)2 only.
✅
C)Both statements 1 and 2.
D) Neither 1 or 2 - correct answer C)Both statements 1 and 2.
Mahogany contacts you by phone. She is 65 and has accumulated over $3,000,000
in assets. She informs you that she is not married, and wants to leave all of her
assets equally to her three adult children. She agrees to come meet with you, but
asks what she should bring. Which one of the following items would be least
important for Mahogany to bring if the topic of discussion is estate planning?
A)A copy of her will and any codicils.
B)A copy of children's birth certificates.
✅
C)A copy of life insurance policies.
D)A copy of latest bank statements. - correct answer B)A copy of children's
birth certificates.
Who on the estate planning team usually calculates the adjusted basis of assets
and addresses tax issues?
A)Licensed attorney.
B)Certified Public Accountant (CPA).
✅
C)Financial planner.
D)Trust officer. - correct answer B)Certified Public Accountant (CPA).
Yara would like to meet with you regarding her estate plan. Yara is 55-years-old,
and currently has an estate that would be subject to estate tax. Her spouse died of
lung cancer last year. Yara has three children, ages 23, 26, and 32, and one
Questions and verified answers
Which of the following statements concerning the practice of law is correct?
A)The practice of law is defined by each state.
B)Special circumstances are sometimes given to financial planners to enable them
to draft wills, trust documents, and other legal documents.
C)Reviewing wills to ensure client goals are being addressed is considered
practicing law.
correct answer ✅
D)A licensed attorney can give anyone the right to practice law as their agent. -
A)The practice of law is defined by each state.
The first step in the estate planning process includes:
A)Meeting with the client to gather information regarding the client's assets,
family structure, current estate planning documents, and desires, as needed to
understand the client's circumstances.
B)Prioritizing the client's goals.
C)Developing a formal written estate plan.
hand, etc. - correct answer ✅
D)Identifying key areas of concern in relation to the client's plan - taxes, cash on
A)Meeting with the client to gather information
regarding the client's assets, family structure, current estate planning documents,
and desires, as needed to understand the client's circumstances.
Everyone has their own objectives with regard to estate planning. Which of the
following objectives is most important for a financial advisor to keep in mind when
counseling a client?
A)Maximize net to heirs.
B)Minimize estate tax.
,Estate Planning Exam 1 Sample
Questions and verified answers
✅
C)Minimize administrative burdens.
D)Effectively transfer assets. - correct answer D) Effectively transfer assets.
Skip does not want to write a will. It upsets him to contemplate his own death and
he simply desires to avoid the estate planning process. All of the following are
risks Skip's estate may face due to his inaction, except:
A)Skip's property transfers contrary to his wishes.
B)Skip's estate may face liquidity problems.
C)Skip's estate faces increased estate administration fees.
correct answer
debts at death.
✅
D)Skip's estate faces increased debt payments for outstanding debts at death. -
D)Skip's estate faces increased debt payments for outstanding
Hardey is a financial planner in the state of Iowa. Although he attended one year
of law school, Hardey is not a licensed attorney. Which of the following actions
would be considered the practice of law?
A)Drafting wills, trust documents, and powers of attorney.
B)Reviewing wills, trust documents, and powers of attorney.
✅
C)Directing a client to seek legal advice from a licensed attorney.
D)Acting as trustee for a client's trust. - correct answer A)Drafting wills, trust
documents, and powers of attorney.
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
,Estate Planning Exam 1 Sample
Questions and verified answers
✅
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs.
D)All of the above need estate planning. - correct answer D)All of the above
need estate planning.
Of the following, who should generally be a member of the estate planning team?
1. Attorney2. Certified Public Accountant (CPA)3. Life insurance consultant4. Loan
officer
A)1 and 2.
B)1 and 4.
✅
C)1, 2, and 3.
D) 1, 2, 3, and 4 - correct answer C)1, 2, and 3.
Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.2. The client's family may not
be provided for financially.3. The estate suffers liquidity problems at the client's
death.4. The estate may bear higher transfer costs.
A)2 only.
B)2 and 3.
✅
C)1, 3, and 4.
D)1, 2, 3, and 4. - correct answer D)1, 2, 3, and 4.
Which of the following statements concerning estate planning is correct?
1. An effective transfer occurs when a person's assets are transferred to the
person or institution intended by that person.2. An efficient transfer occurs when
transfer costs are minimized consistent with the greatest assurance of
effectiveness.
, Estate Planning Exam 1 Sample
Questions and verified answers
A)1 only.
B)2 only.
✅
C)Both statements 1 and 2.
D) Neither 1 or 2 - correct answer C)Both statements 1 and 2.
Mahogany contacts you by phone. She is 65 and has accumulated over $3,000,000
in assets. She informs you that she is not married, and wants to leave all of her
assets equally to her three adult children. She agrees to come meet with you, but
asks what she should bring. Which one of the following items would be least
important for Mahogany to bring if the topic of discussion is estate planning?
A)A copy of her will and any codicils.
B)A copy of children's birth certificates.
✅
C)A copy of life insurance policies.
D)A copy of latest bank statements. - correct answer B)A copy of children's
birth certificates.
Who on the estate planning team usually calculates the adjusted basis of assets
and addresses tax issues?
A)Licensed attorney.
B)Certified Public Accountant (CPA).
✅
C)Financial planner.
D)Trust officer. - correct answer B)Certified Public Accountant (CPA).
Yara would like to meet with you regarding her estate plan. Yara is 55-years-old,
and currently has an estate that would be subject to estate tax. Her spouse died of
lung cancer last year. Yara has three children, ages 23, 26, and 32, and one
