Estate Planning Final Exam Questions
and verified answers
Effie and Edric, a married couple who live in Kansas, buy a house as JTWROS. Effie
pays $500,000 for the house from an inheritance she received. Effie dies six years
later when the house is valued at $800,000. Which is true?
$400,000 of the house value will be in Effie's gross estate; $400,000 of the house
value will be in Effie's probate estate.
$500,000 of the house value will be in Effie's gross estate; $0 of the house value
will be in Effie's probate estate.
$800,000 of the house value will be in Effie's gross estate; $400,000 of the house
value will be in Effie's probate estate.
will be in Effie's probate estate. - correct answer ✅
$400,000 of the house value will be in Effie's gross estate; $0 of the house value
$400,000 of the house value
will be in Effie's gross estate; $0 of the house value will be in Effie's probate estate.
Enid, who lives in Kansas, is on her deathbed when she announces to her two
children and a nurse that she wants her youngest granddaughter to receive her
diamond engagement ring.
1. The two children must sign a statement agreeing to Enid's wishes.
2. This declaration is not valid.
,Estate Planning Final Exam Questions
and verified answers
3. The nurse must write this statement down and have Enid sign and date it to be
valid.
correct answer ✅
4. This is a nuncupative will and is valid if written down and signed by witnesses. -
4
Elon adds his son Foster to his checking account as JTWROS. The account has
$50,000. What are the tax implication at the time of the gift?
Elon has made a $30,000 gift to Foster.
Elon has made a $50,000 gift to Foster.
✅
There is no gift.
Elon has made a $25,000 gift to Foster. - correct answer There is no gift
Stocks and bonds are
real property.
intangible real property.
✅
tangible personal property.
intangible personal property. - correct answer Intangible personal property
Ewan, a journalist, was in the process of buying a new home when he was
assigned overseas to cover a breaking story. Before Ewan leaves, he calls you, his
financial planner. He wants his sister Emilia to attend the real estate closing on his
,Estate Planning Final Exam Questions
and verified answers
place, but he does not want her to represent him in other financial transactions
while he is away or when he returns home. What document does he need?
Springing nondurable power of attorney
General power of attorney
✅
Power of appointment
Durable power of attorney - correct answer Springing nondurable power of
attorney
Ed and Ebba, although not married, have been living together for several years.
Ed, who is quite wealthy, wants to leave the bulk of his estate to Ebba when he
dies. Ed anticipates that his children will contest the will. Which of the following
would ensure that Ebba will receive an asset following Ed's death?
Ed should title assets that he wants Ebba to receive as JTWROS.
Ed should write a will leaving a nominal amount to his children and the remainder
to Ebba.
✅
Ed should let the Probate Court decide.
Ed should write a will leaving everything to Ebba. - correct answer Should title
assets that he wants Ebba to receive JTWROS
Which of the following documents appoints a surrogate decision-maker for health
care?
, Estate Planning Final Exam Questions
and verified answers
General power of appointment
Durable power of attorney for health care
✅
Do not resuscitate order
Living will - correct answer Durable power of attorney for health care
Eugenia and Erwin own an apartment building as JTWROS. Eugenia paid $300,000
and Erwin paid $200,000 when they purchased the building. Eugenia dies. How
much will be included in her gross estate if the building is valued at $1 million
when she died?
$500,000
$600,000
✅
$300,000
$1 million - correct answer 600,000. When she dies its valued at what she put
in in the beginning
Which of the following is considered an advantage of the probate process?
Heirs receive property with clear title.
The probate process is less expensive than other transfer mechanisms.s.than
other transfer mechanisms.
Information that is filed with the court remains private.
and verified answers
Effie and Edric, a married couple who live in Kansas, buy a house as JTWROS. Effie
pays $500,000 for the house from an inheritance she received. Effie dies six years
later when the house is valued at $800,000. Which is true?
$400,000 of the house value will be in Effie's gross estate; $400,000 of the house
value will be in Effie's probate estate.
$500,000 of the house value will be in Effie's gross estate; $0 of the house value
will be in Effie's probate estate.
$800,000 of the house value will be in Effie's gross estate; $400,000 of the house
value will be in Effie's probate estate.
will be in Effie's probate estate. - correct answer ✅
$400,000 of the house value will be in Effie's gross estate; $0 of the house value
$400,000 of the house value
will be in Effie's gross estate; $0 of the house value will be in Effie's probate estate.
Enid, who lives in Kansas, is on her deathbed when she announces to her two
children and a nurse that she wants her youngest granddaughter to receive her
diamond engagement ring.
1. The two children must sign a statement agreeing to Enid's wishes.
2. This declaration is not valid.
,Estate Planning Final Exam Questions
and verified answers
3. The nurse must write this statement down and have Enid sign and date it to be
valid.
correct answer ✅
4. This is a nuncupative will and is valid if written down and signed by witnesses. -
4
Elon adds his son Foster to his checking account as JTWROS. The account has
$50,000. What are the tax implication at the time of the gift?
Elon has made a $30,000 gift to Foster.
Elon has made a $50,000 gift to Foster.
✅
There is no gift.
Elon has made a $25,000 gift to Foster. - correct answer There is no gift
Stocks and bonds are
real property.
intangible real property.
✅
tangible personal property.
intangible personal property. - correct answer Intangible personal property
Ewan, a journalist, was in the process of buying a new home when he was
assigned overseas to cover a breaking story. Before Ewan leaves, he calls you, his
financial planner. He wants his sister Emilia to attend the real estate closing on his
,Estate Planning Final Exam Questions
and verified answers
place, but he does not want her to represent him in other financial transactions
while he is away or when he returns home. What document does he need?
Springing nondurable power of attorney
General power of attorney
✅
Power of appointment
Durable power of attorney - correct answer Springing nondurable power of
attorney
Ed and Ebba, although not married, have been living together for several years.
Ed, who is quite wealthy, wants to leave the bulk of his estate to Ebba when he
dies. Ed anticipates that his children will contest the will. Which of the following
would ensure that Ebba will receive an asset following Ed's death?
Ed should title assets that he wants Ebba to receive as JTWROS.
Ed should write a will leaving a nominal amount to his children and the remainder
to Ebba.
✅
Ed should let the Probate Court decide.
Ed should write a will leaving everything to Ebba. - correct answer Should title
assets that he wants Ebba to receive JTWROS
Which of the following documents appoints a surrogate decision-maker for health
care?
, Estate Planning Final Exam Questions
and verified answers
General power of appointment
Durable power of attorney for health care
✅
Do not resuscitate order
Living will - correct answer Durable power of attorney for health care
Eugenia and Erwin own an apartment building as JTWROS. Eugenia paid $300,000
and Erwin paid $200,000 when they purchased the building. Eugenia dies. How
much will be included in her gross estate if the building is valued at $1 million
when she died?
$500,000
$600,000
✅
$300,000
$1 million - correct answer 600,000. When she dies its valued at what she put
in in the beginning
Which of the following is considered an advantage of the probate process?
Heirs receive property with clear title.
The probate process is less expensive than other transfer mechanisms.s.than
other transfer mechanisms.
Information that is filed with the court remains private.
