HS 330 - Fundamentals of Estate
Planning True OR False 4, 5 & 6 Exam
Questions With Correct Answers
"In choosing the right executor, the general rule of thumb is to select a
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close family member who knows the testator well. - CORRECT
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ANSWER✔✔-False - Although a close family member may be the | | | | | | | | | |
individual who best knows the testator's wishes, there are other
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important factors a person should consider when nominating an
| | | | | | | | |
executor. These factors could include whether or not the potential
| | | | | | | | | |
executor (1) has the financial and administrative acumen to be an
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executor (2) has sufficient time to carry out the duties of an executor (3)
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|has sufficient knowledge of the testator's business, family, and personal
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|matters (4) is likely to be compatible with estate beneficiaries
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A disadvantage of a living irrevocable trust is that it will pass through
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probate. - CORRECT ANSWER✔✔-False - An irrevocable inter vivos trust
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will avoid probate.
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A donor may delay the right to exercise a power of appointment until
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the donee's death. - CORRECT ANSWER✔✔-True
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, A general power of appointment allows the donee to transfer the
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property to anyone, including the donee and the creditors of the donee.
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- CORRECT ANSWER✔✔-True
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A major purpose of establishing a trust may be to provide professional
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management of the assets and control of distributions to protect the
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beneficiaries. - CORRECT ANSWER✔✔-True | | |
A process for removing and replacing trustees can be set forth in the
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trust document. - CORRECT ANSWER✔✔-True
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A revocable trust is not permitted to hold an unincorporated business
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interest. - CORRECT ANSWER✔✔-False - A revocable trust may hold a
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sole proprietorship or partnership interest. This is a business
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continuation technique that may be used to prevent the termination of
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an unincorporated business by operation of law at the death of an
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owner.
A spendthrift clause may be designed to protect the corpus of the trust
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from the creditors of a beneficiary. - CORRECT ANSWER✔✔-True
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A statement in the trust instrument as to the revocability or
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irrevocability of a trust is not necessary or desirable as state law prevails
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|- CORRECT ANSWER✔✔-False - To ensure the grantor's wishes as to the
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revocability or irrevocability of the trust, a statement specifying
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Planning True OR False 4, 5 & 6 Exam
Questions With Correct Answers
"In choosing the right executor, the general rule of thumb is to select a
| | | | | | | | | | | | | |
close family member who knows the testator well. - CORRECT
| | | | | | | | | |
ANSWER✔✔-False - Although a close family member may be the | | | | | | | | | |
individual who best knows the testator's wishes, there are other
| | | | | | | | | |
important factors a person should consider when nominating an
| | | | | | | | |
executor. These factors could include whether or not the potential
| | | | | | | | | |
executor (1) has the financial and administrative acumen to be an
| | | | | | | | | | |
executor (2) has sufficient time to carry out the duties of an executor (3)
| | | | | | | | | | | | |
|has sufficient knowledge of the testator's business, family, and personal
| | | | | | | | |
|matters (4) is likely to be compatible with estate beneficiaries
| | | | | | | | |
A disadvantage of a living irrevocable trust is that it will pass through
| | | | | | | | | | | | |
probate. - CORRECT ANSWER✔✔-False - An irrevocable inter vivos trust
| | | | | | | | | |
will avoid probate.
| |
A donor may delay the right to exercise a power of appointment until
| | | | | | | | | | | | |
the donee's death. - CORRECT ANSWER✔✔-True
| | | | |
, A general power of appointment allows the donee to transfer the
| | | | | | | | | | |
property to anyone, including the donee and the creditors of the donee.
| | | | | | | | | | |
- CORRECT ANSWER✔✔-True
| | |
A major purpose of establishing a trust may be to provide professional
| | | | | | | | | | | |
management of the assets and control of distributions to protect the
| | | | | | | | | | |
beneficiaries. - CORRECT ANSWER✔✔-True | | |
A process for removing and replacing trustees can be set forth in the
| | | | | | | | | | | | |
trust document. - CORRECT ANSWER✔✔-True
| | | |
A revocable trust is not permitted to hold an unincorporated business
| | | | | | | | | | |
interest. - CORRECT ANSWER✔✔-False - A revocable trust may hold a
| | | | | | | | | | |
sole proprietorship or partnership interest. This is a business
| | | | | | | | |
continuation technique that may be used to prevent the termination of
| | | | | | | | | | |
an unincorporated business by operation of law at the death of an
| | | | | | | | | | | |
owner.
A spendthrift clause may be designed to protect the corpus of the trust
| | | | | | | | | | | | |
from the creditors of a beneficiary. - CORRECT ANSWER✔✔-True
| | | | | | | |
A statement in the trust instrument as to the revocability or
| | | | | | | | | | |
irrevocability of a trust is not necessary or desirable as state law prevails
| | | | | | | | | | | |
|- CORRECT ANSWER✔✔-False - To ensure the grantor's wishes as to the
| | | | | | | | | | | |
revocability or irrevocability of the trust, a statement specifying
| | | | | | | | |
