HS 330 - Estate Planning Questions With
Correct Answers
Which of the following is not an estate-planning goal?
| | | | | | | |
A)
Maximizing the gross estate | | |
B)
Minimizing transfer taxes | |
C)
Providing for liquidity at death
| | | |
D)
Fulfilling client's healthcare decisions - CORRECT ANSWER✔✔-A
| | | | | |
Although he has a vast fortune, Tricky has decided not to prepare an
| | | | | | | | | | | | |
estate plan because he believes that his surviving family members will
| | | | | | | | | | |
divide his assets appropriately. Which of the following is not a risk
| | | | | | | | | | | |
associated with failing to plan an estate?
| | | | | |
A)
Tricky's estate could incur excessive transfer taxes.
| | | | | |
B)
Tricky's favorite car may not be transferred to his ex-wife, Carla.
| | | | | | | | | |
,C)
Tricky's insurance policy on his own life may not be paid out to the
| | | | | | | | | | | | | |
named beneficiary. |
D)
Tricky's current wife, Dixie, may not provide for his children from a
| | | | | | | | | | | |
previous marriage. - CORRECT ANSWER✔✔-C
| | | |
Which of the following advisors is (are) qualified to give estate-planning
| | | | | | | | | | |
advice?
I. AttorneysII. CPAsIII. Financial planners
| | | |
A)
I only
|
B)
I and II
| |
C)
II and III
| |
D)
I, II and III - CORRECT ANSWER✔✔-D
| | | | | |
All of the following are transfer costs associated with estate planning
| | | | | | | | | | |
EXCEPT
A)
,attorney fees for documents. | | |
B)
costs of retitling real estate.
| | | |
C)
estate and inheritance taxes.
| | |
D)
property taxes on inherited property. - CORRECT ANSWER✔✔-D
| | | | | | |
As a non-attorney CFP®, you are asked to assist one of your clients who
| | | | | | | | | | | | | |
is very frugal to prepare her will using LegalZoom.com. Which of the
| | | | | | | | | | | |
following statements is correct? | | |
A)
It is permissible as long as you get a waiver from your client.
| | | | | | | | | | | |
B)
It is permissible as long as you are not an heir, legatee or beneficiary.
| | | | | | | | | | | | |
C)
Advise her that LegalZoom is not very reputable and direct her to a
| | | | | | | | | | | | |
better website. |
D)
You cannot assist her. - CORRECT ANSWER✔✔-D
| | | | | |
, Dale and Tomi have been in a long-term, non-married, non-traditional
| | | | | | | | | |
relationship. Dale wants to make sure that if he dies first, Tomi will be
| | | | | | | | | | | | | |
provided for. Which of the following would you recommend to fulfill
| | | | | | | | | | |
Dale's goal of transferring assets to Tomi at Dale's death?
| | | | | | | | |
A)
Name Tomi as the beneficiary of Dale's retirement plan.
| | | | | | | |
B)
Transfer the ownership of Dale's real estate investments into a tenancy
| | | | | | | | | | |
by the entirety arrangement.
| | |
C)
Advise Dale against writing a will that specifically bequeaths assets to
| | | | | | | | | | |
Tomi.
D)
Recommend that Dale and Tomi move to a community property state. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-A |
Which of the following assets will pass through probate?
| | | | | | | |
A)
A life insurance policy with a named beneficiary
| | | | | | |
B)
Assets held in an inter-vivos trust
| | | | |
C)
A pay-on-death account with a named beneficiary
| | | | | |
Correct Answers
Which of the following is not an estate-planning goal?
| | | | | | | |
A)
Maximizing the gross estate | | |
B)
Minimizing transfer taxes | |
C)
Providing for liquidity at death
| | | |
D)
Fulfilling client's healthcare decisions - CORRECT ANSWER✔✔-A
| | | | | |
Although he has a vast fortune, Tricky has decided not to prepare an
| | | | | | | | | | | | |
estate plan because he believes that his surviving family members will
| | | | | | | | | | |
divide his assets appropriately. Which of the following is not a risk
| | | | | | | | | | | |
associated with failing to plan an estate?
| | | | | |
A)
Tricky's estate could incur excessive transfer taxes.
| | | | | |
B)
Tricky's favorite car may not be transferred to his ex-wife, Carla.
| | | | | | | | | |
,C)
Tricky's insurance policy on his own life may not be paid out to the
| | | | | | | | | | | | | |
named beneficiary. |
D)
Tricky's current wife, Dixie, may not provide for his children from a
| | | | | | | | | | | |
previous marriage. - CORRECT ANSWER✔✔-C
| | | |
Which of the following advisors is (are) qualified to give estate-planning
| | | | | | | | | | |
advice?
I. AttorneysII. CPAsIII. Financial planners
| | | |
A)
I only
|
B)
I and II
| |
C)
II and III
| |
D)
I, II and III - CORRECT ANSWER✔✔-D
| | | | | |
All of the following are transfer costs associated with estate planning
| | | | | | | | | | |
EXCEPT
A)
,attorney fees for documents. | | |
B)
costs of retitling real estate.
| | | |
C)
estate and inheritance taxes.
| | |
D)
property taxes on inherited property. - CORRECT ANSWER✔✔-D
| | | | | | |
As a non-attorney CFP®, you are asked to assist one of your clients who
| | | | | | | | | | | | | |
is very frugal to prepare her will using LegalZoom.com. Which of the
| | | | | | | | | | | |
following statements is correct? | | |
A)
It is permissible as long as you get a waiver from your client.
| | | | | | | | | | | |
B)
It is permissible as long as you are not an heir, legatee or beneficiary.
| | | | | | | | | | | | |
C)
Advise her that LegalZoom is not very reputable and direct her to a
| | | | | | | | | | | | |
better website. |
D)
You cannot assist her. - CORRECT ANSWER✔✔-D
| | | | | |
, Dale and Tomi have been in a long-term, non-married, non-traditional
| | | | | | | | | |
relationship. Dale wants to make sure that if he dies first, Tomi will be
| | | | | | | | | | | | | |
provided for. Which of the following would you recommend to fulfill
| | | | | | | | | | |
Dale's goal of transferring assets to Tomi at Dale's death?
| | | | | | | | |
A)
Name Tomi as the beneficiary of Dale's retirement plan.
| | | | | | | |
B)
Transfer the ownership of Dale's real estate investments into a tenancy
| | | | | | | | | | |
by the entirety arrangement.
| | |
C)
Advise Dale against writing a will that specifically bequeaths assets to
| | | | | | | | | | |
Tomi.
D)
Recommend that Dale and Tomi move to a community property state. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-A |
Which of the following assets will pass through probate?
| | | | | | | |
A)
A life insurance policy with a named beneficiary
| | | | | | |
B)
Assets held in an inter-vivos trust
| | | | |
C)
A pay-on-death account with a named beneficiary
| | | | | |
