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ESTATE PLANNING EXAM 1 2026|
ACTUAL QUESTIONS WITH
ANSWERS (A+)
American Taxpayer Relief Act of 2012 - correct-answer -Maintains unification of
the gift and estate tax regime, increases the applicable exemption for generation
skipping transfer, gift, and estate taxes to $5,340,000 in 2014 (indexes for
inflation), and exacts a 40% maximum transfer tax rate on excess transfers.
Wills - correct-answer -Legal documents providing the testator (will-maker) the
opportunity to control the distribution of his property at death; a will avoids the
state's intestacy law distribution scheme.
A will may be revoked or amended at any time by the testator as long as... -
correct-answer -The testator has legal capacity.
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When is a will effective? - correct-answer -Only upon death of the testator.
Intestacy - correct-answer -The state of a decedent without a valid will that
disposes of all the decedent's property.
Intestacy Succession - correct-answer -A legal distribution scheme provided by
the state legislature for a decedent who dies without a valid or complete will.
Testate - correct-answer -A decedent who has a valid will
Risks to Dying Intestate - correct-answer --A surviving spouse may receive the
same share of a decedent's probate estate as a child (1 child vs. 10 children)
-A spouse may share assets with in-laws.
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-The decedent's children are usually treated equally in intestacy, which may not
be equitable
- The Probate Court will appoint an administrator and require a surety bond,
increasing the cost of probate.
-The decedent with a valid will can appoint an executor to serve (and without
bond)
Advantages of a Properly Prepared and Valid Will - correct-answer --Permits
selection of an executor/trix as the decedent's personal representative to
administer the estate.
-Provides for orderly transfer of assets that are not automatically transferred at
death
-Permits the designation of guardian for minors and dependents
-Permits transfer of assets to charity (not possible in intestacy)
A will can... - correct-answer --Provide for the utilization of the unlimited marital
deduction
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-Provide for disinheritance of unworthy heirs
-Help to minimize the estate tax burden
-Direct the estate's share of any tax burden to be paid, as well as sources of funds
to be used to pay such taxes
Limitations of Wills - correct-answer --A will does not prevent disinherited parties
from contesting the will
-Courts can invalidate certain restrictions or sections of a will
-A will does not supercede automatic transfers upon testator's death
-A poorly drafted will may be found to be invalid or testator's wishes may not be
clearly understood.
Holographic Wills - correct-answer -A Will written in the testator's handwriting
(not typed). Must be signed and dated by testator. No witnesses required.
ESTATE PLANNING EXAM 1 2026|
ACTUAL QUESTIONS WITH
ANSWERS (A+)
American Taxpayer Relief Act of 2012 - correct-answer -Maintains unification of
the gift and estate tax regime, increases the applicable exemption for generation
skipping transfer, gift, and estate taxes to $5,340,000 in 2014 (indexes for
inflation), and exacts a 40% maximum transfer tax rate on excess transfers.
Wills - correct-answer -Legal documents providing the testator (will-maker) the
opportunity to control the distribution of his property at death; a will avoids the
state's intestacy law distribution scheme.
A will may be revoked or amended at any time by the testator as long as... -
correct-answer -The testator has legal capacity.
,2|Page
When is a will effective? - correct-answer -Only upon death of the testator.
Intestacy - correct-answer -The state of a decedent without a valid will that
disposes of all the decedent's property.
Intestacy Succession - correct-answer -A legal distribution scheme provided by
the state legislature for a decedent who dies without a valid or complete will.
Testate - correct-answer -A decedent who has a valid will
Risks to Dying Intestate - correct-answer --A surviving spouse may receive the
same share of a decedent's probate estate as a child (1 child vs. 10 children)
-A spouse may share assets with in-laws.
,3|Page
-The decedent's children are usually treated equally in intestacy, which may not
be equitable
- The Probate Court will appoint an administrator and require a surety bond,
increasing the cost of probate.
-The decedent with a valid will can appoint an executor to serve (and without
bond)
Advantages of a Properly Prepared and Valid Will - correct-answer --Permits
selection of an executor/trix as the decedent's personal representative to
administer the estate.
-Provides for orderly transfer of assets that are not automatically transferred at
death
-Permits the designation of guardian for minors and dependents
-Permits transfer of assets to charity (not possible in intestacy)
A will can... - correct-answer --Provide for the utilization of the unlimited marital
deduction
, 4|Page
-Provide for disinheritance of unworthy heirs
-Help to minimize the estate tax burden
-Direct the estate's share of any tax burden to be paid, as well as sources of funds
to be used to pay such taxes
Limitations of Wills - correct-answer --A will does not prevent disinherited parties
from contesting the will
-Courts can invalidate certain restrictions or sections of a will
-A will does not supercede automatic transfers upon testator's death
-A poorly drafted will may be found to be invalid or testator's wishes may not be
clearly understood.
Holographic Wills - correct-answer -A Will written in the testator's handwriting
(not typed). Must be signed and dated by testator. No witnesses required.
