HS 330 ESTATE PLANNING
QUESTIONS AND ANSWERS
, 1. Of the following, who should gen-
The correct answer is (B).
erally be a member of the estate
A trustee is not a member of the estate planning team,
planning team?
because the trustee's responsibility is not to advise the
I. Investment Advisor
client about forming the estate plan but to carry out the
II. Trustee
terms of the trust document.
III. Insurance agent
IV. Attorney
2. Testate Having made and left a valid will.
3. General Power of Appointment Donee can appoint the property to anyone, including
himself, his estate, or his creditors
4. Springing Durable Power of Attor- - is activated when the principal is declared incompetent
ney
A springing durable power of attorney is activated when
an agent receives notification from a physician that the
principal is found to be mentally or physically incompe-
tent.
5. Intestate dying without a will
6. Tenancy in Common Co-ownership of property in which each party owns an
undivided interest that passes to his or her heirs at death.
7. Tenancy by the Entirety The joint ownership, recognized in some states, of prop-
erty acquired by husband and wife during marriage.
Upon the death of one spouse, the survivor becomes the
owner of the property.
8. Life Estate An interest in real or personal property that is limited
in duration to the lifetime of its owner or some other
designated person or persons.
QUESTIONS AND ANSWERS
, 1. Of the following, who should gen-
The correct answer is (B).
erally be a member of the estate
A trustee is not a member of the estate planning team,
planning team?
because the trustee's responsibility is not to advise the
I. Investment Advisor
client about forming the estate plan but to carry out the
II. Trustee
terms of the trust document.
III. Insurance agent
IV. Attorney
2. Testate Having made and left a valid will.
3. General Power of Appointment Donee can appoint the property to anyone, including
himself, his estate, or his creditors
4. Springing Durable Power of Attor- - is activated when the principal is declared incompetent
ney
A springing durable power of attorney is activated when
an agent receives notification from a physician that the
principal is found to be mentally or physically incompe-
tent.
5. Intestate dying without a will
6. Tenancy in Common Co-ownership of property in which each party owns an
undivided interest that passes to his or her heirs at death.
7. Tenancy by the Entirety The joint ownership, recognized in some states, of prop-
erty acquired by husband and wife during marriage.
Upon the death of one spouse, the survivor becomes the
owner of the property.
8. Life Estate An interest in real or personal property that is limited
in duration to the lifetime of its owner or some other
designated person or persons.
