Comprehensive Estate Planning: Key
Terms, Documents, and Tax Strategies
Exam Questions and Answers Graded A+
Estate Planning - Correct answer-The process of planning how your assets will be
managed and distributed to your loved ones, while minimizing taxes and legal
problems.
People Planning - Correct answer-Planning to meet the financial and personal
needs of your loved ones, like income or care for minors.
Asset Planning - Correct answer-Planning what will happen to your property,
investments, and belongings after your death.
Will - Correct answer-A legal document that says who gets your property and who
will care for your children when you die.
Probate - Correct answer-Court process for transferring assets when someone dies
without a will or for their probate estate.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Codicil - Correct answer-A legal document used to make small changes to an
existing will.
Living Will - Correct answer-A document that tells doctors your wishes for
medical care if you cannot make decisions yourself.
Power of Attorney (POA) - Correct answer-A legal document giving someone the
authority to act for you in financial, legal, or health matters.
General Power of Attorney - Correct answer-Gives broad authority to handle
finances, legal matters, and healthcare while you are able or traveling.
Limited or Special Power of Attorney - Correct answer-Gives authority to act on
your behalf only in specific situations.
Durable Power of Attorney - Correct answer-Stays effective even if you become
incapacitated.
Springing Power of Attorney - Correct answer-Becomes active only after a specific
event or condition occurs.
Trust - Correct answer-A legal arrangement where one person (trustee) manages
property for someone else (beneficiary).
Grantor - Correct answer-The person who creates the trust.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Terms, Documents, and Tax Strategies
Exam Questions and Answers Graded A+
Estate Planning - Correct answer-The process of planning how your assets will be
managed and distributed to your loved ones, while minimizing taxes and legal
problems.
People Planning - Correct answer-Planning to meet the financial and personal
needs of your loved ones, like income or care for minors.
Asset Planning - Correct answer-Planning what will happen to your property,
investments, and belongings after your death.
Will - Correct answer-A legal document that says who gets your property and who
will care for your children when you die.
Probate - Correct answer-Court process for transferring assets when someone dies
without a will or for their probate estate.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Codicil - Correct answer-A legal document used to make small changes to an
existing will.
Living Will - Correct answer-A document that tells doctors your wishes for
medical care if you cannot make decisions yourself.
Power of Attorney (POA) - Correct answer-A legal document giving someone the
authority to act for you in financial, legal, or health matters.
General Power of Attorney - Correct answer-Gives broad authority to handle
finances, legal matters, and healthcare while you are able or traveling.
Limited or Special Power of Attorney - Correct answer-Gives authority to act on
your behalf only in specific situations.
Durable Power of Attorney - Correct answer-Stays effective even if you become
incapacitated.
Springing Power of Attorney - Correct answer-Becomes active only after a specific
event or condition occurs.
Trust - Correct answer-A legal arrangement where one person (trustee) manages
property for someone else (beneficiary).
Grantor - Correct answer-The person who creates the trust.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
