Estate Planning Chp. 1-3 Exam Questions
and Answers Graded A+
Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.
2. The client's family may not be provided for financially.
3. The estate suffers liquidity problems at the client's death.
4. The estate may bear higher transfer costs. - Correct answer-All 4
Who on the estate planning team usually calculates the adjusted basis of assets and
addresses tax issues? - Correct answer-Certified Public Accountant (CPA)
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs. - Correct
answer-All of the above
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, Everyone has their own objectives with regard to estate planning. Which of the
following objectives is most important for a financial advisor to keep in mind when
counseling a client? - Correct answer-Effectively transfer assets
Hardey is a financial planner in the state of Iowa. Although he attended one year of
law school, Hardey is not a licensed attorney. Which of the following actions
would be considered the practice of law? - Correct answer-Drafting wills, trust
documents, and powers of attorney.
Skip does not want to write a will. It upsets him to contemplate his own death and
he simply desires to avoid the estate planning process. All of the following are
risks Skip's estate may face due to his inaction, except: - Correct answer-Skip's
estate faces increased debt payments for outstanding debts at death.
Which of the following is included in the definition of estate planning?
1. Asset management
2. Accumulation of wealth
3. Asset preservation - Correct answer-All 3
The first step in the estate planning process includes: - Correct answer-Meeting
with the client to gather information regarding the client's assets, family structure,
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
and Answers Graded A+
Which of the following is a risk of failing to plan for one's estate?
1. Property transfers contrary to the client's wishes.
2. The client's family may not be provided for financially.
3. The estate suffers liquidity problems at the client's death.
4. The estate may bear higher transfer costs. - Correct answer-All 4
Who on the estate planning team usually calculates the adjusted basis of assets and
addresses tax issues? - Correct answer-Certified Public Accountant (CPA)
Which of the following does not need estate planning?
A)Jeb, age 30, married with two minor children, and a net worth of $375,000.
B)Quynh, age 35, never been married, one severely disabled son.
C)Cynthia, age 45, single, has a net worth of $450,000 and two dogs. - Correct
answer-All of the above
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Everyone has their own objectives with regard to estate planning. Which of the
following objectives is most important for a financial advisor to keep in mind when
counseling a client? - Correct answer-Effectively transfer assets
Hardey is a financial planner in the state of Iowa. Although he attended one year of
law school, Hardey is not a licensed attorney. Which of the following actions
would be considered the practice of law? - Correct answer-Drafting wills, trust
documents, and powers of attorney.
Skip does not want to write a will. It upsets him to contemplate his own death and
he simply desires to avoid the estate planning process. All of the following are
risks Skip's estate may face due to his inaction, except: - Correct answer-Skip's
estate faces increased debt payments for outstanding debts at death.
Which of the following is included in the definition of estate planning?
1. Asset management
2. Accumulation of wealth
3. Asset preservation - Correct answer-All 3
The first step in the estate planning process includes: - Correct answer-Meeting
with the client to gather information regarding the client's assets, family structure,
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
