Estate Planning Exam 1 Questions and
Answers Graded A+
Which of the following is included in the definition of estate planning?
1. Asset management.
2. Accumulation of wealth.
3. Asset preservation.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2, and 3. - Correct answer-d. 1, 2, and 3.
2. Which of the following does not need estate planning?
a. Charles, age 30, married with two minor children, and a net worth of $375,000.
b. Sheila, age 35, never been married, one severely disabled son.
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, c. Cynthia, age 45, single, has a net worth of $450,000 and two dogs. d. All of the
above need estate planning. - Correct answer-d. All of the above need estate
planning.
Who on the estate planning team usually calculates the adjusted basis of assets and
addresses tax issues?
a. Licensed attorney.
b. Certified Public Accountant (CPA).
c. Financial planner.
d. Trust officer. - Correct answer-b. Certified Public Accountant (CPA).
Joe is a financial planner in the state of Iowa. Although he attended one year of law
school, Joe is not a licensed attorney. Which of the following actions would be
considered the practice of law?
a. Drafting wills, trust documents, and powers of attorney.
b. Reviewing wills, trust documents, and powers of attorney.
c. Directing a client to seek legal advice from a licensed attorney.
d. Acting as trustee for a client's trust. - Correct answer-a. Drafting wills, trust
documents, and powers of attorney.
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Answers Graded A+
Which of the following is included in the definition of estate planning?
1. Asset management.
2. Accumulation of wealth.
3. Asset preservation.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2, and 3. - Correct answer-d. 1, 2, and 3.
2. Which of the following does not need estate planning?
a. Charles, age 30, married with two minor children, and a net worth of $375,000.
b. Sheila, age 35, never been married, one severely disabled son.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, c. Cynthia, age 45, single, has a net worth of $450,000 and two dogs. d. All of the
above need estate planning. - Correct answer-d. All of the above need estate
planning.
Who on the estate planning team usually calculates the adjusted basis of assets and
addresses tax issues?
a. Licensed attorney.
b. Certified Public Accountant (CPA).
c. Financial planner.
d. Trust officer. - Correct answer-b. Certified Public Accountant (CPA).
Joe is a financial planner in the state of Iowa. Although he attended one year of law
school, Joe is not a licensed attorney. Which of the following actions would be
considered the practice of law?
a. Drafting wills, trust documents, and powers of attorney.
b. Reviewing wills, trust documents, and powers of attorney.
c. Directing a client to seek legal advice from a licensed attorney.
d. Acting as trustee for a client's trust. - Correct answer-a. Drafting wills, trust
documents, and powers of attorney.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
