AAMS Exam 2026 || Most Recent Exam 2026-2027 Actual
Complete Real Exam Questions And Correct Answers
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Kurt is establishing a trust for the benefit of his nephew, Lloyd,
age 26. Lloyd has a history of financial irresponsibility and has
run up significant amounts of debt since he got out of college.
Kurt wants to ensure that Lloyd is not able to assign his
interest in the trust to a creditor and that Lloyd's creditors
cannot demand that the trustee pay Lloyd's debts. Which of the
following trust provisions will accomplish Kurt's objective? -
ANSWER -spendthrift provision
Two sisters plan to purchase an office building together. One
sister will contribute 80% of the purchase price, and the other
will contribute 20%. The sisters want title to the property to
reflect their respective ownership shares of 80% and 20%, and
they want the ability to leave their interests to whomever they
choose under their wills. Which of the following forms of
property ownership will meet the sisters' objectives? -
ANSWER -tenancy in common
Carmen is considering estate-planning options and wants to
gift assets to her loved ones. All of the following are
advantages to Carmen when gifting her assets except:
,1. she can take advantage of the annual exclusion for gifts of
future interests 2. gift tax paid is excluded from Carmen's gross
estate, except for those paid on gifts made within three years
before her death
3. the future appreciation on Carmen's transferred assets
will be removed from her gross estate
4. the gifted assets will be removed from Carmen's gross
estate - ANSWER she can take advantage of the annual
exclusion for gifts of future interests
A trust that is created by a decedent's will and made effective
at death is a(n) -
ANSWER -
testamentary trust
In which of the following types of ownership is property
acquired during a marriage considered to belong one-half to
the wife and one-half to the husband, regardless of whose
name is on the title? - ANSWER -community property
When the owner-grantor transfers property and has the right to
have all or part
of the transferred property returned after an intervening
interest, the owner-
grantor's interest is known as a - ANSWER
–reversion
Custodial accounts (UGMA or UTMA accounts) have all of the
following attributes, except:
,1. income is taxed to the minor per the "kiddie tax rules"
2. they are revocable
3. the property is subject to disbursement for the minor's
benefit at the custodian's discretion until the minor reaches
the age of majority
4. if the donor is also the custodian, the account value is
included in the donor's gross estate - ANSWER -they are
revocable
The 10% penalty for withdrawals before age 59½ from
qualified retirement plans is not assessed on distributions
made for all of the following except: a) separation from
service after age 55
b)
disability
c) pursuant to a qualified domestic
relations order
d) mortgage payments - ANSWER -mortgage
payments
Which of these statements is most accurate with respect to the
life insurance needs of the typical family? - ANSWER -Total life
insurance requirements may decrease as an individual
approaches retirement
Assume a client has $30,000 in a money market fund, $2,000 in
a checking account, a mortgage loan of $110,000 (not to be
paid off, as it will be transferred to the spouse), an auto loan of
$20,000, and credit card balances of $5,000. Assume that if he
, died, postmortem expenses would be $15,000. What would be
the cash requirements for this client? - ANSWER -$8,000
An investment professional is assessing the life insurance
needs of the Robinson family. Mr. Robinson has determined
that the family's immediate cash flow requirements in the event
of his death are $65,000. The amount needed to meet all future
funding requirements (net of Mrs. Robinson's income and
Social Security and pension benefits) is estimated to be
$550,000. The family owns a home in which their equity interest
is $200,000. Based upon these figures, the investment
professional would recommend life insurance with a face
amount of:
- ANSWER -$615,000
With regard to financial planning, many individuals and
households overlook the potential needs for: - ANSWER -
disability income and long-term care insurance
Mrs. Bartlett purchased a life insurance policy that will pay
$100,000 to her
beneficiary should she die at any time during the next
year. The policy
guarantees the right to renew every year for the next five years,
and builds no
cash value. Mrs. Bartlett has purchased a - ANSWER -term life
insurance policy
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!!| Newest Exam | Just Released!!
Kurt is establishing a trust for the benefit of his nephew, Lloyd,
age 26. Lloyd has a history of financial irresponsibility and has
run up significant amounts of debt since he got out of college.
Kurt wants to ensure that Lloyd is not able to assign his
interest in the trust to a creditor and that Lloyd's creditors
cannot demand that the trustee pay Lloyd's debts. Which of the
following trust provisions will accomplish Kurt's objective? -
ANSWER -spendthrift provision
Two sisters plan to purchase an office building together. One
sister will contribute 80% of the purchase price, and the other
will contribute 20%. The sisters want title to the property to
reflect their respective ownership shares of 80% and 20%, and
they want the ability to leave their interests to whomever they
choose under their wills. Which of the following forms of
property ownership will meet the sisters' objectives? -
ANSWER -tenancy in common
Carmen is considering estate-planning options and wants to
gift assets to her loved ones. All of the following are
advantages to Carmen when gifting her assets except:
,1. she can take advantage of the annual exclusion for gifts of
future interests 2. gift tax paid is excluded from Carmen's gross
estate, except for those paid on gifts made within three years
before her death
3. the future appreciation on Carmen's transferred assets
will be removed from her gross estate
4. the gifted assets will be removed from Carmen's gross
estate - ANSWER she can take advantage of the annual
exclusion for gifts of future interests
A trust that is created by a decedent's will and made effective
at death is a(n) -
ANSWER -
testamentary trust
In which of the following types of ownership is property
acquired during a marriage considered to belong one-half to
the wife and one-half to the husband, regardless of whose
name is on the title? - ANSWER -community property
When the owner-grantor transfers property and has the right to
have all or part
of the transferred property returned after an intervening
interest, the owner-
grantor's interest is known as a - ANSWER
–reversion
Custodial accounts (UGMA or UTMA accounts) have all of the
following attributes, except:
,1. income is taxed to the minor per the "kiddie tax rules"
2. they are revocable
3. the property is subject to disbursement for the minor's
benefit at the custodian's discretion until the minor reaches
the age of majority
4. if the donor is also the custodian, the account value is
included in the donor's gross estate - ANSWER -they are
revocable
The 10% penalty for withdrawals before age 59½ from
qualified retirement plans is not assessed on distributions
made for all of the following except: a) separation from
service after age 55
b)
disability
c) pursuant to a qualified domestic
relations order
d) mortgage payments - ANSWER -mortgage
payments
Which of these statements is most accurate with respect to the
life insurance needs of the typical family? - ANSWER -Total life
insurance requirements may decrease as an individual
approaches retirement
Assume a client has $30,000 in a money market fund, $2,000 in
a checking account, a mortgage loan of $110,000 (not to be
paid off, as it will be transferred to the spouse), an auto loan of
$20,000, and credit card balances of $5,000. Assume that if he
, died, postmortem expenses would be $15,000. What would be
the cash requirements for this client? - ANSWER -$8,000
An investment professional is assessing the life insurance
needs of the Robinson family. Mr. Robinson has determined
that the family's immediate cash flow requirements in the event
of his death are $65,000. The amount needed to meet all future
funding requirements (net of Mrs. Robinson's income and
Social Security and pension benefits) is estimated to be
$550,000. The family owns a home in which their equity interest
is $200,000. Based upon these figures, the investment
professional would recommend life insurance with a face
amount of:
- ANSWER -$615,000
With regard to financial planning, many individuals and
households overlook the potential needs for: - ANSWER -
disability income and long-term care insurance
Mrs. Bartlett purchased a life insurance policy that will pay
$100,000 to her
beneficiary should she die at any time during the next
year. The policy
guarantees the right to renew every year for the next five years,
and builds no
cash value. Mrs. Bartlett has purchased a - ANSWER -term life
insurance policy
