HS 330 - Estate Planning Questions With Correct Answers

HS 330 - Estate Planning Questions With
Correct Answers

Which of the following is not an estate-planning goal?
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A)
Maximizing the gross estate | | |




B)
Minimizing transfer taxes | |




C)
Providing for liquidity at death
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D)
Fulfilling client's healthcare decisions - CORRECT ANSWER✔✔-A
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Although he has a vast fortune, Tricky has decided not to prepare an
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estate plan because he believes that his surviving family members will
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divide his assets appropriately. Which of the following is not a risk
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associated with failing to plan an estate?
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A)
Tricky's estate could incur excessive transfer taxes.
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B)
Tricky's favorite car may not be transferred to his ex-wife, Carla.
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,C)
Tricky's insurance policy on his own life may not be paid out to the
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named beneficiary. |




D)
Tricky's current wife, Dixie, may not provide for his children from a
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previous marriage. - CORRECT ANSWER✔✔-C
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Which of the following advisors is (are) qualified to give estate-planning
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advice?
I. AttorneysII. CPAsIII. Financial planners
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A)
I only
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B)
I and II
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C)
II and III
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D)
I, II and III - CORRECT ANSWER✔✔-D
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All of the following are transfer costs associated with estate planning
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EXCEPT
A)

,attorney fees for documents. | | |




B)
costs of retitling real estate.
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C)
estate and inheritance taxes.
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D)
property taxes on inherited property. - CORRECT ANSWER✔✔-D
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As a non-attorney CFP®, you are asked to assist one of your clients who
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is very frugal to prepare her will using LegalZoom.com. Which of the
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following statements is correct? | | |




A)
It is permissible as long as you get a waiver from your client.
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B)
It is permissible as long as you are not an heir, legatee or beneficiary.
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C)
Advise her that LegalZoom is not very reputable and direct her to a
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better website. |




D)
You cannot assist her. - CORRECT ANSWER✔✔-D
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, Dale and Tomi have been in a long-term, non-married, non-traditional
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relationship. Dale wants to make sure that if he dies first, Tomi will be
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provided for. Which of the following would you recommend to fulfill
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Dale's goal of transferring assets to Tomi at Dale's death?
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A)
Name Tomi as the beneficiary of Dale's retirement plan.
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B)
Transfer the ownership of Dale's real estate investments into a tenancy
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by the entirety arrangement.
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C)
Advise Dale against writing a will that specifically bequeaths assets to
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Tomi.
D)
Recommend that Dale and Tomi move to a community property state. -
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CORRECT ANSWER✔✔-A |




Which of the following assets will pass through probate?
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A)
A life insurance policy with a named beneficiary
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B)
Assets held in an inter-vivos trust
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C)
A pay-on-death account with a named beneficiary
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