HS 330 - Estate Planning Exam Questions and Answers Latest Update

HS 330 - Estate Planning Exam Questions and Answers Latest Update Which of the following is not an estate-planning goal? A) Maximizing the gross estate B) Minimizing transfer taxes C) Providing for liquidity at death D) Fulfilling client's healthcare decisions - Answers A Although he has a vast fortune, Tricky has decided not to prepare an estate plan because he believes that his surviving family members will divide his assets appropriately. Which of the following is not a risk associated with failing to plan an estate? A) Tricky's estate could incur excessive transfer taxes. B) Tricky's favorite car may not be transferred to his ex-wife, Carla. C) Tricky's insurance policy on his own life may not be paid out to the named beneficiary. D) Tricky's current wife, Dixie, may not provide for his children from a previous marriage. - Answers C Which of the following advisors is (are) qualified to give estate-planning advice? I. AttorneysII. CPAsIII. Financial planners A) I only B) I and II C) II and III D) I, II and III - Answers D All of the following are transfer costs associated with estate planning EXCEPT A) attorney fees for documents. B) costs of retitling real estate. C) estate and inheritance taxes. D) property taxes on inherited property. - Answers D As a non-attorney CFP®, you are asked to assist one of your clients who is very frugal to prepare her will using LegalZ. Which of the following statements is correct? A) It is permissible as long as you get a waiver from your client. B) It is permissible as long as you are not an heir, legatee or beneficiary. C) Advise her that LegalZoom is not very reputable and direct her to a better website. D) You cannot assist her. - Answers D Dale and Tomi have been in a long-term, non-married, non-traditional relationship. Dale wants to make sure that if he dies first, Tomi will be provided for. Which of the following would you recommend to fulfill Dale's goal of transferring assets to Tomi at Dale's death? A) Name Tomi as the beneficiary of Dale's retirement plan. B) Transfer the ownership of Dale's real estate investments into a tenancy by the entirety arrangement. C) Advise Dale against writing a will that specifically bequeaths assets to Tomi. D) Recommend that Dale and Tomi move to a community property state. - Answers A Which of the following assets will pass through probate? A) A life insurance policy with a named beneficiary B) Assets held in an inter-vivos trust C) A pay-on-death account with a named beneficiary D) Household goods left to family members via a side letter - Answers D Cara owns the following property: A personal residence titled as sole ownership fee simple valued at $400,000. A $500,000 life insurance policy on her own life. The named beneficiary is Cara's brother James, who died 6 months ago leaving two children, Michael and Carol. There is no contingent beneficiary listed. A car valued at $20,000 titled JTWROS with Cara's mother. An IRA valued at $200,000 with Cara's mother as the named beneficiary. What is the current value of Cara's probate estate? A) $400,000 B) $900,000 C) $920,000 D) $1,320,000 - Answers B Which of the following statements is incorrect regarding probate property? A) An LLC passed to a key employee when the business owner retires will be considered probate property when the business owner dies. B) Assets through a testamentary trust are probate property. C) Property held as tenants in common is probate property. D) Property passed through a revocable trust is not probate property. - Answers A Which of the following statements regarding the probate process is not correct? A) The probate process can cause delays during which the heirs will be waiting to receive their assets. B) One advantage of the probate process is that it provides clear title to the heirs and beneficiaries. C) The probate process ensures that creditors are given proper notice to make claims against the estate, and that heirs are protected from late claims by creditors. D) The probate process ensures the proceedings are kept private and confidential. - Answers D Zuri gives Omani a power of appointment. Which of the following powers would be deemed a general power of appointment? A) The power to use Zuri's money to pay Zuris' creditors B) The power to sell and buy property on Zuri's behalf C) The power to use Zuri's money to pay Omani's creditors D) The power to make gifts to Zuri's heirs and charities - Answers C Making arrangements to deal with the possibility of physical or mental incapacity is an important area of estate planning. Which of the following arrangements may be used to deal with such an unexpected incapacity? I. Springing durable power of attorney II. Revocable living trust III. QTIP IV. A living will A) I only B) II and IV C) I, II, and IV D) I, II, III, and IV - Answers C Josephine is the trustee of a trust which gives her the power of appointment to distribute trust assets for a beneficiary's health, education, maintenance, and support. Josephine is the beneficiary of the trust during her lifetime. Which statement is correct? A)