Final Exam - Revocable Trust

Question 1

Characteristics

Answer 1

estate planning, created during lifetime, no impact on income taxes

Question 2

property eligible for trust

Answer 2

LI, cash, stocks, bonds, residence, personal assets

Question 3

Why set up revocable living trust?

Answer 3

manage assets, conserve assets, distribute assets, estate plan

Question 4

Manage assets

Answer 4

grantor retains lifetime control, successor trustee manage property if grantor dies, unification of assets, privacy

Question 5

Conservation of assets

Answer 5

avoid cost of probate, trust less likely than a will to be successful

Question 6

Distribution of assets

Answer 6

trustee will invest and manage, flexible, unification

Question 7

Disadvantages of revocable living trusts

Answer 7

legal fees, fee to corporate, administrative fees

Question 8

trustee

Answer 8

manage and invest assets of trust, make payment to beneficiaries

Question 9

Beneficiaries

Answer 9

grantor, other primary ones

Question 10

General power of attorney

Answer 10

authorizes an agent to transact business

Question 11

health care power of attorney

Answer 11

authorize agent to communicate for you concerning medical treatment

Question 12

Living will

Answer 12

declaration of your wishes regarding resuscitation, quality of life, end of life