G.56 Estate and incapacity planning documents

Question 1

Jennifer recently discussed her end-of-life wishes with her financial planner. She wants to ensure that her health care preferences are followed should she become diagnosed with a terminal illness or incapacitated in a way that she cannot make decisions for herself. Jennifer’s planner mentioned a document distinct from a Last Will and Testament that does not deal with her property or inheritance. What is the document her planner is referring to?

A. Living Will
B. Revocable Trust
C. Testamentary Trust
D. Power of Attorney for Finances

Answer 1

A. Living Will

G.56 Estate and incapacity planning documents

Question 2

Jasmine has recently completed her estate planning and is discussing various documents with her financial planner, Mark. She mentioned a document she signed that dictates the conditions under which she would decline medical treatments if she stops breathing or if her heart stops. This document can also be integrated with the living will provisions in a durable medical power of attorney. Which of the following is Jasmine referring to?

A. Last Will and Testament
B. Testamentary Trust
C. Medical Directive
D. Durable Financial Power of Attorney

Answer 2

C. Medical Directive

G.56 Estate and incapacity planning documents

Question 3

Samantha recently met with her attorney to update her estate planning documents. She specifically wanted a document that would allow her friend, Elizabeth, to make medical decisions on her behalf should she become unable to express her own wishes. In addition, she’s updating her will to distribute her assets upon her passing. Which of the following best describes the document Samantha needs for Elizabeth to make medical decisions on her behalf?

A. Last Will and Testament
B. Revocable Living Trust
C. Durable Power of Attorney for Finance
D. Medical Power of Attorney

Answer 3

D. Medical Power of Attorney

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G.56 Estate and incapacity planning documents

Question 4

Catherine recently met with her financial planner to discuss contingency plans in the event she becomes incapacitated and cannot manage her own financial affairs. Which of the following documents will allow her to appoint a trusted individual to handle tasks such as paying her bills, managing investments, and dealing with taxes during her incapacity?

A. Last Will and Testament
B. Health Care Proxy
C. Financial Power of Attorney
D. Living Trust

Answer 4

C. Financial Power of Attorney

G.56 Estate and incapacity planning documents

Question 5

Maria is exploring estate planning tools to ensure that her assets are well-managed both during her lifetime and after her death. She is especially interested in a tool that can help her avoid probate, protect her assets from creditors, and stagger inheritance distributions to her children until they reach ages she deems appropriate. Which of the following best serves Maria’s needs?

A. Last Will and Testament
B. Durable Power of Attorney
C. Revocable Living Trust
D. Health Care Proxy

Answer 5

C. Revocable Living Trust

G.56 Estate and incapacity planning documents

Question 6

Jane has been working closely with her financial planner, Thomas, to ensure that her assets are effectively gathered, looked after, preserved, and handed down to her heirs in accordance with her wishes. She wants to take into account any legal requirements, tax implications, and her own personal goals. What process is Jane undertaking?

A. Risk Management
B. Estate Planning
C. Tax Optimization
D. Investment Strategy

Answer 6

B. Estate Planning

G.56 Estate and incapacity planning documents

Question 7

Sarah had a will prepared several years ago. Recently, she experienced significant changes in her financial situation and wants to modify certain portions of her will without rewriting the entire document. Which of the following allows Sarah to make these modifications?

A. Testamentary Trust
B. Living Will
C. Codicil
D. Power of Attorney

Answer 7

C. Codicil

G.56 Estate and incapacity planning documents

Question 8

Lisa is reviewing her estate planning documents with her financial planner, Michael. Michael comes across a clause in Lisa’s will that declares this document as her final and ultimate declaration regarding the distribution of her assets upon her death. What is the term commonly used for this clause in a will?

A. Codicil
B. Residuary clause
C. Per stripes
D. Preamble

Answer 8

D. Preamble

G.56 Estate and incapacity planning documents

Question 9

Julia recently reviewed her grandmother’s will and found out that she has been named to receive a beach house upon her grandmother’s passing. What term best describes Julia’s designation in the will?

A. Executor
B. Beneficiary
C. Devisee
D. Trustee

Answer 9

C. Devisee

G.56 Estate and incapacity planning documents