Module 11 (Planning For Special Circumstances)

Question 1

Over ____% of marriages end in divorce.

Answer 1

50%

Question 2

Divorce rates have steadily ______________ over the last 10 years.

Answer 2

decreased

Question 3

Which group are more likely to divorce, younger couples or older couples?

Answer 3

Younger couples

Question 4

When a diverse the occurs your trusts, wills, and titles to your properties must be____________.

Answer 4

reviewed.

Question 5

What is a QDRO?

Answer 5

A court initiated document that allows a participant’s retirement funds to be directed to another payee.

Question 6

Social Security benefits are available if you’ve been married ____ years or more.

Answer 6

10

Question 7

Alimony or separate maintenance payments _____ tax deductible by the payer.

Answer 7

are

Question 8

Are alimony or separate maintenance payments tax deductible in the gross income of the recipient?

Answer 8

No

Question 9

Child-support is ____ tax deductible by the payer.

Answer 9

not

Question 10

If payments are reduced based on a child reaching a certain age, marrying, dying, or leaving school, those payments will be considered…

Answer 10

child support.

Question 11

If you have a written divorce or separation agreement will your alimony be considered tax-deductible?

Answer 11

Yes

Question 12

If payments are made in a form that’s not cash to your spouse, will your alimony be considered tax-deductible?

Answer 12

No

Question 13

If your payments are designed as child-support, will your alimony be considered tax-deductible?

Answer 13

No

Question 14

If your payments cease because your spouse dies, will your alimony be considered tax-deductible?

Answer 14

Yes

Question 15

If you and your spouse live together or file joint income tax returns, will your alimony be considered tax-deductible?

Answer 15

No

Question 16

Alimony payments will be considered “___________” if they violate the front loading-rules.

Answer 16

excess

Question 17

Front-loading rules are triggered if there’s a drop of more than $________ in alimony in either the second or the third year after a divorce.

Answer 17

$15,000

Question 18

The spouse that is paying alimony must report income in the third year of paying, and the recipient will receive a…

Answer 18

deduction.

Question 19

If a life insurance policy’s transferred follow a divorce, any subsequent premiums paid by the transfer are…

Answer 19

tax-deductible.

Question 20

If a life insurance policy is transferred to a spouse after a divorce, the paying spouse must report premiums paid as…

Answer 20

taxable income.

Question 21

If the policy is not transferred, but the spouse is the names beneficiary the paid premiums are…

Answer 21

not deductible on income taxes a alimony.

Question 22

Medical expenses are reduced by _____% when you file your taxes.

Answer 22

7.5

Question 23

Cost for attending a special school are considered…

Answer 23

medical expenses.

Question 24

A school teaching braille or lip reading, military school for mentally/physically handicapped students, boarding schools suggested by psychiatrist, or a school with a special curriculum are considered…

Answer 24

special schools.

Question 25

For a parent to claim dependency exemption for a child, the child must a US citizen or under age ____ or under age _____ and a full-time student.

Answer 25

19 | 24

Question 26

In order for a parent to claim the dependency exemption for a child, the child must not have filed a...

Answer 26

joint income tax return.

Question 27

For a parent to claim the dependency exemption for a child, the child must have lived with the parent for more than...

Answer 27

half the year.

Question 28

For a parent to claim a dependency exemption for child, the child can not have paid more than half of their own...

Answer 28

support.

Question 29

A severely _____________ can be claimed by a parent for the dependency exemption regardless of their age.

Answer 29

disabled child

Question 30

Expenses for ___________________ can be claimed on their taxes as expenses used to enable them to be gainfully employed.

Answer 30

babysitting or daycare

Question 31

In order to receive "dependent care credit" an individual must be supplying shelter for a dependent under the age of ____ or a spouse who is __________________.

Answer 31

13 | physically or mentally he handicap.

Question 32

"Dependent care credit" is limited up to $_________ for one qualifying individual or $_________ for two qualifying individuals.

Answer 32

$3,000 | $6,000

Question 33

"Dependent care credit" is also available for households with a spouse that earns a_________.

Answer 33

lower amount of income.

Question 34

What is the percentage range for calculating the "dependent care credit"?

Answer 34

20-35%

Question 35

The "adoption credit" is phased out for...

Answer 35

upper income taxpayers.

Question 36

If adopting a special needs child, you can receive ___________ regardless of how much you actually spend during the year.

Answer 36

full credit

Question 37

Name the 3 qualified adoption expenses.

Answer 37

Legal Attorney fees Court costs

Question 38

A _________________ trust is used to protect assets of someone who is expected to be in a long-term disability condition.

Answer 38

special-needs

Question 39

A special needs trust allows beneficiaries to receive...

Answer 39

Medicaid, SSI, and Social Security disability income.

Question 40

Trust assets cannot be reached by the government for...

Answer 40

reimbursement.

Question 41

Language in a trust prohibits trust principles from being used in place of_______________.

Answer 41

government benefits.

Question 42

What is the most widely used special-needs trust for estate planning?

Answer 42

Family Special Needs Trust

Question 43

This type of special needs trust is used by non-family members.

Answer 43

Third-party special needs trust

Question 44

This type of special needs trust is funded by lawsuit money.

Answer 44

Settlement special needs trust

Question 45

This type of special needs trust is ran by nonprofit organization's that uses a combine set of assets from various sources to increase investment returns.

Answer 45

Pooled special needs trust

Question 46

A _______________ is a written document where the principal grants the attorney-in-fact the ability to act on the principles behalf.

Answer 46

power of attorney

Question 47

``` Expedite Valley for Medicare Arrange for in-home care Hire necessary healthcare professionals Employee companions But cannot be used to control the property ```

Answer 47

Durable Power of attorney

Question 48

A ________________ is an arrangement in which a court-appointed guardian cares for a ward.

Answer 48

Guardianship

Question 49

_______________ takes care of the ward's property.

Answer 49

Conservator

Question 50

The scope of the guardian's powers may be limited or...

Answer 50

broad.

Question 51

A guardianship can be time-consuming, expensive, and restrictive because the...

Answer 51

court is involved.

Question 52

What is more appropriate than a guardianship?

Answer 52

Power of attorney

Question 53

What are sometimes used to avoid judicial guardianship?

Answer 53

Advanced medical directives

Question 54

Divorced parents, blended families, single people, same sex couples, and adult children caring for their parents are considered...

Answer 54

Nontraditional households

Question 55

Less than ____% of US households consist of married couples with children.

Answer 55

25

Question 56

What is another alternative for unmarried couples who want to outline how their assets will be handled?

Answer 56

domestic partnership agreement

Question 57

Although some states recognize same-sex marriage, it is not recognized at the___________.

Answer 57

federal level.

Question 58

Because same-sex marriage is not recognized at the federal level, these couples are not eligible for...

Answer 58

Social Security benefits.

Question 59

For nontraditional household federal gift tax applies to lifetime transfers, but not transfers...

Answer 59

at death.

Question 60

Nontraditional households cannot get ___________ federal gift tax deduction's.

Answer 60

martial

Question 61

For nontraditional households, state inheritance taxes maybe due when transferring assets...

Answer 61

at death.

Question 62

State intestate laws do not leave property to...

Answer 62

unrelated parties.

Question 63

Individuals with nontraditional living arrangements are not able to protest a _____.

Answer 63

will.

Question 64

Individuals with nontraditional living arrangements may be denied...

Answer 64

hospital visitation.

Question 65

________________ are more likely to be asked about patient medical wishes if the individual is and a nontraditional living arrangement.

Answer 65

Blood relatives

Question 66

This is a strategy for unmarried partners where your property is titled as "joint tenants with rights of survivorship" to avoid probate.

Answer 66

Asset titling

Question 67

A "recovable living trust" is a strategy for unmarried partners that can...

Answer 67

Passes assets to a beneficiary without going through court probate.

Question 68

One strategy for unmarried partners is to have a life insurance. Which can be used to...

Answer 68

The lack of insurable interest