Module 9 Quiz Flashcards
Which of the following terms is NOT properly associated with structuring a will?
Intestate
The purpose of a codicil is to _____.
Amend an existing will
Which of these is an advantage of creating a will?
It can be used to establish a testamentary trust
Which of the following accurately describes a disadvantage of a will?
In common law states, a surviving spouse may be entitled to take more property than the spouse is specifically given through a will
Which of the following statements regarding the characteristics of intestate succession laws, including state intestacy statutes, is CORRECT?
If there is a surviving spouse and/or children, it is unlikely that other blood relatives of the decedent will receive any of the decedent’s property
Which of the following is considered community property?
A parcel of real estate, acquired after the marriage with joint funds, titled solely in the husband’s name
Which of the following statements regarding property held as tenants by the entirety is CORRECT?
The interest of a deceased tenant passes y right of survivorship outside of the probate process
Which of the following allows for an unlimited deduction for gift and estate tax purposes?
Transfer from a U.S. citizen spouse to a U.S. citizen spouse and a qualified charity
Which of the following statements regarding property held in a custodial account (UTMA or UGMA) is CORRECT?
A custodial account is generally less costly to create than a trust
Which of the following statements regarding the federal gift tax annual exclusion is CORRECT?
The annual exclusion is generally only allowed for gifts of a present interest
Which of the following is a medical proxy that authorizes another to make health care decisions on an individual’s behalf?
Durable power of attorney for health care
Which of the following statements regarding estate planning is CORRECT?
Titling of assets is an important part of the estate planning process
Which of these statements concerning the $16,000 (2022) annual gift tax exclusion amount is CORRECT?
One may gift up to $16,000 to each of an unlimited number of individuals and still be able to claim an exclusion from gift taxes
Which of these is an advantage of trusts when planning for incapacity?
Trusts and the authority of a trustee are routinely accepted by financial institutions
All of the statements regarding trusts are CORRECT except _____.
An irrevocable trust prohibits the grantor from terminating the trust without the approval of the trustee
Which of these represents an advantage of a will?
May reduce estate taxes by making transfers that qualify for the charitable deduction
Which of the following assets would NOT receive either a full or partial basis step up (or step down) in an estate?
Stock held in a traditional IRA account
Which of these statements regarding trusts is CORRECT?
The same person can be the grantor, trustee, and beneficiary of a trust
Which of these statements regarding federal gift and estate taxes is CORRECT?
The federal gift and estate tax share a common tax rate table
Which of these are common types of custodial accounts for minors?
I. DSUE
II. UGMA
III. UTMA
II. UGMA
III. UTMA
Which of the following is a characteristic of the probate process?
Time consuming
Henry had a will drafted in North Carolina and has now moved to Alabama. Which of the following statements regarding his will is true?
His will is valid in Alabama, but Alabama state statutes may interpret some sections differently than North Carolina
Which of the following statements regarding intestate succession statutes is CORRECT?
Intestate succession statutes favor spouses and blood relatives
Which of the following accurately describes property owned as tenants in common?
Each tenant can possess a different percentage of ownership
Which of the following statements regarding a buy-sell agreement is CORRECT?
It is used to transfer a business interest at the death of an owner
Which of the following statements regarding Medicaid planning is CORRECT?
To be eligible for Medicaid, an applicant must meet both medical and financial criteria
Which of these does NOT describe a method of making a gift?
Bequest
Which of the following acts regarding digital assets addresses fiduciary access to electronic communications such email and texts?
Revised Uniform Fiduciary Access to Digital Assets Act (RUFDAA)
Which of the following statements regarding the generation-skipping transfer tax is CORRECT?
The tax is imposed when property is transferred to a skip person
Which of these statements about estate planning documents is CORRECT?
A durable power of attorney is effective even after the principal’s incapacity
