Question 1

Joel is displeased with his son's lifestyle choices and,instead of dividing his estate,Joel wants to leave all of his property to his daughter,Marie,when he dies.Joel may

Accepted Answer

A)  not leave everything to his daughter and nothing to his son.If Joel tries to do this, his son can take a forced share of his father's estate.
B)  disinherit his son, but he must indicate in the will his reason for doing so.
C)  disinherit his son for any reason as long as Joel indicates in the will that the son was omitted on purpose.
D)  disinherit his son only if Joel leaves the son a nominal amount, such as $1.E) B) and D)
F) None of the above

Question 2

A later will revokes a prior will only if that revocation is clearly stated.

Accepted Answer

A) True 
 B)False

Question 3

Identify four ways a trust can be terminated.

Accepted Answer

A trust ends: (a)on the date indicated b...

Question 4

Per capita means each heir gets an equal share of an estate.

Accepted Answer

A) True 
 B)False

Question 5

Legal requirements for a will depend on state law,but generally include all but which of the following?

Accepted Answer

A)  A writing
B)  Signatures of at least three witnesses
C)  The testator's signature
D)  Witnesses who will not inherit under the willE) B) and D)
F) A) and D)

Question 6

The major disadvantage of a trust is

Accepted Answer

A)  expense.
B)  lack of privacy.
C)  an often lengthy probate process.
D)  lack of control.E) B) and D)
F) B) and C)

Question 7

Under the Uniform Anatomical Gift Act,

Accepted Answer

A)  an individual may indicate the desire to be an organ donor by putting a provision in his will.The provision will take effect after probate of the will.
B)  the willingness to be an organ donor may be indicated by signing an organ donation card in the presence of one disinterested witness.
C)  family members of a decedent have no right to make a gift of the decedent's organs if the decedent did not make an affirmative indication of the desire to be a donor during her lifetime.
D)  an effective donation may be made by an individual in a will or on a witnessed organ-donation card or by family members after the person's death as long as the person did not indicate a desire not to be a donor.E) A) and D)
F) B) and C)

Question 8

The only function of a will is to dispose of a person's property upon death.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following property is NOT affected by a will?

Accepted Answer

A)  life insurance
B)  personal property
C)  anatomical gifts
D)  individual bank accountsE) A) and B)
F) A) and C)

Question 10

Darcy buys a life insurance policy on her own life,under which she pays the annual premiums.The insurance is issued for a specific period,but is renewable for similar periods.Darcy is covered only as long as she makes the payments.There is no cash value portion to the policy.Darcy probably owns

Accepted Answer

A)  whole life insurance.
B)  key-person life insurance.
C)  term life insurance.
D)  an annuity.E) None of the above
F) All of the above

Question 11

Singleton,an eighty-year-old widower,remarried.The next day,he made a will leaving everything to his son,Joey.A week after his marriage,Singleton died.How will his estate be handled?

Accepted Answer

In a community property state,a spouse i...

Question 12

In order to travel extensively and not worry about handling her affairs,Lee transfers most of her assets into a trust,with her bank serving as trustee.She has created ________ trust.

Accepted Answer

A)  a travel
B)  a testamentary
C)  a constructive
D)  an inter vivosE) B) and C)
F) All of the above

Question 13

If Walter becomes incompetent to manage his affairs,

Accepted Answer

A)  his chosen attorney-in-fact can make decisions for him if he appointed the person in a durable power of attorney with a springing power to become effective upon Walter's incompetence.
B)  a court will allow an immediate family member to manage his affairs.
C)  his will becomes effective, and his executor or executrix will manage his business and personal decisions.
D)  his property will be placed in a trust until such time as he is able to manage his affairs himself.E) A) and D)
F) A) and C)

Question 14

Which of the following is generally covered under casualty insurance?

Accepted Answer

A)  Employee theft or embezzlement
B)  Disability
C)  Transportation insurance
D)  Vandalism to propertyE) A) and C)
F) B) and D)

Question 15

Under which of the following does the insurer promise to pay the insured a fixed yearly amount,as guaranteed income,after the insured attains a specified age?

Accepted Answer

A)  straight life policy
B)  whole life policy
C)  universal life policy
D)  deferred annuity contractE) A) and C)
F) A) and D)

Question 16

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Accepted Answer

A) True 
 B)False

Question 17

A trust created in a will is

Accepted Answer

A)  an inter vivos trust.
B)  a constructive trust.
C)  a testamentary trust.
D)  a probate trust.E) A) and B)
F) A) and C)

Question 18

The percentage of a decendent's estate that a spouse can claim is called a forced share.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following insurance policies continues for a stated period of time with the premiums increasing with the age of the insured?

Accepted Answer

A)  double indemnity
B)  term insurance
C)  annuity contract
D)  comprehensive insuranceE) A) and B)
F) A) and C)

Question 20

Discuss the differences between a will and a trust.

Accepted Answer

A will is an instrument which helps a pe...

Exam 44: Planning for the Future: Estates and Insurance

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

Correct AnswerverifiedShow Answer

Legal requirements for a will depend on state law,but generally include all but which of the following?

Correct AnswerverifiedShow Answer

Which of the following is generally covered under casualty insurance?

Correct AnswerverifiedShow Answer

Per capita means each heir gets an equal share of an estate.

Correct AnswerverifiedShow Answer

The only function of a will is to dispose of a person's property upon death.

Correct AnswerverifiedShow Answer

In order to travel extensively and not worry about handling her affairs,Lee transfers most of her assets into a trust,with her bank serving as trustee.She has created ________ trust.

Correct AnswerverifiedShow Answer

Darcy buys a life insurance policy on her own life,under which she pays the annual premiums.The insurance is issued for a specific period,but is renewable for similar periods.Darcy is covered only as long as she makes the payments.There is no cash value portion to the policy.Darcy probably owns

Correct AnswerverifiedShow Answer

Under which of the following does the insurer promise to pay the insured a fixed yearly amount,as guaranteed income,after the insured attains a specified age?

Correct AnswerverifiedShow Answer

Which of the following property is NOT affected by a will?

Correct AnswerverifiedShow Answer

A later will revokes a prior will only if that revocation is clearly stated.

Correct AnswerverifiedShow Answer

The major disadvantage of a trust is

Correct AnswerverifiedShow Answer

If Walter becomes incompetent to manage his affairs,

Correct AnswerverifiedShow Answer

Which of the following insurance policies continues for a stated period of time with the premiums increasing with the age of the insured?

Correct AnswerverifiedShow Answer

Under the Uniform Anatomical Gift Act,

Correct AnswerverifiedShow Answer

Discuss the differences between a will and a trust.

Correct AnswerverifiedA will is an instrument which helps a pe...View AnswerShow Answer

A trust created in a will is

Correct AnswerverifiedShow Answer

The percentage of a decendent's estate that a spouse can claim is called a forced share.

Correct AnswerverifiedShow Answer

Identify four ways a trust can be terminated.

Correct AnswerverifiedA trust ends: (a)on the date indicated b...View AnswerShow Answer

Singleton,an eighty-year-old widower,remarried.The next day,he made a will leaving everything to his son,Joey.A week after his marriage,Singleton died.How will his estate be handled?

Correct AnswerverifiedIn a community property state,a spouse i...View AnswerShow Answer

Joel is displeased with his son's lifestyle choices and,instead of dividing his estate,Joel wants to leave all of his property to his daughter,Marie,when he dies.Joel may

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A will is an instrument which helps a pe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A trust ends: (a)on the date indicated b...
View Answer

Correct Answer
verified
In a community property state,a spouse i...
View Answer

Correct Answer
verified