Question 1

The second part of estate planning consists of:

Accepted Answer

A)   building your estate through savings.
B)   transferring your estate in the manner you have specified.
C)   deciding who should be your attorney.
D)   evaluating your assets and liabilities.
E)   Ensuring your retirement plan is complete.

Question 2

In estate planning, if you are married:

Accepted Answer

A)   you don't need much estate planning.
B)   your estate planning is rather easy.
C)   only your spouse should be concerned about estate planning.
D)   your situation becomes more complex, and the need for orderliness and clarity becomes greater.
E)   your will takes care of most of estate planning problems. D

Question 3

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a

Accepted Answer

A)   codicil.
B)   power of attorney.
C)   proxy.
D)   rider.
E)   trust.

Question 4

An ethical will is

Accepted Answer

A)   not a legally binding document, however it can help with estate planning.
B)   also called a holographic will.
C)   part of a formal will.
D)   also called an intestate will.
E)   a legally binding document.

Question 5

A guardian is a person who assumes the responsibilities of providing the children with personal care and of managing the estate for them.

Accepted Answer

A) True 
 B)False

Question 6

A ______________ describes the legal directives each province sanctions with respect to your medical care wishes, should you become unable to communicate them

Accepted Answer

A)   formal will
B)   holographic will
C)   legacies clause
D)   living will
E)   testimonium and attestation clauses

Question 7

A trustee is a person or an institution that holds property for the benefit of someone else under a trust agreement.

Accepted Answer

A) True 
 B)False

Question 8

Estate planning has two parts. The first part consists of

Accepted Answer

A)   deciding on who is going to get what.
B)   transferring your estate in the manner you have specified.
C)   building your estate through savings, investments, and insurance.
D)   evaluating your assets and liabilities.
E)   Meeting your financial planner.

Question 9

A trust established by your will that becomes effective upon your death is called a(n)  ____________ trust.

Accepted Answer

A)   testamentary
B)   living
C)   general
D)   formal
E)   insurance

Question 10

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Accepted Answer

A) True 
 B)False

Question 11

A testamentary trust is a trust established by your will that becomes effective upon your death.

Accepted Answer

A) True 
 B)False

Question 12

Your executor can be a family member, a friend, an attorney, an accountant, or the trust department of a bank.

Accepted Answer

A) True 
 B)False

Question 13

Estate planning is not a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is correct regarding wills?

Accepted Answer

A)   Only married people need a will.
B)   Only married people with dependents need a will.
C)   Only the rich with a considerable estate needs a will.
D)   Every adult needs a will.
E)   Only senior citizens need a will.

Question 15

If your assets such as life insurance, annuities, or RRSPs already have a named beneficiary, they will be transferred independently of your will.

Accepted Answer

A) True 
 B)False

Question 16

A holographic will should be witnessed by at least two persons.

Accepted Answer

A) True 
 B)False

Question 17

If you never married, you don't need to organize your personal and financial documents.

Accepted Answer

A) True 
 B)False

Question 18

At death, it is necessary to _____________.

Accepted Answer

A)   to file a final (terminal)  tax return.
B)   pay estate taxes in Canada.
C)   report only the earned income of the deceased up to the date of death.
D)   report only the partial value of any registered assets.
E)   ensure your survivors have money. A

Question 19

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Accepted Answer

A)   tenants in common
B)   tenancy by the entirety
C)   joint tenancy
D)   tenancy by default
E)   tenants by birth C

Question 20

The legal procedure of proving a valid or invalid will is called a _________________

Accepted Answer

A)   lawsuit
B)   trust
C)   probate
D)   rider
E)   codicil

Exam 15: Estate Planning

The second part of estate planning consists of:

Correct AnswerverifiedShow Answer

In estate planning, if you are married:

Correct AnswerverifiedD

A legal arrangement through which your assets are held by a trustee for your benefit or that of your beneficiaries is called a

Correct AnswerverifiedShow Answer

An ethical will is

Correct AnswerverifiedShow Answer

A guardian is a person who assumes the responsibilities of providing the children with personal care and of managing the estate for them.

Correct AnswerverifiedShow Answer

A ______________ describes the legal directives each province sanctions with respect to your medical care wishes, should you become unable to communicate them

Correct AnswerverifiedShow Answer

A trustee is a person or an institution that holds property for the benefit of someone else under a trust agreement.

Correct AnswerverifiedShow Answer

Estate planning has two parts. The first part consists of

Correct AnswerverifiedShow Answer

A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.

Correct AnswerverifiedShow Answer

A living or inter vivos trust is a property management arrangement that you establish while you are alive.

Correct AnswerverifiedShow Answer

A testamentary trust is a trust established by your will that becomes effective upon your death.

Correct AnswerverifiedShow Answer

Your executor can be a family member, a friend, an attorney, an accountant, or the trust department of a bank.

Correct AnswerverifiedShow Answer

Estate planning is not a definite plan for the administration and disposition of one's property during one's lifetime and at one's death.

Correct AnswerverifiedShow Answer

Which of the following statements is correct regarding wills?

Correct AnswerverifiedShow Answer

If your assets such as life insurance, annuities, or RRSPs already have a named beneficiary, they will be transferred independently of your will.

Correct AnswerverifiedShow Answer

A holographic will should be witnessed by at least two persons.

Correct AnswerverifiedShow Answer

If you never married, you don't need to organize your personal and financial documents.

Correct AnswerverifiedShow Answer

At death, it is necessary to _____________.

Correct AnswerverifiedA

Under what type of ownership is the property considered owned 50-50 for estate tax purposes and passed automatically to your spouse at your death?

Correct AnswerverifiedC

The legal procedure of proving a valid or invalid will is called a _________________

Correct AnswerverifiedShow Answer

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