Chapter 1 A First Look At Estate Planning

Question 1

Are all states that aren’t community property States?

Answer 1

Common law

Rather surviving spouse automatically has a right to 50% of the decedents estate.

Question 2

Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin

All have what in common?

Answer 2

They are community property States

Question 3

Allow a spouse to wave statutory inheritance rights

Answer 3

A prenuptial agreement

Question 4

have no inheritance requirements for spouses.

Answer 4

community property

• Instead, spouses are protected by the rule that each spouse owns one-half of all property acquired by either spouse during marriage.

Question 5

assets acquired during the marriage are generally considered to be owned equally by both spouses, regardless of who purchased them or whose name is on the title.

• This system treats married couples as a single financial entity.

Answer 5

Community property states.

Question 8

Question 10

The principal drawback of a will

Answer 10

it must normally go through probate, a complicated and expensive court proceeding. Probate rarely provides any real benefit to your beneficiaries, or, indeed, to anyone, except the lawyers involved

Question 11

similar to a will in function, except that no probate or other court proceedings are required to turn property over to beneficiaries.

Answer 11

Living Trusts