Module 9 Quiz

Question 1

Which of the following terms is NOT properly associated with structuring a will?

Answer 1

Intestate

Question 2

The purpose of a codicil is to _____.

Answer 2

Amend an existing will

Question 3

Which of these is an advantage of creating a will?

Answer 3

It can be used to establish a testamentary trust

Question 4

Which of the following accurately describes a disadvantage of a will?

Answer 4

In common law states, a surviving spouse may be entitled to take more property than the spouse is specifically given through a will

Question 5

Which of the following statements regarding the characteristics of intestate succession laws, including state intestacy statutes, is CORRECT?

Answer 5

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

Question 6

Which of the following is considered community property?

Answer 6

A parcel of real estate, acquired after the marriage with joint funds, titled solely in the husband’s name

Question 7

Which of the following statements regarding property held as tenants by the entirety is CORRECT?

Answer 7

The interest of a deceased tenant passes y right of survivorship outside of the probate process

Question 8

Which of the following allows for an unlimited deduction for gift and estate tax purposes?

Answer 8

Transfer from a U.S. citizen spouse to a U.S. citizen spouse and a qualified charity

Question 9

Which of the following statements regarding property held in a custodial account (UTMA or UGMA) is CORRECT?

Answer 9

A custodial account is generally less costly to create than a trust

Question 10

Which of the following statements regarding the federal gift tax annual exclusion is CORRECT?

Answer 10

The annual exclusion is generally only allowed for gifts of a present interest

Question 11

Which of the following is a medical proxy that authorizes another to make health care decisions on an individual’s behalf?

Answer 11

Durable power of attorney for health care

Question 12

Which of the following statements regarding estate planning is CORRECT?

Answer 12

Titling of assets is an important part of the estate planning process

Question 13

Which of these statements concerning the $16,000 (2022) annual gift tax exclusion amount is CORRECT?

Answer 13

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

Question 14

Which of these is an advantage of trusts when planning for incapacity?

Answer 14

Trusts and the authority of a trustee are routinely accepted by financial institutions

Question 15

All of the statements regarding trusts are CORRECT except _____.

Answer 15

An irrevocable trust prohibits the grantor from terminating the trust without the approval of the trustee

Question 16

Which of these represents an advantage of a will?

Answer 16

May reduce estate taxes by making transfers that qualify for the charitable deduction

Question 17

Which of the following assets would NOT receive either a full or partial basis step up (or step down) in an estate?

Answer 17

Stock held in a traditional IRA account

Question 18

Which of these statements regarding trusts is CORRECT?

Answer 18

The same person can be the grantor, trustee, and beneficiary of a trust

Question 19

Which of these statements regarding federal gift and estate taxes is CORRECT?

Answer 19

The federal gift and estate tax share a common tax rate table

Question 20

Which of these are common types of custodial accounts for minors?

I. DSUE
II. UGMA
III. UTMA

Answer 20

II. UGMA
III. UTMA

Question 21

Which of the following is a characteristic of the probate process?

Answer 21

Time consuming

Question 22

Henry had a will drafted in North Carolina and has now moved to Alabama. Which of the following statements regarding his will is true?

Answer 22

His will is valid in Alabama, but Alabama state statutes may interpret some sections differently than North Carolina

Question 23

Which of the following statements regarding intestate succession statutes is CORRECT?

Answer 23

Intestate succession statutes favor spouses and blood relatives

Question 24

Which of the following accurately describes property owned as tenants in common?

Answer 24

Each tenant can possess a different percentage of ownership

Question 25

Which of the following statements regarding a buy-sell agreement is CORRECT?

Answer 25

It is used to transfer a business interest at the death of an owner

Question 26

Which of the following statements regarding Medicaid planning is CORRECT?

Answer 26

To be eligible for Medicaid, an applicant must meet both medical and financial criteria

Question 27

Which of these does NOT describe a method of making a gift?

Answer 27

Bequest

Question 28

Which of the following acts regarding digital assets addresses fiduciary access to electronic communications such email and texts?

Answer 28

Revised Uniform Fiduciary Access to Digital Assets Act (RUFDAA)

Question 29

Which of the following statements regarding the generation-skipping transfer tax is CORRECT?

Answer 29

The tax is imposed when property is transferred to a skip person

Question 30

Which of these statements about estate planning documents is CORRECT?

Answer 30

A durable power of attorney is effective even after the principal’s incapacity