The prolonged and expensive disability of a family wage earner is often called a working death.

·        Question 1

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	All living trusts are revocable.
	Selected Answer:  True Answers: True  False

·        Question 2

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	A form of joint ownership that may exist only between husband and wife is
	Selected Answer: c.  tenancy by the entirety. Answers: a.  joint tenancy without right of survivorship. b.  joint tenancy. c.  tenancy by the entirety. d.  joint tenancy with right of survivorship. e.  tenancy in common.

·        Question 3

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	Mental capacity requires an individual to be at least 21.
	Selected Answer:  False Answers: True  False

·        Question 4

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	The appointment clause affirms that the will in question was really made out by the deceased.
	Selected Answer:  False Answers: True  False

·        Question 5

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	The federal estate tax applies to certain property transfers made during a person's lifetime.
	Selected Answer:  True Answers:  True False

·        Question 6

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	A will should be destroyed after a codicil is written.
	Selected Answer:  False Answers: True  False

·        Question 7

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	This situation calls especially for an estate plan based on the people planning perspective.
	Selected Answer: d.  Working couple with disabled child Answers: a.  Married man with no dependents b.  Mother and daughter, independent, ages 65 and 43, share housing c.  Single person, no property d.  Working couple with disabled child e.  Single person, no dependents, some property

·        Question 8

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	Which of the following is not a section of the last will and testament?
	Selected Answer: a.  Contest and dispose clause Answers: a.  Contest and dispose clause b.  Direction of payments c.  Simultaneous death clause d.  Appointment clause e.  Execution and attestation clause

·        Question 9

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	In most states, you must be at least ____ to make a will.
	Selected Answer: d.  18 Answers: a.  21 b.  15 c.  25 d.  18 e.  16

·        Question 10

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	A will is revoked if a second legitimate will is created.
	Selected Answer:  True Answers:  True False

·        Question 11

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	Why does an estate "break up"?
	Selected Answer: e.  All of these Answers: a.  Death-related costs b.  Inflation c.  Improper use of vehicles of transfer d.  Lack of liquidity e.  All of these

·        Question 12

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	The probate estate
	Selected Answer: d.  all of these. Answers: a.  consists of real property. b.  consists of personal property. c.  is regulated by intestate laws if you have no valid will. d.  all of these. e.  none of these.

·        Question 13

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	Minors can handle large sums of money and property.
	Selected Answer:  False Answers: True  False

·        Question 14

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	The taxable estate is less than the adjusted gross estate.
	Selected Answer:  False Answers:  True False

·        Question 15

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	A will may be invalid if the testator was under undue influence of another person.
	Selected Answer:  True Answers:  True False

·        Question 16

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	The appointment clause in a will determines the county that will have legal jurisdiction.
	Selected Answer:  True Answers: True  False

·        Question 17

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	The first step in the estate planning process is to
	Selected Answer: e.  assess your family situation and set estate planning goals. Answers: a.  designate beneficiaries of your estate's assets. b.  gather comprehensive and accurate data. c.  list all assets and determine the ownership and value of your estate. d.  estimate transfer costs. e.  assess your family situation and set estate planning goals.

·        Question 18

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	Maxine's estate is worth $600,000. It will not be subject to federal estate taxes.
	Selected Answer:  True Answers:  True False

·        Question 19

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	Which of the following forms of ownership does not have rights of survivorship?
	Selected Answer: e.  Both a and d Answers: a.  Community property b.  Joint tenancy c.  Tenants by the entirety d.  Tenancy in common e.  Both a and d

·        Question 20

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	Liquidity is important in an estate to pay for death costs and possible taxes.
	Selected Answer:  True Answers:  True False

·        Question 21

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	The best choice for a trustee is a family member.
	Selected Answer:  False Answers: True  False

·        Question 22

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	The majority of Americans have valid wills.
	Selected Answer:  False Answers: True  False

·        Question 23

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	The living will states
	Selected Answer: c.  duration of medical treatments. Answers: a.  agent may make health care decisions if you are unable to do so. b.  while alive you and only you may make changes to your will. c.  duration of medical treatments. d.  distribution of assets while alive. e.  all of these.

·        Question 24

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	The federal estate tax must be paid within six months of the decedent's death.
	Selected Answer:  False Answers: True  False

·        Question 25

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	The prolonged and expensive disability of a family wage earner is often called a working death.
	Selected Answer:  False Answers: True  False