FHCE 4220 Estate Planning Exam 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Will Allows the testator to control the distribution his property at death.
Will Avoids the state's intestacy law distribution scheme
Intestacy The condition resulting from one's dying not having made a valid will.
Testate Having made and left a valid will.
Advantages of a properly prepared Will Permits the selection of an executor/executrix as the decedent's personal
representative to administer the estate
Provides for the orderly transfer of assets that are not automatically transferred at
death by some other means
Permits the designation of guardian for minors and or dependents
Permits the transfer of assets to charity (is not possible in intestacy)
A will can provide for the utilization of the unlimited marital deduction
A will can provide for disinheritance of unworthy heirs A will can help to minimize
the estate tax burden
A will can direct the estate's share of any tax burden to be paid as well as sources
of funds to be used to pay such taxes
Holographic Will A will written entirely by the testator with his own hand.
No witnesses required
Nuncupative Wills (oral) An oral dying declaration made before sufficient witnesses.
Not valid in all states.
Witnesses must not have any interest in testator's property.
Statutory Will a formal will on a preprinted form
Mutual or Reciprocal Wills Two identical wills leaving all assets to the other (usually spouses)
Sometimes referred to as - Sweetheart wills
Joint Will One will for two persons, usually husband and wife
Simple Will A will that leaves everything to the spouse.
No estate planning needed.
Complex Will Involves estate planning.
Leaves property as tax-efficiently as possible.
, Heir A person who inherits another's belongings.
Blood relative.
Inherits under intestacy laws
Legatee One who inherits personal property under a will.
May also be a charity or business.
Only valid with a will.
Devisee One who inherits real estate under a will.
Only valid with a will.
The Introductory Clause Identifies testator, testator's residence, state of domicile, and next of kin.
The Declaration Clause Identifies document as last will and testament of testator
Revokes all previous wills and codicils of testator
The Bequests Clause Directs specific property to be passed to others
The Residuary Clause The clause in a will that disposes of all of the testator's property not otherwise
distributed
Guardianship Clause Names the guardian for minors or other legal dependents
Appointments and Powers Clause Clause directing payment of debts and taxes (includes the sources from which to
pay them)
Attestation Clause A provision at end of the document signed by the witnesses as authentication of
testator's will
Per Stripes Directs equal shares to each member of a specific tier or class of relatives
Per Capita Based on the number of beneficiaries living at decedent's death
Revoking a Will By destroying the old will, or create a new will specifically revoking the old one
Condicil An amendment to a will
Side Instruction Letter Also known as a personal instruction letter, details the testator's wishes regarding
the disposition of tangible possessions (household goods), the disposition of the
decedent's body, and funeral arrangements. A side instruction letter is not legally
binding, but generally followed.
power of attorney a legal document authorizing someone to act on your behalf
Durability Feature Power remains in effect even if the principal becomes incapacitated or disabled
CORRECT ANSWERS
Will Allows the testator to control the distribution his property at death.
Will Avoids the state's intestacy law distribution scheme
Intestacy The condition resulting from one's dying not having made a valid will.
Testate Having made and left a valid will.
Advantages of a properly prepared Will Permits the selection of an executor/executrix as the decedent's personal
representative to administer the estate
Provides for the orderly transfer of assets that are not automatically transferred at
death by some other means
Permits the designation of guardian for minors and or dependents
Permits the transfer of assets to charity (is not possible in intestacy)
A will can provide for the utilization of the unlimited marital deduction
A will can provide for disinheritance of unworthy heirs A will can help to minimize
the estate tax burden
A will can direct the estate's share of any tax burden to be paid as well as sources
of funds to be used to pay such taxes
Holographic Will A will written entirely by the testator with his own hand.
No witnesses required
Nuncupative Wills (oral) An oral dying declaration made before sufficient witnesses.
Not valid in all states.
Witnesses must not have any interest in testator's property.
Statutory Will a formal will on a preprinted form
Mutual or Reciprocal Wills Two identical wills leaving all assets to the other (usually spouses)
Sometimes referred to as - Sweetheart wills
Joint Will One will for two persons, usually husband and wife
Simple Will A will that leaves everything to the spouse.
No estate planning needed.
Complex Will Involves estate planning.
Leaves property as tax-efficiently as possible.
, Heir A person who inherits another's belongings.
Blood relative.
Inherits under intestacy laws
Legatee One who inherits personal property under a will.
May also be a charity or business.
Only valid with a will.
Devisee One who inherits real estate under a will.
Only valid with a will.
The Introductory Clause Identifies testator, testator's residence, state of domicile, and next of kin.
The Declaration Clause Identifies document as last will and testament of testator
Revokes all previous wills and codicils of testator
The Bequests Clause Directs specific property to be passed to others
The Residuary Clause The clause in a will that disposes of all of the testator's property not otherwise
distributed
Guardianship Clause Names the guardian for minors or other legal dependents
Appointments and Powers Clause Clause directing payment of debts and taxes (includes the sources from which to
pay them)
Attestation Clause A provision at end of the document signed by the witnesses as authentication of
testator's will
Per Stripes Directs equal shares to each member of a specific tier or class of relatives
Per Capita Based on the number of beneficiaries living at decedent's death
Revoking a Will By destroying the old will, or create a new will specifically revoking the old one
Condicil An amendment to a will
Side Instruction Letter Also known as a personal instruction letter, details the testator's wishes regarding
the disposition of tangible possessions (household goods), the disposition of the
decedent's body, and funeral arrangements. A side instruction letter is not legally
binding, but generally followed.
power of attorney a legal document authorizing someone to act on your behalf
Durability Feature Power remains in effect even if the principal becomes incapacitated or disabled
