FIN 386 Exam 1 Quizzes With Complete Solutions
Which of the following advisors can play an advisory role on the estate
planning team?
a. CPAs
b. Financial Planners
c. Attorneys - ANSWER all of the above
John has decided not to prepare an estate plan because he thinks the
costs are too high. All of the following are risks of not having an estate plan
EXCEPT:
a. John's car may not be transferred to his mother as he wishes
b. Johns IRA will not be paid to his beneficiary
c. John's estate could incur extra transfer taxes
d. Johns current wife may not provide for his children from a prior marriage
- ANSWER b. Johns IRA will not be paid to his beneficiary
estate planning goals - ANSWER 1. minimize transfer taxes
2. fulfilling clients healthcare decisions
3. providing liquidity at death
The following are transfer costs associated with estate planning EXCEPT:
1. attorney fee for document preparation
2. Property taxes on inherited property
3. costs of retitling assets
4. estate and inheritance taxes - ANSWER property taxes on inherited
property
A decedents property can be subject to ancillary probate if:
, a. decedent is a resident of Arizona and owns a real property interest in
JTWROS property in Utah
b. decedent is a resident of AZ but owns property in Utah titled as tenant in
common
c. decedent is a resident of AZ and the property is located in AZ
d. decedent was a resident in a community property state - ANSWER
decedent is a resident of AZ but owns property in Utah titled as tenant in
common
Miguel and Maria (siblings) purchase a vacation condo for $300,000.
Miguel expects to use it 70% of the time and Sara 30% of the time. Miguel
contributes $210,000. The ownership percentage equals their contribution
percentage. How must the property be titled to reflect their ownership
interests? - ANSWER Tenancy in Common
-
Tenancy by the entirety is a property titling that exists between? -
ANSWER spouses
Which of the following states is not a community property state?
a. Arizona
b. California
c. Illinois
d. Wisconsin - ANSWER illinois
Five siblings own a vacation property. Which form of property ownership
title must they use? - ANSWER Tenancy in common
Dick and Jane are not married and own a house as Joint Tenants with
Rights of Survivorship. Dick contributed $100,000 and Jane contributed
$50,000 towards the purchase price. The house is currently worth
$597,928 and each of them has a 50% interest in the property. If Jane died
today, what amount of the value would be included in her gross estate? -
ANSWER $199,309
Jane contributed 1/3 of the purchase price>
$597,928 * 1/3
Which of the following advisors can play an advisory role on the estate
planning team?
a. CPAs
b. Financial Planners
c. Attorneys - ANSWER all of the above
John has decided not to prepare an estate plan because he thinks the
costs are too high. All of the following are risks of not having an estate plan
EXCEPT:
a. John's car may not be transferred to his mother as he wishes
b. Johns IRA will not be paid to his beneficiary
c. John's estate could incur extra transfer taxes
d. Johns current wife may not provide for his children from a prior marriage
- ANSWER b. Johns IRA will not be paid to his beneficiary
estate planning goals - ANSWER 1. minimize transfer taxes
2. fulfilling clients healthcare decisions
3. providing liquidity at death
The following are transfer costs associated with estate planning EXCEPT:
1. attorney fee for document preparation
2. Property taxes on inherited property
3. costs of retitling assets
4. estate and inheritance taxes - ANSWER property taxes on inherited
property
A decedents property can be subject to ancillary probate if:
, a. decedent is a resident of Arizona and owns a real property interest in
JTWROS property in Utah
b. decedent is a resident of AZ but owns property in Utah titled as tenant in
common
c. decedent is a resident of AZ and the property is located in AZ
d. decedent was a resident in a community property state - ANSWER
decedent is a resident of AZ but owns property in Utah titled as tenant in
common
Miguel and Maria (siblings) purchase a vacation condo for $300,000.
Miguel expects to use it 70% of the time and Sara 30% of the time. Miguel
contributes $210,000. The ownership percentage equals their contribution
percentage. How must the property be titled to reflect their ownership
interests? - ANSWER Tenancy in Common
-
Tenancy by the entirety is a property titling that exists between? -
ANSWER spouses
Which of the following states is not a community property state?
a. Arizona
b. California
c. Illinois
d. Wisconsin - ANSWER illinois
Five siblings own a vacation property. Which form of property ownership
title must they use? - ANSWER Tenancy in common
Dick and Jane are not married and own a house as Joint Tenants with
Rights of Survivorship. Dick contributed $100,000 and Jane contributed
$50,000 towards the purchase price. The house is currently worth
$597,928 and each of them has a 50% interest in the property. If Jane died
today, what amount of the value would be included in her gross estate? -
ANSWER $199,309
Jane contributed 1/3 of the purchase price>
$597,928 * 1/3
