Page 1 of 23
WGU D363 Personal Finance PA EXAM QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS YEAR NEW!!
What is the benefit of naming a beneficiary to accounts?
a) The beneficiary is a co-owner of the account.
b) The beneficiary will pay lower legal fees to gain access to the account.
c) The beneficiary becomes executor of the deceased's will.
d) The account will not need to go through probate.
d) The account will not need to go through probate
Naming a beneficiary allows the institution to deliver the balance of the account to the chosen
person without going through probate
How does the partnership theory of marriage rights protect a spouse?
a) Current ownership of property and how it should be distributed after death is mutually
agreed upon by both spouses in a legal document.
b) Ownership of property acquired by one spouse during marriage is retained by that spouse
until it transfers to the other spouse upon death.
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,Page 2 of 23
c) Property acquired during marriage but in the name of only one partner becomes the
property of both spouses while both are still living.
d) Property acquired by one spouse through inheritance or gift becomes co-owned by the
other spouse by law.
c) Property acquired during marriage but in the name of only one partner becomes the
property of both spouses while both are still living.
Except for property acquired by gift or inheritance, all property acquired during the marriage is
owned by both spouses.
Loto wants to create a trust to leave his house to his nephew upon his death. His goal is to
reduce estate taxes for his nephew. Which type of trust has the grantor give up ownership
and control of the house while still alive?
a) Discretionary trust
b) Revocable living trust
c) Irrevocable living trust
d) Testamentary trust
c) Irrevocable living trust
A grantor gives up control of the property, the right to change beneficiaries, and the right to
change the trustee or trustees under this type of trust.
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, Page 3 of 23
Ahmed wants to leave the money in his checking account to his niece upon his death. He
wants his niece to get the money without having to go through a lengthy and expensive legal
process. He also does not want his niece to be able to access his account until his death.
Which type of transfer by contract should he choose?
a) Payable-upon-death
b) A valid will
c) Probate
d) Joint tenancy
a) Payable-Upon-Death
Including a payable-upon-death designation to an account ensures that the funds will easily
move to the designee upon the account owner's death, but it also ensures that the designee
cannot access the account until then.
Daniel wants to place his assets in a trust. He wants to protect his assets and also enable his
heirs to avoid probate court. He also wants to maintain control over his assets while he is
alive and wants the right to change or add trustees.
Which type of trust should Daniel choose to fulfill all of these requirements?
a) Revocable living trust
b) Discretionary trust
3
WGU D363 Personal Finance PA EXAM QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE THIS YEAR NEW!!
What is the benefit of naming a beneficiary to accounts?
a) The beneficiary is a co-owner of the account.
b) The beneficiary will pay lower legal fees to gain access to the account.
c) The beneficiary becomes executor of the deceased's will.
d) The account will not need to go through probate.
d) The account will not need to go through probate
Naming a beneficiary allows the institution to deliver the balance of the account to the chosen
person without going through probate
How does the partnership theory of marriage rights protect a spouse?
a) Current ownership of property and how it should be distributed after death is mutually
agreed upon by both spouses in a legal document.
b) Ownership of property acquired by one spouse during marriage is retained by that spouse
until it transfers to the other spouse upon death.
1
,Page 2 of 23
c) Property acquired during marriage but in the name of only one partner becomes the
property of both spouses while both are still living.
d) Property acquired by one spouse through inheritance or gift becomes co-owned by the
other spouse by law.
c) Property acquired during marriage but in the name of only one partner becomes the
property of both spouses while both are still living.
Except for property acquired by gift or inheritance, all property acquired during the marriage is
owned by both spouses.
Loto wants to create a trust to leave his house to his nephew upon his death. His goal is to
reduce estate taxes for his nephew. Which type of trust has the grantor give up ownership
and control of the house while still alive?
a) Discretionary trust
b) Revocable living trust
c) Irrevocable living trust
d) Testamentary trust
c) Irrevocable living trust
A grantor gives up control of the property, the right to change beneficiaries, and the right to
change the trustee or trustees under this type of trust.
2
, Page 3 of 23
Ahmed wants to leave the money in his checking account to his niece upon his death. He
wants his niece to get the money without having to go through a lengthy and expensive legal
process. He also does not want his niece to be able to access his account until his death.
Which type of transfer by contract should he choose?
a) Payable-upon-death
b) A valid will
c) Probate
d) Joint tenancy
a) Payable-Upon-Death
Including a payable-upon-death designation to an account ensures that the funds will easily
move to the designee upon the account owner's death, but it also ensures that the designee
cannot access the account until then.
Daniel wants to place his assets in a trust. He wants to protect his assets and also enable his
heirs to avoid probate court. He also wants to maintain control over his assets while he is
alive and wants the right to change or add trustees.
Which type of trust should Daniel choose to fulfill all of these requirements?
a) Revocable living trust
b) Discretionary trust
3
