Estate planning Exam #1 chapters 1-3
with verified answers
Estate Planning - correct answer ✔✔ the process of planning for the accumulation,
conservation, and distribution of an estate in a manner that most effectively accomplishes a
person's goals.
Estate - correct answer ✔✔ the rights, titles, or interests that a person, living or deceased, has
in property.
estate plan - correct answer ✔✔ provides personal protection and financial security to an
individual and his family.
Who needs an estate plan? - correct answer ✔✔ Individuals with estates that exceed
$5,430,000 in 2015
Closely held business owners
Individuals with charitable objectives
Property owners who own property in other states
Owners of fine art and collectibles
Six Steps in the Estate Planning Process - correct answer ✔✔ Establish and define the
relationship with a client
Gather client data
Analyze and evaluate a client's financial status
, Develop and present financial planning
recommendations
Implement financial planning recommendations
Monitor the plan
Establishing a Relationship with a Client - correct answer ✔✔ The financial planning practitioner
and the client must mutually determine the scope of engagement, which identifies the services
to be provided and each party's responsibilities in implementing the estate plan.
Gathering Client Data - correct answer ✔✔ The practitioner and the client mutually define the
client's personal and financial goals, needs, and priorities. The practitioner obtains sufficient
quantitative information and documents pertaining to the engagement.
Analyzing the Client's Financial Status - correct answer ✔✔ The planner must assess a client's
current and future financial situation to determine the likelihood of meeting his financial
planning and estate planning goals.
Developing Recommendations - correct answer ✔✔ A financial planner should work with a
client's estate planning attorney to develop alternatives to the existing estate plan in an effort to
reasonably meet the client's estate planning objectives and priorities.
Implementing the Recommendations - correct answer ✔✔ The client, the planner, and
members of the estate planning team determine implementation responsibilities for the plan.
Monitoring the Plan - correct answer ✔✔ The practitioner's role in monitoring the estate plan
must be clearly defined.
The plan might need to be revised if changes occur that render it or certain provisions
ineffective or outdated.
with verified answers
Estate Planning - correct answer ✔✔ the process of planning for the accumulation,
conservation, and distribution of an estate in a manner that most effectively accomplishes a
person's goals.
Estate - correct answer ✔✔ the rights, titles, or interests that a person, living or deceased, has
in property.
estate plan - correct answer ✔✔ provides personal protection and financial security to an
individual and his family.
Who needs an estate plan? - correct answer ✔✔ Individuals with estates that exceed
$5,430,000 in 2015
Closely held business owners
Individuals with charitable objectives
Property owners who own property in other states
Owners of fine art and collectibles
Six Steps in the Estate Planning Process - correct answer ✔✔ Establish and define the
relationship with a client
Gather client data
Analyze and evaluate a client's financial status
, Develop and present financial planning
recommendations
Implement financial planning recommendations
Monitor the plan
Establishing a Relationship with a Client - correct answer ✔✔ The financial planning practitioner
and the client must mutually determine the scope of engagement, which identifies the services
to be provided and each party's responsibilities in implementing the estate plan.
Gathering Client Data - correct answer ✔✔ The practitioner and the client mutually define the
client's personal and financial goals, needs, and priorities. The practitioner obtains sufficient
quantitative information and documents pertaining to the engagement.
Analyzing the Client's Financial Status - correct answer ✔✔ The planner must assess a client's
current and future financial situation to determine the likelihood of meeting his financial
planning and estate planning goals.
Developing Recommendations - correct answer ✔✔ A financial planner should work with a
client's estate planning attorney to develop alternatives to the existing estate plan in an effort to
reasonably meet the client's estate planning objectives and priorities.
Implementing the Recommendations - correct answer ✔✔ The client, the planner, and
members of the estate planning team determine implementation responsibilities for the plan.
Monitoring the Plan - correct answer ✔✔ The practitioner's role in monitoring the estate plan
must be clearly defined.
The plan might need to be revised if changes occur that render it or certain provisions
ineffective or outdated.
