UNIT 11. Exam Estate Planning for
Investment Clients fully solved
Tenancy in common is a form of property ownership that
can be used only by a husband and wife.
has a right of survivorship feature.
will require probate upon the death of a tenant.
allows each tenant to sell his or her share only with the consent of the other. - correct answer
✔✔ will require probate upon the death of a tenant.
Property held in tenancy in common is subject to probate.
An investment professional who is not an attorney is engaged in the unauthorized practice of
law when he or she counsels a client regarding the
rules of the federal estate tax.
meaning of estate planning terms.
advisability of having a will.
validity of a living will. - correct answer ✔✔ validity of a living will.
, Determining the validity of a living will is not an allowable activity for an investment
professional.
All of the following assets would be included in a decedent's gross estate except
an irrevocable trust established ten years before his death; decedent was the trustee, and an
income beneficiary at his death.
an irrevocable trust established by the decedent five years before his death that named the
decedent as the sole remainder beneficiary after the ten-year trust term.
a power of appointment held by the decedent over a trust established by the decedent's
brother that allowed the decedent to use the power to appoint the trust property to anyone the
decedent chose.
the decedent's vested interest in a single life annuity on the decedent's life. - correct answer
✔✔ the decedent's vested interest in a single life annuity on the decedent's life.
Because no payments will be made to a survivor as a result of the decedent owning this asset,
there is nothing to include in the decedent's gross estate.
A tax disadvantage of making a lifetime gift rather than a transfer at death is that
the gift tax is tax exclusive.
the annual exclusion is available only for present interest gifts.
the marital deduction is larger for estate taxes.
Investment Clients fully solved
Tenancy in common is a form of property ownership that
can be used only by a husband and wife.
has a right of survivorship feature.
will require probate upon the death of a tenant.
allows each tenant to sell his or her share only with the consent of the other. - correct answer
✔✔ will require probate upon the death of a tenant.
Property held in tenancy in common is subject to probate.
An investment professional who is not an attorney is engaged in the unauthorized practice of
law when he or she counsels a client regarding the
rules of the federal estate tax.
meaning of estate planning terms.
advisability of having a will.
validity of a living will. - correct answer ✔✔ validity of a living will.
, Determining the validity of a living will is not an allowable activity for an investment
professional.
All of the following assets would be included in a decedent's gross estate except
an irrevocable trust established ten years before his death; decedent was the trustee, and an
income beneficiary at his death.
an irrevocable trust established by the decedent five years before his death that named the
decedent as the sole remainder beneficiary after the ten-year trust term.
a power of appointment held by the decedent over a trust established by the decedent's
brother that allowed the decedent to use the power to appoint the trust property to anyone the
decedent chose.
the decedent's vested interest in a single life annuity on the decedent's life. - correct answer
✔✔ the decedent's vested interest in a single life annuity on the decedent's life.
Because no payments will be made to a survivor as a result of the decedent owning this asset,
there is nothing to include in the decedent's gross estate.
A tax disadvantage of making a lifetime gift rather than a transfer at death is that
the gift tax is tax exclusive.
the annual exclusion is available only for present interest gifts.
the marital deduction is larger for estate taxes.
