Fin 409 Exam 1 (Estate Planning
CSUF) questions with answers
Estate Planning Defined - correct answer ✔✔ Process of Accumulation, management,
conservation, and transfer of wealth considering legal, tax, and personal objectives
Decedent - correct answer ✔✔ The person who died
Heirs - correct answer ✔✔ People who inherit under state intestacy laws
Legatees - correct answer ✔✔ People or institutions who inherit under a valid will
transferor - correct answer ✔✔ The person who makes a transfer.
transferee - correct answer ✔✔ The person to whom a transfer is made.
donor - correct answer ✔✔ a person who gives a gift
donee - correct answer ✔✔ A person who receives a gift.
Effective transfer - correct answer ✔✔ decedent's assets are transferred based on his wishes
Efficient transfers - correct answer ✔✔ Transfer costs are minimized
Estate Planning Goals - correct answer ✔✔ Fulfill client's transfer wishes
, Maximize net assets to heirs
minimize the transfer taxes including:
Income tax issues
Gift tax
GST Tax
Estate Tax
State inheritance tax
Impediments to achieving estate planning goals - correct answer ✔✔ unwillingness to face
mortality
procrastination
current good health
costs
lack of knowledge
lack of awareness of the value of assets
A spouse is a spouse, regardless of sex - correct answer ✔✔
Wills - correct answer ✔✔ Legal document providing the testator (will-maker) the opp to
control the distribution of his property at death; a will avoids the state's intestacy law
distribution scheme
will make be revoked or amended as long as the testator has legal capacity
only effective upon death of testator
CSUF) questions with answers
Estate Planning Defined - correct answer ✔✔ Process of Accumulation, management,
conservation, and transfer of wealth considering legal, tax, and personal objectives
Decedent - correct answer ✔✔ The person who died
Heirs - correct answer ✔✔ People who inherit under state intestacy laws
Legatees - correct answer ✔✔ People or institutions who inherit under a valid will
transferor - correct answer ✔✔ The person who makes a transfer.
transferee - correct answer ✔✔ The person to whom a transfer is made.
donor - correct answer ✔✔ a person who gives a gift
donee - correct answer ✔✔ A person who receives a gift.
Effective transfer - correct answer ✔✔ decedent's assets are transferred based on his wishes
Efficient transfers - correct answer ✔✔ Transfer costs are minimized
Estate Planning Goals - correct answer ✔✔ Fulfill client's transfer wishes
, Maximize net assets to heirs
minimize the transfer taxes including:
Income tax issues
Gift tax
GST Tax
Estate Tax
State inheritance tax
Impediments to achieving estate planning goals - correct answer ✔✔ unwillingness to face
mortality
procrastination
current good health
costs
lack of knowledge
lack of awareness of the value of assets
A spouse is a spouse, regardless of sex - correct answer ✔✔
Wills - correct answer ✔✔ Legal document providing the testator (will-maker) the opp to
control the distribution of his property at death; a will avoids the state's intestacy law
distribution scheme
will make be revoked or amended as long as the testator has legal capacity
only effective upon death of testator
