Estate Planning Test 3 questions well
answered to pass
Franklin established an irrevocable trust with $60,000. - correct answer ✔✔ C. Lucinda will not
make a taxable gift if she lets her withdrawal right lapse
Meg is the holder of a power of appointment in an irrevocable trust - correct answer ✔✔ B.
Meg has a limited power of appointment over the trust property
Ethan is the beneficiary of an irrevocable trus created by his uncle - correct answer ✔✔ D.
Ethan has a general power of appointment
Which of the following statements regarding a Crummey power is not correct? - correct answer
✔✔ A. A Crummey power permits a beneficiary to demand payment of existing trust corpus or
income
Which of the following statements regarding a Crummey lapse is not correct? - correct answer
✔✔ D. A Crummey beneficiary's unified credit cannot be used to offset a tax attributed to a
Crummey lapse
Henry is a single businessman with inadequate liquidity to cover estate administrative expenses
- correct answer ✔✔ B. single premium whole life
which type of life insurance policy permits the contract owner to choose the level of premium -
correct answer ✔✔ C. Universal life
Edie died last month owning a whole life insurance policy on her husband Rob's life - correct
answer ✔✔ A. the amount included in Edie's gross estate but not in her probate estate
answered to pass
Franklin established an irrevocable trust with $60,000. - correct answer ✔✔ C. Lucinda will not
make a taxable gift if she lets her withdrawal right lapse
Meg is the holder of a power of appointment in an irrevocable trust - correct answer ✔✔ B.
Meg has a limited power of appointment over the trust property
Ethan is the beneficiary of an irrevocable trus created by his uncle - correct answer ✔✔ D.
Ethan has a general power of appointment
Which of the following statements regarding a Crummey power is not correct? - correct answer
✔✔ A. A Crummey power permits a beneficiary to demand payment of existing trust corpus or
income
Which of the following statements regarding a Crummey lapse is not correct? - correct answer
✔✔ D. A Crummey beneficiary's unified credit cannot be used to offset a tax attributed to a
Crummey lapse
Henry is a single businessman with inadequate liquidity to cover estate administrative expenses
- correct answer ✔✔ B. single premium whole life
which type of life insurance policy permits the contract owner to choose the level of premium -
correct answer ✔✔ C. Universal life
Edie died last month owning a whole life insurance policy on her husband Rob's life - correct
answer ✔✔ A. the amount included in Edie's gross estate but not in her probate estate
