Estate Planning Test 1 Review
(updated) questions and answers
True or False: Financial planners can assist in implementing and monitoring estate plans once
recommendations have been developed. - correct answer ✔✔ True
True or False: The financial planning practitioner should determine the scope and limits of the
financial planning engagement for his clients. - correct answer ✔✔ False
The financial planning practitioner and the client should mutually determine the scope of the
engagement.
True or False: Providing advice involving the application of legal principals to a specific situation
constitutes the practice of law under the general-specific test. - correct answer ✔✔ True
True or False: An estate is defined as the rights, titles, or interests that a person, living or
deceased, has in property. - correct answer ✔✔ True
True or False: An executor is not a fiduciary because they are appointed by will - correct answer
✔✔ False
An executor is a fiduciary designated under a will to serve as the client's personal representative
True or False: Assets that are jointly titled with rights of survivorship between spouses are
deemed as one-half belonging to each spouse. - correct answer ✔✔ True
,True or False: At death, assets titled as tenants by the entirety will be subject to probate -
correct answer ✔✔ False
When assets are titled as tenants by the entirety, they will pass automatically to the joint
property holder - the surviving spouse - as a matter of law. The assets will not be subject to
probate.
True or False: Solely owned assets can be gifted or bequeathed during the owner's lifetime. -
correct answer ✔✔ True
An individual can gift solely owned assets to other during their lifetime, or can bequeath the
assets to whomever they wish at death. Sole ownership is the most complete form of
ownership, and the owner has complete lifetime and testamentary control.
True or False: All property that is owned jointly with rights of survivorship is owned equally by
all joint tenants regardless of whether the property is owned by spouses or non-spouses. -
correct answer ✔✔ True
True or False: Tenancy by entirety is a form of joint tenancy that can be held only by husband
and wife. - correct answer ✔✔ True
True or False: Income earned by an individually owned asset in a community property state is
deemed one-half owned by each spouse. - correct answer ✔✔ False
Income that is earned by a community asset is deemed one-half owned by each spouse, but
income that is earned by an individually owned asset is taxable to the owner of the property.
True or False: In a quasi-community property state, an asset that is acquired by inheritance
following the marriage will be considered a community asset. - correct answer ✔✔ False
, Assets that are acquired by inheritance will be separate property, even in a quasi-community
property state. Assets that were acquired in a common-law state after marriage with
community assets will be considered community property in a quasi-community property state.
True or False: The full value of a community property asset that is titled in an individual name
will be included in the decedent-owner's estate at death. - correct answer ✔✔ False
One-half of the value of all community assets is included in a decedent spouse's estate,
regardless of titling.
True or False: Assets that are titled tenants in common automatically pass to the other joint
tenants. - correct answer ✔✔ False
Assets that are titled as tenants in common pass per the terms of the decedent owner's will.
Assets titled joint with right of survivorship will pass automatically to the other joint tenant.
True or False: John lists the beneficiary of his life insurance policy as "my estate". The life
insurance proceeds will be subject to probate. - correct answer ✔✔ True
Life insurance passes by beneficiary designation, however, when the estate is listed as a
beneficiary, the proceeds will be paid to the estate and will pass per terms of a decedent's will.
True or False: When a decedent executes a revokable trust his estate will not be subject to
probate. - correct answer ✔✔ False
The decedent must transfer ownership of his assets to the trust in order to avoid probate of
assets at his death.
True or False: Assets titled as joint tenancy with rights of survivorship will always pass by will or
intestacy. - correct answer ✔✔ False
(updated) questions and answers
True or False: Financial planners can assist in implementing and monitoring estate plans once
recommendations have been developed. - correct answer ✔✔ True
True or False: The financial planning practitioner should determine the scope and limits of the
financial planning engagement for his clients. - correct answer ✔✔ False
The financial planning practitioner and the client should mutually determine the scope of the
engagement.
True or False: Providing advice involving the application of legal principals to a specific situation
constitutes the practice of law under the general-specific test. - correct answer ✔✔ True
True or False: An estate is defined as the rights, titles, or interests that a person, living or
deceased, has in property. - correct answer ✔✔ True
True or False: An executor is not a fiduciary because they are appointed by will - correct answer
✔✔ False
An executor is a fiduciary designated under a will to serve as the client's personal representative
True or False: Assets that are jointly titled with rights of survivorship between spouses are
deemed as one-half belonging to each spouse. - correct answer ✔✔ True
,True or False: At death, assets titled as tenants by the entirety will be subject to probate -
correct answer ✔✔ False
When assets are titled as tenants by the entirety, they will pass automatically to the joint
property holder - the surviving spouse - as a matter of law. The assets will not be subject to
probate.
True or False: Solely owned assets can be gifted or bequeathed during the owner's lifetime. -
correct answer ✔✔ True
An individual can gift solely owned assets to other during their lifetime, or can bequeath the
assets to whomever they wish at death. Sole ownership is the most complete form of
ownership, and the owner has complete lifetime and testamentary control.
True or False: All property that is owned jointly with rights of survivorship is owned equally by
all joint tenants regardless of whether the property is owned by spouses or non-spouses. -
correct answer ✔✔ True
True or False: Tenancy by entirety is a form of joint tenancy that can be held only by husband
and wife. - correct answer ✔✔ True
True or False: Income earned by an individually owned asset in a community property state is
deemed one-half owned by each spouse. - correct answer ✔✔ False
Income that is earned by a community asset is deemed one-half owned by each spouse, but
income that is earned by an individually owned asset is taxable to the owner of the property.
True or False: In a quasi-community property state, an asset that is acquired by inheritance
following the marriage will be considered a community asset. - correct answer ✔✔ False
, Assets that are acquired by inheritance will be separate property, even in a quasi-community
property state. Assets that were acquired in a common-law state after marriage with
community assets will be considered community property in a quasi-community property state.
True or False: The full value of a community property asset that is titled in an individual name
will be included in the decedent-owner's estate at death. - correct answer ✔✔ False
One-half of the value of all community assets is included in a decedent spouse's estate,
regardless of titling.
True or False: Assets that are titled tenants in common automatically pass to the other joint
tenants. - correct answer ✔✔ False
Assets that are titled as tenants in common pass per the terms of the decedent owner's will.
Assets titled joint with right of survivorship will pass automatically to the other joint tenant.
True or False: John lists the beneficiary of his life insurance policy as "my estate". The life
insurance proceeds will be subject to probate. - correct answer ✔✔ True
Life insurance passes by beneficiary designation, however, when the estate is listed as a
beneficiary, the proceeds will be paid to the estate and will pass per terms of a decedent's will.
True or False: When a decedent executes a revokable trust his estate will not be subject to
probate. - correct answer ✔✔ False
The decedent must transfer ownership of his assets to the trust in order to avoid probate of
assets at his death.
True or False: Assets titled as joint tenancy with rights of survivorship will always pass by will or
intestacy. - correct answer ✔✔ False
