Trust Fundamentals || 100% Errorless Answers.
Factors affecting property rights and property ownership correct answers Type, titling, timing
Classifications of property correct answers Real, Personal, Tangible, Intangible
Real Property correct answers Real estate, land, buildings and other fixed improvements on the
land. Can be tangible or intangible.
Personal Property correct answers All forms of property other than real property. Can be tangible
or intangible. Examples include cars, furniture, artwork, jewelry.
Tangible Property correct answers Can be touched. Must have a value in and of themselves.
Intangible Property correct answers Cannot be touched. Representative of value, but not of value
itself. Examples include stock certificates, bonds. Often a paper-based asset.
Community Property States correct answers Alaska (must be elected), Arizona, California,
Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin
Types of Property Ownership correct answers Individually owned; Tenants in common property;
Joint Tenancy with rights of survivorship; Tenancy by the Entirety; Contract Property; Trust
Property
Individually Owned Property (sole ownership) correct answers Property held only in the name of
one person who has full rights to the property during life and death. Will transfer under will or
estate and is subject to probate.
Tenants in Common Property correct answers Property in which two or more persons have an
undivided interest. No survivorship rights. Upon the death of one owner, his interest is passed by
will or estate to beneficiaries or heirs. Subject to probate.
Joint Tenancy with Rights of Survivorship correct answers Two or more parties hold equal share
in party with survivorship rights. Upon death of an owner, his or her interest pass to the joint
survivors. Not subject to probate.
Tenancy by the Entirety correct answers Common law concept of property ownership by
husband and wife (not recognized in all states).
, Contract Property correct answers All types of property subject to a contractual beneficiary
designation which supersedes the estate plan (for example, IRA or QRP)
Trust Property correct answers Property owned by a trust where the property is subject to the
terms and conditions of the trust.
Exceptions to Transfer Tax correct answers Transfer to a Qualified Charity; Transfer between
spouses; tuition and medical expenses; transfers to political organizations; gift tax annual
exclusion
Gift Tax annual exclusion correct answers up to $14,000 to as many people as desired in a given
year. Spouses may "split" and gift an individual up to $28,000 in a given year.
Form 709 correct answers Tax form used to report Gift Tax. Filed by the donor by April 15 in
the year the gift was given.
Form 706 correct answers Tax form used to report Estate tax. Filed by the done no later than 9
months after the date of death of the donor.
Four activities in Estate Planning correct answers Creation, Protection, Preservation, and
Management
Administrator correct answers An individual or entity, such as a trust department, appointed by a
court to settle the estate of a person who has died intestate
Conservator correct answers An individual or a trust institution appointed by a court to care for
property- specifically, property of an incompetent individual.
Guardian correct answers An individual or entity appointed by a court to care for a minor or
incompetent person's property, the person, or both.
Heir correct answers A spouse or descendant of an individual. Also a term for a person who
inherits property when a person dies intestate.
Living Will correct answers A written document between an individual and a physician. It is
used to identify which death-delaying medical treatments should not be used in the event of a
serious injury or terminal illness.
Trust correct answers A fiduciary relationship with respect to property, in which one person is
the holder of the legal title to property. This person is subject to an obligation to keep or use the
property for the benefit of another (the beneficiary).
Factors affecting property rights and property ownership correct answers Type, titling, timing
Classifications of property correct answers Real, Personal, Tangible, Intangible
Real Property correct answers Real estate, land, buildings and other fixed improvements on the
land. Can be tangible or intangible.
Personal Property correct answers All forms of property other than real property. Can be tangible
or intangible. Examples include cars, furniture, artwork, jewelry.
Tangible Property correct answers Can be touched. Must have a value in and of themselves.
Intangible Property correct answers Cannot be touched. Representative of value, but not of value
itself. Examples include stock certificates, bonds. Often a paper-based asset.
Community Property States correct answers Alaska (must be elected), Arizona, California,
Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin
Types of Property Ownership correct answers Individually owned; Tenants in common property;
Joint Tenancy with rights of survivorship; Tenancy by the Entirety; Contract Property; Trust
Property
Individually Owned Property (sole ownership) correct answers Property held only in the name of
one person who has full rights to the property during life and death. Will transfer under will or
estate and is subject to probate.
Tenants in Common Property correct answers Property in which two or more persons have an
undivided interest. No survivorship rights. Upon the death of one owner, his interest is passed by
will or estate to beneficiaries or heirs. Subject to probate.
Joint Tenancy with Rights of Survivorship correct answers Two or more parties hold equal share
in party with survivorship rights. Upon death of an owner, his or her interest pass to the joint
survivors. Not subject to probate.
Tenancy by the Entirety correct answers Common law concept of property ownership by
husband and wife (not recognized in all states).
, Contract Property correct answers All types of property subject to a contractual beneficiary
designation which supersedes the estate plan (for example, IRA or QRP)
Trust Property correct answers Property owned by a trust where the property is subject to the
terms and conditions of the trust.
Exceptions to Transfer Tax correct answers Transfer to a Qualified Charity; Transfer between
spouses; tuition and medical expenses; transfers to political organizations; gift tax annual
exclusion
Gift Tax annual exclusion correct answers up to $14,000 to as many people as desired in a given
year. Spouses may "split" and gift an individual up to $28,000 in a given year.
Form 709 correct answers Tax form used to report Gift Tax. Filed by the donor by April 15 in
the year the gift was given.
Form 706 correct answers Tax form used to report Estate tax. Filed by the done no later than 9
months after the date of death of the donor.
Four activities in Estate Planning correct answers Creation, Protection, Preservation, and
Management
Administrator correct answers An individual or entity, such as a trust department, appointed by a
court to settle the estate of a person who has died intestate
Conservator correct answers An individual or a trust institution appointed by a court to care for
property- specifically, property of an incompetent individual.
Guardian correct answers An individual or entity appointed by a court to care for a minor or
incompetent person's property, the person, or both.
Heir correct answers A spouse or descendant of an individual. Also a term for a person who
inherits property when a person dies intestate.
Living Will correct answers A written document between an individual and a physician. It is
used to identify which death-delaying medical treatments should not be used in the event of a
serious injury or terminal illness.
Trust correct answers A fiduciary relationship with respect to property, in which one person is
the holder of the legal title to property. This person is subject to an obligation to keep or use the
property for the benefit of another (the beneficiary).
