ACE 240 Exam 2 with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
All of the following are obstacles to effective estate planning EXCEPT:
- Improper ownership of assets
- Failure to plan for disability
- Excess estate liquidity ✔Correct Answer-- correct! Excess estate liquidity
Which of the following assets will transfer according to the dictates of a valid will?
- Life Insurance Policy.
- Retirement account such as a 401(k) or Roth IRA.
- Real Estate owned solely by the deceased person.
- Real Estate owned jointly with rights of survivorship with another person. ✔Correct Answer--
Correct! Real Estate owned solely by the deceased person.
Revocable Living Trusts help you avoid estate tax.
true or false ✔Correct Answer-false
Planning the estate appropriately can result in avoiding probate because of properly titled assets.
true or false ✔Correct Answer-true
Which of the following is a Non-Probate Property?
- joint owned property
- life insurance
- trusts
- all ✔Correct Answer-all
___ is your written expression of how you want to be treated in certain medical circumstances.
Depending on state law, this document may permit you to express whether you wish to be given life-
sustaining treatments in the event you are terminally ill or injured, to decide in advance whether you
wish to be provided food and water via intravenous devices ("tube feeding"), and to give other
medical directions that impact your care, including the end of life. ✔Correct Answer-living will
The current estate tax exemption amount is very high. In light of this, most people will not be subject
to the federal estate tax. ✔Correct Answer-true
___ is the court-supervised process of administering your estate and transferring your property at
death pursuant to the terms of your will. ✔Correct Answer-probate
A well-planned estate can result in income tax savings, gift tax savings, and even estate tax savings.
There are certain trusts that can be set up, such as charitable trusts, that can result in not only estate
tax savings but an income tax deduction for the donor as well. ✔Correct Answer-true
Which of the following is not a part of the transfer tax system? ✔Correct Answer-income tax
Relating to Powers of Attorney, which of the following is not true?
- The person named in a power of attorney to act on your behalf is commonly referred to as your
'agent' or 'attorney-in-fact.
- A power of attorney continues after death.
, - The power of attorney may give temporary or permanent authority to act on your behalf.
- The power of attorney may take effect immediately, or only upon the occurrence of a future event.
✔Correct Answer-Correct! A power of attorney continues after death.
Regarding wills, which of the following is not true?
-Permits you to designate a guardian for minor children.
- Permits you to designate an executor of your estate.
- When a person dies without a will, state laws of descent and distribution will determine who
receives the property.
- A will governs the transfer of all types of assets. ✔Correct Answer-- Correct! A will governs the
transfer of all types of assets.
All of the following statements are correct regarding the unauthorized practice of law EXCEPT:
- Providing general information concerning tax laws would not constitute the unauthorized practice
of law
- Attorneys cannot be engaged in the unauthorized practice of law
- The definition of unauthorized practice of law differs from state to state ✔Correct Answer-Correct
Attorneys cannot be engaged in the unauthorized practice of law
Regarding Living Trusts, which of the following is not true?
- Unlike a will, a living trust can also provide you with a vehicle for managing your property during
your lifetime and authorize the trustee to manage the property and use it for your benefit.
- Upon your death, the trustee is generally directed to either distribute the trust property to your
beneficiaries, or to continue to hold it and manage it for the benefit of your beneficiaries.
- The trustee cannot be yourself.
- Trusts permits the trust assets to be held as a single undivided fund to be used for the support and
education of minor children according to their respective needs, with eventual division of the trust
among the children when the youngest has reached a specified age. ✔Correct Answer-Correct The
trustee cannot be yourself.
__ is the tax on the right to transfer property after somebody has died. ✔Correct Answer-estate tax
Which of the following members of the estate planning team is responsible for assuring the client's
intentions are expressed in the will and trust documents that will carry out the final plan?
- The financial planner
- The attorney
- The trust officer ✔Correct Answer-Correct Answer The attorney
Which of the following is not true?
- A living trust is your written expression of how you want to be treated in certain medical
circumstances.
- A 'health care proxy,' sometimes called a 'health care surrogate' or 'durable medical power of
attorney,' is a durable power of attorney specifically designed to cover medical treatment.
- In addition to helping your physician, Health Care Directives express your wishes to your family so
that they do not have to guess about what you would want.
- You appoint a person and grant to him or her the authority to make medical decisions for you in the
event you are unable to express your preferences about medical treatment. Most commonly, this
situation occurs either because you are unconscious or because your mental state is such that you do
not have the legal capacity to make your own decisions. ✔Correct Answer-Correct Answer A living
trust is your written expression of how you want to be treated in certain medical circumstances.
Answers |Actual Complete Exam |Already Graded A+
All of the following are obstacles to effective estate planning EXCEPT:
- Improper ownership of assets
- Failure to plan for disability
- Excess estate liquidity ✔Correct Answer-- correct! Excess estate liquidity
Which of the following assets will transfer according to the dictates of a valid will?
- Life Insurance Policy.
- Retirement account such as a 401(k) or Roth IRA.
- Real Estate owned solely by the deceased person.
- Real Estate owned jointly with rights of survivorship with another person. ✔Correct Answer--
Correct! Real Estate owned solely by the deceased person.
Revocable Living Trusts help you avoid estate tax.
true or false ✔Correct Answer-false
Planning the estate appropriately can result in avoiding probate because of properly titled assets.
true or false ✔Correct Answer-true
Which of the following is a Non-Probate Property?
- joint owned property
- life insurance
- trusts
- all ✔Correct Answer-all
___ is your written expression of how you want to be treated in certain medical circumstances.
Depending on state law, this document may permit you to express whether you wish to be given life-
sustaining treatments in the event you are terminally ill or injured, to decide in advance whether you
wish to be provided food and water via intravenous devices ("tube feeding"), and to give other
medical directions that impact your care, including the end of life. ✔Correct Answer-living will
The current estate tax exemption amount is very high. In light of this, most people will not be subject
to the federal estate tax. ✔Correct Answer-true
___ is the court-supervised process of administering your estate and transferring your property at
death pursuant to the terms of your will. ✔Correct Answer-probate
A well-planned estate can result in income tax savings, gift tax savings, and even estate tax savings.
There are certain trusts that can be set up, such as charitable trusts, that can result in not only estate
tax savings but an income tax deduction for the donor as well. ✔Correct Answer-true
Which of the following is not a part of the transfer tax system? ✔Correct Answer-income tax
Relating to Powers of Attorney, which of the following is not true?
- The person named in a power of attorney to act on your behalf is commonly referred to as your
'agent' or 'attorney-in-fact.
- A power of attorney continues after death.
, - The power of attorney may give temporary or permanent authority to act on your behalf.
- The power of attorney may take effect immediately, or only upon the occurrence of a future event.
✔Correct Answer-Correct! A power of attorney continues after death.
Regarding wills, which of the following is not true?
-Permits you to designate a guardian for minor children.
- Permits you to designate an executor of your estate.
- When a person dies without a will, state laws of descent and distribution will determine who
receives the property.
- A will governs the transfer of all types of assets. ✔Correct Answer-- Correct! A will governs the
transfer of all types of assets.
All of the following statements are correct regarding the unauthorized practice of law EXCEPT:
- Providing general information concerning tax laws would not constitute the unauthorized practice
of law
- Attorneys cannot be engaged in the unauthorized practice of law
- The definition of unauthorized practice of law differs from state to state ✔Correct Answer-Correct
Attorneys cannot be engaged in the unauthorized practice of law
Regarding Living Trusts, which of the following is not true?
- Unlike a will, a living trust can also provide you with a vehicle for managing your property during
your lifetime and authorize the trustee to manage the property and use it for your benefit.
- Upon your death, the trustee is generally directed to either distribute the trust property to your
beneficiaries, or to continue to hold it and manage it for the benefit of your beneficiaries.
- The trustee cannot be yourself.
- Trusts permits the trust assets to be held as a single undivided fund to be used for the support and
education of minor children according to their respective needs, with eventual division of the trust
among the children when the youngest has reached a specified age. ✔Correct Answer-Correct The
trustee cannot be yourself.
__ is the tax on the right to transfer property after somebody has died. ✔Correct Answer-estate tax
Which of the following members of the estate planning team is responsible for assuring the client's
intentions are expressed in the will and trust documents that will carry out the final plan?
- The financial planner
- The attorney
- The trust officer ✔Correct Answer-Correct Answer The attorney
Which of the following is not true?
- A living trust is your written expression of how you want to be treated in certain medical
circumstances.
- A 'health care proxy,' sometimes called a 'health care surrogate' or 'durable medical power of
attorney,' is a durable power of attorney specifically designed to cover medical treatment.
- In addition to helping your physician, Health Care Directives express your wishes to your family so
that they do not have to guess about what you would want.
- You appoint a person and grant to him or her the authority to make medical decisions for you in the
event you are unable to express your preferences about medical treatment. Most commonly, this
situation occurs either because you are unconscious or because your mental state is such that you do
not have the legal capacity to make your own decisions. ✔Correct Answer-Correct Answer A living
trust is your written expression of how you want to be treated in certain medical circumstances.
