Estate Planning Exam 2
Which of the following will Alex not be allowed to do in his will? - Disinherit his wife Sally.
Which of the following powers should a testator not give to his executor? - The power to determine
whether beneficiaries listed in the will should receive the property bequeathed to him or her.
Anne consults a CFP® practitioner to discuss her financial and estate planning goals. Which of the
following factors will not be important for the CFP® practitioner to know in determining whether
Anne should update her will? - Anne recently hired a new investment manager because she was not
happy with her former manager.
All of the following are requirements of a will except - The Testator does not have to be competent.
Jennifer, a CFP® practitioner meets with new clients, Max and Alicia, for the first time. She reviews
their overall financial and estate planning goals, and their list of current assets. Max and Alicia have
the following assets:
Max's 401(k) $250,000 - Alicia is the beneficiary
Alicia's 403(b) $520,000 - Max is the beneficiary
House owned as T by E valued at $350,000
Vacation home Max inherited with his sister Ava as JTWROS valued at $500,000
Mutual fund account owned equally as TIC valued at $700,000
Bond portfolio owned JTWROS valued at $600,000
Max and Alicia have two children - Doug and John. Doug is single and has no children. John was killed
in a car accident last year, leaving two children, Tammy and Denise. Assets passing by will are left
50% to the spouse and 50% to the children per stirpes.
Max and Alicia ask Jennifer several questions about their estate planning situation.
Max wishes to leave his interest - False
Which of the following assets will be available to satisfy the general bequests to Vicky and Dan? -
Mutual fund account
Max and Alicia ask Jennifer several questions about their estate planning situation.
What is the amount that Doug will inherit at Max's death? - $75,000
, Assuming Max predeceases Alicia and Alicia does not change her will, what is the amount that
Tammy will inherit at Alicia's death? - $555,000
Which of the following can be accomplished by a health care proxy: - Can express the client's desire
with respect to the use of heroic life-saving measures in the event of a terminal condition.
Which of the following statements pertaining to Medicaid is correct? - It is a government program
designed to provide health benefits to the needy.
Marlene, a divorced mother of two young children, met with an estate planning attorney to obtain a
will and estate planning documents. She appointed her father as agent of her power of attorney to
handle all of her financial affairs if her doctors declare her incompetent. Which power of attorney
best describes the type Marlene has executed? - A springing durable power of attorney.
Which of the following is not an objective of a "special needs trust"?
I. To provide benefits to a disabled person.
II. To ensure that the beneficiary of the trust is not disqualified from state or federal government
assistance programs.
III. To allow the disabled beneficiary unlimited access to the trust assets. - 3
Anthony's doctors have told him that he is starting to show signs of Alzheimer's Syndrome and he is
concerned that he may lose his mental faculties down the road. He wants to make sure that his wife,
Judy, is able to assume management of all assets and to make health care decisions for him. He
wants to be sure that the transition of management is as seamless as possible. Anthony consults Jeff,
a CFP® professional. Which of the following steps should Jeff not recommend Anthony take to
ensure that his assets can continue to be managed and his health care needs are taken care of in the
event that he becomes incapacitated down the road? - Anthony should rely on the court system to
appoint Judy as his conservator to ensure that all laws are complied with.
If Judy predeceased Anthony and Anthony was still competent, which of the following would be
appropriate to address Anthony's incapacity concerns: - Execute a durable power of attorney naming
Angela as his attorney-in-fact.
Which of the following statements is not a valid reason for Anthony to execute a durable power of
attorney? - It can be used to test family members' management of his assets.
Which of the following will Alex not be allowed to do in his will? - Disinherit his wife Sally.
Which of the following powers should a testator not give to his executor? - The power to determine
whether beneficiaries listed in the will should receive the property bequeathed to him or her.
Anne consults a CFP® practitioner to discuss her financial and estate planning goals. Which of the
following factors will not be important for the CFP® practitioner to know in determining whether
Anne should update her will? - Anne recently hired a new investment manager because she was not
happy with her former manager.
All of the following are requirements of a will except - The Testator does not have to be competent.
Jennifer, a CFP® practitioner meets with new clients, Max and Alicia, for the first time. She reviews
their overall financial and estate planning goals, and their list of current assets. Max and Alicia have
the following assets:
Max's 401(k) $250,000 - Alicia is the beneficiary
Alicia's 403(b) $520,000 - Max is the beneficiary
House owned as T by E valued at $350,000
Vacation home Max inherited with his sister Ava as JTWROS valued at $500,000
Mutual fund account owned equally as TIC valued at $700,000
Bond portfolio owned JTWROS valued at $600,000
Max and Alicia have two children - Doug and John. Doug is single and has no children. John was killed
in a car accident last year, leaving two children, Tammy and Denise. Assets passing by will are left
50% to the spouse and 50% to the children per stirpes.
Max and Alicia ask Jennifer several questions about their estate planning situation.
Max wishes to leave his interest - False
Which of the following assets will be available to satisfy the general bequests to Vicky and Dan? -
Mutual fund account
Max and Alicia ask Jennifer several questions about their estate planning situation.
What is the amount that Doug will inherit at Max's death? - $75,000
, Assuming Max predeceases Alicia and Alicia does not change her will, what is the amount that
Tammy will inherit at Alicia's death? - $555,000
Which of the following can be accomplished by a health care proxy: - Can express the client's desire
with respect to the use of heroic life-saving measures in the event of a terminal condition.
Which of the following statements pertaining to Medicaid is correct? - It is a government program
designed to provide health benefits to the needy.
Marlene, a divorced mother of two young children, met with an estate planning attorney to obtain a
will and estate planning documents. She appointed her father as agent of her power of attorney to
handle all of her financial affairs if her doctors declare her incompetent. Which power of attorney
best describes the type Marlene has executed? - A springing durable power of attorney.
Which of the following is not an objective of a "special needs trust"?
I. To provide benefits to a disabled person.
II. To ensure that the beneficiary of the trust is not disqualified from state or federal government
assistance programs.
III. To allow the disabled beneficiary unlimited access to the trust assets. - 3
Anthony's doctors have told him that he is starting to show signs of Alzheimer's Syndrome and he is
concerned that he may lose his mental faculties down the road. He wants to make sure that his wife,
Judy, is able to assume management of all assets and to make health care decisions for him. He
wants to be sure that the transition of management is as seamless as possible. Anthony consults Jeff,
a CFP® professional. Which of the following steps should Jeff not recommend Anthony take to
ensure that his assets can continue to be managed and his health care needs are taken care of in the
event that he becomes incapacitated down the road? - Anthony should rely on the court system to
appoint Judy as his conservator to ensure that all laws are complied with.
If Judy predeceased Anthony and Anthony was still competent, which of the following would be
appropriate to address Anthony's incapacity concerns: - Execute a durable power of attorney naming
Angela as his attorney-in-fact.
Which of the following statements is not a valid reason for Anthony to execute a durable power of
attorney? - It can be used to test family members' management of his assets.
