WGU D363 Personal Finance UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Ahmed wants to leave the money in his checking account to his niece upon his death. He wants
his niece to get the money without having to go through a lengthy and expensive legal process.
He also does not want his niece to be able to access his account until his death.
Which type of transfer by contract should he choose?
a) Payable-upon-death
b) A valid will
c) Probate
d) Joint tenancy - CORRECT ANSWER - a) Payable-Upon-Death
Including a payable-upon-death designation to an account ensures that the funds will easily move
to the designee upon the account owner's death, but it also ensures that the designee cannot
access the account until then.
What is the benefit of naming a beneficiary to accounts?
a) The beneficiary is a co-owner of the account.
b) The beneficiary will pay lower legal fees to gain access to the account.
c) The beneficiary becomes executor of the deceased's will.
d) The account will not need to go through probate. - CORRECT ANSWER - d) The account
will not need to go through probate
Naming a beneficiary allows the institution to deliver the balance of the account to the chosen
person without going through probate
How does the partnership theory of marriage rights protect a spouse?
, a) Current ownership of property and how it should be distributed after death is mutually agreed
upon by both spouses in a legal document.
b) Ownership of property acquired by one spouse during marriage is retained by that spouse until
it transfers to the other spouse upon death.
c) Property acquired during marriage but in the name of only one partner becomes the property
of both spouses while both are still living.
d) Property acquired by one spouse through inheritance or gift becomes co-owned by the other
spouse by law. - CORRECT ANSWER - c) Property acquired during marriage but in the
name of only one partner becomes the property of both spouses while both are still living.
Except for property acquired by gift or inheritance, all property acquired during the marriage is
owned by both spouses.
Loto wants to create a trust to leave his house to his nephew upon his death. His goal is to reduce
estate taxes for his nephew. Which type of trust has the grantor give up ownership and control of
the house while still alive?
a) Discretionary trust
b) Revocable living trust
c) Irrevocable living trust
d) Testamentary trust - CORRECT ANSWER - c) Irrevocable living trust
A grantor gives up control of the property, the right to change beneficiaries, and the right to
change the trustee or trustees under this type of trust.
Daniel wants to place his assets in a trust. He wants to protect his assets and also enable his heirs
to avoid probate court. He also wants to maintain control over his assets while he is alive and
wants the right to change or add trustees.
Which type of trust should Daniel choose to fulfill all of these requirements?
a) Revocable living trust
ACTUAL Exam Questions and CORRECT
Answers
Ahmed wants to leave the money in his checking account to his niece upon his death. He wants
his niece to get the money without having to go through a lengthy and expensive legal process.
He also does not want his niece to be able to access his account until his death.
Which type of transfer by contract should he choose?
a) Payable-upon-death
b) A valid will
c) Probate
d) Joint tenancy - CORRECT ANSWER - a) Payable-Upon-Death
Including a payable-upon-death designation to an account ensures that the funds will easily move
to the designee upon the account owner's death, but it also ensures that the designee cannot
access the account until then.
What is the benefit of naming a beneficiary to accounts?
a) The beneficiary is a co-owner of the account.
b) The beneficiary will pay lower legal fees to gain access to the account.
c) The beneficiary becomes executor of the deceased's will.
d) The account will not need to go through probate. - CORRECT ANSWER - d) The account
will not need to go through probate
Naming a beneficiary allows the institution to deliver the balance of the account to the chosen
person without going through probate
How does the partnership theory of marriage rights protect a spouse?
, a) Current ownership of property and how it should be distributed after death is mutually agreed
upon by both spouses in a legal document.
b) Ownership of property acquired by one spouse during marriage is retained by that spouse until
it transfers to the other spouse upon death.
c) Property acquired during marriage but in the name of only one partner becomes the property
of both spouses while both are still living.
d) Property acquired by one spouse through inheritance or gift becomes co-owned by the other
spouse by law. - CORRECT ANSWER - c) Property acquired during marriage but in the
name of only one partner becomes the property of both spouses while both are still living.
Except for property acquired by gift or inheritance, all property acquired during the marriage is
owned by both spouses.
Loto wants to create a trust to leave his house to his nephew upon his death. His goal is to reduce
estate taxes for his nephew. Which type of trust has the grantor give up ownership and control of
the house while still alive?
a) Discretionary trust
b) Revocable living trust
c) Irrevocable living trust
d) Testamentary trust - CORRECT ANSWER - c) Irrevocable living trust
A grantor gives up control of the property, the right to change beneficiaries, and the right to
change the trustee or trustees under this type of trust.
Daniel wants to place his assets in a trust. He wants to protect his assets and also enable his heirs
to avoid probate court. He also wants to maintain control over his assets while he is alive and
wants the right to change or add trustees.
Which type of trust should Daniel choose to fulfill all of these requirements?
a) Revocable living trust
