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WGU D363 Personal Finance PA EXAM
ALL Questions and Verified Solutions
Latest Update This Year
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
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?
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, Page 2 of 24
a) Revocable living trust
b) Discretionary trust
c) Irrevocable living trust
d) Testamentary trust
A revocable living trust is a substitute for a will, but ensures that heirs can avoid probate court.
Mei is opening a new retirement account. She has to choose a person to receive the balance
of the account upon Mei's death. Doing so eliminates the need for probate court. Which
transfer-by-contract method is Mei using?
a) Transfer by beneficiary
b) Payable-upon-death
c) Joint tenancy
d) A valid will
a) Transfer by beneficiary
By naming a beneficiary, the funds are easily transferred to the named person upon Mei's
death, and the account will not go through probate court.
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
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, Page 3 of 24
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
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.
d) The account will not need to go through probate
3
WGU D363 Personal Finance PA EXAM
ALL Questions and Verified Solutions
Latest Update This Year
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
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?
1
, Page 2 of 24
a) Revocable living trust
b) Discretionary trust
c) Irrevocable living trust
d) Testamentary trust
A revocable living trust is a substitute for a will, but ensures that heirs can avoid probate court.
Mei is opening a new retirement account. She has to choose a person to receive the balance
of the account upon Mei's death. Doing so eliminates the need for probate court. Which
transfer-by-contract method is Mei using?
a) Transfer by beneficiary
b) Payable-upon-death
c) Joint tenancy
d) A valid will
a) Transfer by beneficiary
By naming a beneficiary, the funds are easily transferred to the named person upon Mei's
death, and the account will not go through probate court.
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
2
, Page 3 of 24
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
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.
d) The account will not need to go through probate
3
