Estate Planning - Exam One questions
well answered
What are some of the consequences for Ricky if he doesn't plan? - ANS ✔✔-client's property
transfer may go unfulfilled
-transfer taxes may be excessive
-other transfer costs may be excessive
-client's family may not be properly provided for financially
-there may be insufficient liquidity to cover client's debts, taxes, and costs at death
Who is on the estate planning team? - ANS ✔✔-client (captain)
-attorney
-accountant
-bank trust officer
-insurance agent
-investment advisor
-financial planner
Who is NOT on the estate planning team? - ANS ✔✔A psychiatrist
Can a financial planner draft legal documents? - ANS ✔✔NO!
What are examples of fiduciary relationships? - ANS ✔✔-trustee/beneficiary
-guardian/ward
-administrator/estate
, -executor/estate
What is NOT a fiduciary relationship? - ANS ✔✔income beneficiary/remainderperson
Which of the following is not a duty of a trustee or fiduciary? - ANS ✔✔Do NOT have to
maximize return!
What factors should you consider when selecting a fiduciary? - ANS ✔✔-the business, financial,
and administrative ability of the potential executor
-age of potential executor
-conflicts of interest between executor and the beneficiaries
-cost
For a holographic will to be valid... - ANS ✔✔-a will written in the testator's handwriting (not
typed)
-the will must be signed and dated by testator
-no witnesses are required
What statement is not true about a guardian? - ANS ✔✔A guardian is a complete substitute for
trust management
When does a person die intestate? - ANS ✔✔-will was not property witnessed
-will never executed
-will pours assets into a non-existent trust
What happens if both parties don't make a full disclosure? - ANS ✔✔The court won't honor the
prenup
well answered
What are some of the consequences for Ricky if he doesn't plan? - ANS ✔✔-client's property
transfer may go unfulfilled
-transfer taxes may be excessive
-other transfer costs may be excessive
-client's family may not be properly provided for financially
-there may be insufficient liquidity to cover client's debts, taxes, and costs at death
Who is on the estate planning team? - ANS ✔✔-client (captain)
-attorney
-accountant
-bank trust officer
-insurance agent
-investment advisor
-financial planner
Who is NOT on the estate planning team? - ANS ✔✔A psychiatrist
Can a financial planner draft legal documents? - ANS ✔✔NO!
What are examples of fiduciary relationships? - ANS ✔✔-trustee/beneficiary
-guardian/ward
-administrator/estate
, -executor/estate
What is NOT a fiduciary relationship? - ANS ✔✔income beneficiary/remainderperson
Which of the following is not a duty of a trustee or fiduciary? - ANS ✔✔Do NOT have to
maximize return!
What factors should you consider when selecting a fiduciary? - ANS ✔✔-the business, financial,
and administrative ability of the potential executor
-age of potential executor
-conflicts of interest between executor and the beneficiaries
-cost
For a holographic will to be valid... - ANS ✔✔-a will written in the testator's handwriting (not
typed)
-the will must be signed and dated by testator
-no witnesses are required
What statement is not true about a guardian? - ANS ✔✔A guardian is a complete substitute for
trust management
When does a person die intestate? - ANS ✔✔-will was not property witnessed
-will never executed
-will pours assets into a non-existent trust
What happens if both parties don't make a full disclosure? - ANS ✔✔The court won't honor the
prenup
