Estate and Financial Planning Exam 1
questions well answered to pass
Which of the following is NOT an estate planning goal?
A) Maximizing the gross estate
B) Minimizing transfer taxes
C) providing for liquidity at death
D) Fulfilling client's healthcare decision - correct answer ✔✔ A) Maximizing the gross estate
As a financial planner, you are preparing for a meeting with a new client, Jorge. What would you
most likely ask Jorge to bring to this meeting?
A) Pictures of his children
B) His parents
C) Any will and trust
D) Sales record of beneficiaries - correct answer ✔✔ C) Any will and trust
Although he has a vast fortune, Tricky has decided not to prepare an estate plan because he
believes that his surviving family members will divide up his assets appropriately. Which of the
following is NOT a risk associated with failing to plan an estate?
A) Tricky's estate could incur excessive transfer taxes
B) Tricky's favorite car may not be transferred to his ex-wife, Carla
C) Tricky's insurance policy on his own life may not be paid out to the named beneficiary.
D) Tricky's current wife, Dixie, may not provide for his children from a previous marriage. -
correct answer ✔✔ C) Tricky's insurance policy on his own life may not be paid out to the
named beneficiary.
,Which of the following activities would be considered the unauthorized practice of law for a
financial planner who is NOT a licensed attorney?
A) preparing a will for a client
B) helping a client to identify his financial planning goals
C) Preparing financial statements for a prospective client
D) Reading the will and trusts for a client - correct answer ✔✔ A) preparing a will for a client
Which of the following advisors is/are qualified to give estate planning advice?
1) Attorneys 2) CPAs 3) Financial Planners
A) 1 only
B) 1 & 2
C) 2 & 3
D)1, 2 & 3 - correct answer ✔✔ D) 1, 2 & 3
Estate planning is an important aspect for which of the following?
1) Probate and Succession Planning
2) Comprehensive financial planning
3) Retirement planning
A) 1 only
B)1 & 2
C) 2& 3
D) 1, 2, & 3 - correct answer ✔✔ D) 1, 2, & 3
The best definition of estate planning is?
A)A plan for the disposition of all assets at death
B) A plan for managing property during lifetime and at death
, C) Titling and beneficiary naming
D) Investment planning - correct answer ✔✔ B) A plan for managing property during lifetime
and at death
Failure to have an estate plan can lead to:
A) increased costs
B) delays
C) assets passing to unintended people
D) All of the above - correct answer ✔✔ D) All of the above
all of the following are transfer costs associated with estate planning except:
A) attorney fees for documents
B) costs of retitling real estate
C) estate and inheritance taxes
D) property taxes on inherited property - correct answer ✔✔ D) property taxes on inherited
property
You as a CFP professional are asked to assist one of your clients who is very frugal to prepare her
will using legalzoom.com. Which are correct?
A) it is permissable as long as you get a waiver from your client
B) it is permissable as long as you are not a heir, legatee or beneficiary
C) legalzoom is not very good and you should direct her to "will maker"
D) You cannot assist her - correct answer ✔✔ D) You cannot assist her
Which of the following powers given to anyone would cause the power to be deemed as a
general power of appointment?
A) the power to use your money to pay your creditors
questions well answered to pass
Which of the following is NOT an estate planning goal?
A) Maximizing the gross estate
B) Minimizing transfer taxes
C) providing for liquidity at death
D) Fulfilling client's healthcare decision - correct answer ✔✔ A) Maximizing the gross estate
As a financial planner, you are preparing for a meeting with a new client, Jorge. What would you
most likely ask Jorge to bring to this meeting?
A) Pictures of his children
B) His parents
C) Any will and trust
D) Sales record of beneficiaries - correct answer ✔✔ C) Any will and trust
Although he has a vast fortune, Tricky has decided not to prepare an estate plan because he
believes that his surviving family members will divide up his assets appropriately. Which of the
following is NOT a risk associated with failing to plan an estate?
A) Tricky's estate could incur excessive transfer taxes
B) Tricky's favorite car may not be transferred to his ex-wife, Carla
C) Tricky's insurance policy on his own life may not be paid out to the named beneficiary.
D) Tricky's current wife, Dixie, may not provide for his children from a previous marriage. -
correct answer ✔✔ C) Tricky's insurance policy on his own life may not be paid out to the
named beneficiary.
,Which of the following activities would be considered the unauthorized practice of law for a
financial planner who is NOT a licensed attorney?
A) preparing a will for a client
B) helping a client to identify his financial planning goals
C) Preparing financial statements for a prospective client
D) Reading the will and trusts for a client - correct answer ✔✔ A) preparing a will for a client
Which of the following advisors is/are qualified to give estate planning advice?
1) Attorneys 2) CPAs 3) Financial Planners
A) 1 only
B) 1 & 2
C) 2 & 3
D)1, 2 & 3 - correct answer ✔✔ D) 1, 2 & 3
Estate planning is an important aspect for which of the following?
1) Probate and Succession Planning
2) Comprehensive financial planning
3) Retirement planning
A) 1 only
B)1 & 2
C) 2& 3
D) 1, 2, & 3 - correct answer ✔✔ D) 1, 2, & 3
The best definition of estate planning is?
A)A plan for the disposition of all assets at death
B) A plan for managing property during lifetime and at death
, C) Titling and beneficiary naming
D) Investment planning - correct answer ✔✔ B) A plan for managing property during lifetime
and at death
Failure to have an estate plan can lead to:
A) increased costs
B) delays
C) assets passing to unintended people
D) All of the above - correct answer ✔✔ D) All of the above
all of the following are transfer costs associated with estate planning except:
A) attorney fees for documents
B) costs of retitling real estate
C) estate and inheritance taxes
D) property taxes on inherited property - correct answer ✔✔ D) property taxes on inherited
property
You as a CFP professional are asked to assist one of your clients who is very frugal to prepare her
will using legalzoom.com. Which are correct?
A) it is permissable as long as you get a waiver from your client
B) it is permissable as long as you are not a heir, legatee or beneficiary
C) legalzoom is not very good and you should direct her to "will maker"
D) You cannot assist her - correct answer ✔✔ D) You cannot assist her
Which of the following powers given to anyone would cause the power to be deemed as a
general power of appointment?
A) the power to use your money to pay your creditors
