Estate Planning quiz well answered
already passed
Estate planning process; the four steps are? - correct answer ✔✔ determine the value of your
estate
choose your heirs and decide what they receive
determine the cash needs of the estate
select and implement your estate planning techniques.
step one in estate planning - correct answer ✔✔ determine the value of your estate
-determine the value of your assets
-what is your net worth
-level of wealth determines tax planning needs
step two in estate planning - correct answer ✔✔ choose your heirs and decide what they
receive
-who's going to get your stuff
-in addition to spouse, consider special needs of your dependents
step three in estate planning - correct answer ✔✔ what are the cash needs of the estate
-medical costs, funeral costs, all legal fees, outstanding debt, and estate and inheritance taxes
-have enough funds in liquid assets; treasury bills, stocks, bonds, to cover estate tax needs or to
provide tax-free income to your heirs from a life insurance policy
step four in estate planning - correct answer ✔✔ select and implement your estate planning
techniques
, -a will, a durable power of attorney, joint ownership, trusts, life insurance, and gifts
-consult a legal specialist in estate planning
unified tax credit - correct answer ✔✔ estate and gift tax credit that, in 2014, allows $5.34
million of an estate and lifetime gifts to be passed on tax free
-if you go above this credit, the gov. will tax you 40%
-estate tax exemption in portable (through spouses of dependents)
gift taxes - correct answer ✔✔ an excellent way of transferring wealth before you die. they
reduce the taxable value of the estate and allow you to help out your heirs while you're still
alive. neither recipient or giver is taxed.
-you're permitted to give $14,000 per year tax free to as many different people as you like.
gift tax and estate tax - correct answer ✔✔ they work together with a total lifetime tac exempt
limit on gifts over $14,000 per recipient
unlimited marital deductions - correct answer ✔✔ no limit on size of transfers between spouses
that can be made tax-free.
-spouse must be a U.S. citizen
generation-skipping transfer tax - correct answer ✔✔ a tax on wealth and property transfers to
a person two or more generations younger than the donor.
-imposed on gifts and bequests that pass assets from grandparent to grandchild
calculating estate taxes - correct answer ✔✔ calculate
-your gross estate: value of assets and property at the time of your death
-then your taxable estate: subtract your funeral and estate administrative costs and
debts/mortgages you still owe
already passed
Estate planning process; the four steps are? - correct answer ✔✔ determine the value of your
estate
choose your heirs and decide what they receive
determine the cash needs of the estate
select and implement your estate planning techniques.
step one in estate planning - correct answer ✔✔ determine the value of your estate
-determine the value of your assets
-what is your net worth
-level of wealth determines tax planning needs
step two in estate planning - correct answer ✔✔ choose your heirs and decide what they
receive
-who's going to get your stuff
-in addition to spouse, consider special needs of your dependents
step three in estate planning - correct answer ✔✔ what are the cash needs of the estate
-medical costs, funeral costs, all legal fees, outstanding debt, and estate and inheritance taxes
-have enough funds in liquid assets; treasury bills, stocks, bonds, to cover estate tax needs or to
provide tax-free income to your heirs from a life insurance policy
step four in estate planning - correct answer ✔✔ select and implement your estate planning
techniques
, -a will, a durable power of attorney, joint ownership, trusts, life insurance, and gifts
-consult a legal specialist in estate planning
unified tax credit - correct answer ✔✔ estate and gift tax credit that, in 2014, allows $5.34
million of an estate and lifetime gifts to be passed on tax free
-if you go above this credit, the gov. will tax you 40%
-estate tax exemption in portable (through spouses of dependents)
gift taxes - correct answer ✔✔ an excellent way of transferring wealth before you die. they
reduce the taxable value of the estate and allow you to help out your heirs while you're still
alive. neither recipient or giver is taxed.
-you're permitted to give $14,000 per year tax free to as many different people as you like.
gift tax and estate tax - correct answer ✔✔ they work together with a total lifetime tac exempt
limit on gifts over $14,000 per recipient
unlimited marital deductions - correct answer ✔✔ no limit on size of transfers between spouses
that can be made tax-free.
-spouse must be a U.S. citizen
generation-skipping transfer tax - correct answer ✔✔ a tax on wealth and property transfers to
a person two or more generations younger than the donor.
-imposed on gifts and bequests that pass assets from grandparent to grandchild
calculating estate taxes - correct answer ✔✔ calculate
-your gross estate: value of assets and property at the time of your death
-then your taxable estate: subtract your funeral and estate administrative costs and
debts/mortgages you still owe
