FINA 4325: Estate Planning- Module 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Which one of the following actions would probably not Telling a client that property that is titled in joint tenancy with right of survivorship
constitute the unauthorized practice of law by a will pass outside of probate at his or her death.
nonattorney financial planner?
You are a CFP® Certificant. A client has come to you for I & II
assistance. You should inform the client of which of the
following?
I. You can provide the client with "fill-in-the-blank"
durable power of attorney forms for both finances and
health care, as well as living wills, and help the client
complete and execute these documents.
II. You can be involved in data gathering, identifying
goals, and identifying possible weaknesses and problem
areas in the client's current situation.
III. Your primary role will be working with and
coordinating other financial planning professionals.
IV. You can review the client's current documents to
interpret the contents and indicate what the legal
implications of the document are for the client.
Which one of the following statements regarding Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE),
different forms of property co-ownership is CORRECT? and community property (CP) are all forms of co-ownership that can be used by a
husband and wife.
Which of the following is not a tax goal related to income Freezing or reducing the value of assets subject to tax
tax?
Carrie is preparing her estate plan and wants to include She should leave written instructions to one or more family members likely to
instructions for her funeral. What method should she use? survive her and be involved in funeral arrangements.
Which of the following is a nontax-related financial goal? Maximizing flexibility
Edward and Dennis are brothers who share the Tenancy in common
ownership of a farm they purchased together. Edward
owns an undivided 40% interest in the property, and
Dennis owns an undivided 60% interest. They both have
the right to sell their interest in the farm or to leave their
interest in the farm to anyone they choose under their
will. Which this form of ownership do they have?
CORRECT ANSWERS
Which one of the following actions would probably not Telling a client that property that is titled in joint tenancy with right of survivorship
constitute the unauthorized practice of law by a will pass outside of probate at his or her death.
nonattorney financial planner?
You are a CFP® Certificant. A client has come to you for I & II
assistance. You should inform the client of which of the
following?
I. You can provide the client with "fill-in-the-blank"
durable power of attorney forms for both finances and
health care, as well as living wills, and help the client
complete and execute these documents.
II. You can be involved in data gathering, identifying
goals, and identifying possible weaknesses and problem
areas in the client's current situation.
III. Your primary role will be working with and
coordinating other financial planning professionals.
IV. You can review the client's current documents to
interpret the contents and indicate what the legal
implications of the document are for the client.
Which one of the following statements regarding Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety (TBE),
different forms of property co-ownership is CORRECT? and community property (CP) are all forms of co-ownership that can be used by a
husband and wife.
Which of the following is not a tax goal related to income Freezing or reducing the value of assets subject to tax
tax?
Carrie is preparing her estate plan and wants to include She should leave written instructions to one or more family members likely to
instructions for her funeral. What method should she use? survive her and be involved in funeral arrangements.
Which of the following is a nontax-related financial goal? Maximizing flexibility
Edward and Dennis are brothers who share the Tenancy in common
ownership of a farm they purchased together. Edward
owns an undivided 40% interest in the property, and
Dennis owns an undivided 60% interest. They both have
the right to sell their interest in the farm or to leave their
interest in the farm to anyone they choose under their
will. Which this form of ownership do they have?
