Estate Planning Final Exam Questions
with complete solutions
Effie and Edric, a married couple who live in Kansas, buy a house as JTWROS. Effie pays
$500,000 for the house from an inheritance she received. Effie dies six years later when the
house is valued at $800,000. Which is true?
$400,000 of the house value will be in Effie's gross estate; $400,000 of the house value will be in
Effie's probate estate.
$500,000 of the house value will be in Effie's gross estate; $0 of the house value will be in Effie's
probate estate.
$800,000 of the house value will be in Effie's gross estate; $400,000 of the house value will be in
Effie's probate estate.
$400,000 of the house value will be in Effie's gross estate; $0 of the house value will be in Effie's
probate estate. - ANS ✔✔$400,000 of the house value will be in Effie's gross estate; $0 of the
house value will be in Effie's probate estate.
Enid, who lives in Kansas, is on her deathbed when she announces to her two children and a
nurse that she wants her youngest granddaughter to receive her diamond engagement ring.
1. The two children must sign a statement agreeing to Enid's wishes.
2. This declaration is not valid.
,3. The nurse must write this statement down and have Enid sign and date it to be valid.
4. This is a nuncupative will and is valid if written down and signed by witnesses. - ANS ✔✔4
Elon adds his son Foster to his checking account as JTWROS. The account has $50,000. What are
the tax implication at the time of the gift?
Elon has made a $30,000 gift to Foster.
Elon has made a $50,000 gift to Foster.
There is no gift.
Elon has made a $25,000 gift to Foster. - ANS ✔✔There is no gift
Stocks and bonds are
real property.
intangible real property.
tangible personal property.
intangible personal property. - ANS ✔✔Intangible personal property
Ewan, a journalist, was in the process of buying a new home when he was assigned overseas to
cover a breaking story. Before Ewan leaves, he calls you, his financial planner. He wants his sister
Emilia to attend the real estate closing on his place, but he does not want her to represent him
in other financial transactions while he is away or when he returns home. What document does
he need?
Springing nondurable power of attorney
General power of attorney
Power of appointment
,Durable power of attorney - ANS ✔✔Springing nondurable power of attorney
Ed and Ebba, although not married, have been living together for several years. Ed, who is quite
wealthy, wants to leave the bulk of his estate to Ebba when he dies. Ed anticipates that his
children will contest the will. Which of the following would ensure that Ebba will receive an
asset following Ed's death?
Ed should title assets that he wants Ebba to receive as JTWROS.
Ed should write a will leaving a nominal amount to his children and the remainder to Ebba.
Ed should let the Probate Court decide.
Ed should write a will leaving everything to Ebba. - ANS ✔✔Should title assets that he wants
Ebba to receive JTWROS
Which of the following documents appoints a surrogate decision-maker for health care?
General power of appointment
Durable power of attorney for health care
Do not resuscitate order
Living will - ANS ✔✔Durable power of attorney for health care
Eugenia and Erwin own an apartment building as JTWROS. Eugenia paid $300,000 and Erwin
paid $200,000 when they purchased the building. Eugenia dies. How much will be included in
her gross estate if the building is valued at $1 million when she died?
$500,000
$600,000
$300,000
, $1 million - ANS ✔✔600,000. When she dies its valued at what she put in in the beginning
Which of the following is considered an advantage of the probate process?
Heirs receive property with clear title.
The probate process is less expensive than other transfer mechanisms.s.than other transfer
mechanisms.
Information that is filed with the court remains private.
The probate process can be accomplished quickly. - ANS ✔✔Heirs receive property with a clear
title
Enrico died. He lived in and solely owned a home in Kansas. He also owned a home in Florida.
Enrico did not have a will. Which of the following is the best answer?
Since he died intestate, none of his assets will be subject to probate.
All of his assets will go through probate in Florida.
His house in Kansas will go through probate in Kansas and the house in Florida will be subject to
ancillary probate.
All of his assets will go through probate in Kansas. - ANS ✔✔His house in Kansas will go through
probate in Kansas and the house
Elon adds his son Foster to his checking account as JTWROS. The account has $50,000. Foster
withdraws $30,000. Which is true?
Foster could not withdraw $30,000 because he only owns half of the account.
Elon has made a $30,000 gift to Foster.
No gift has been made.
Elon has made a $25,000 gift to Foster. - ANS ✔✔Elon has made a $30,000 gift to Foster.
with complete solutions
Effie and Edric, a married couple who live in Kansas, buy a house as JTWROS. Effie pays
$500,000 for the house from an inheritance she received. Effie dies six years later when the
house is valued at $800,000. Which is true?
$400,000 of the house value will be in Effie's gross estate; $400,000 of the house value will be in
Effie's probate estate.
$500,000 of the house value will be in Effie's gross estate; $0 of the house value will be in Effie's
probate estate.
$800,000 of the house value will be in Effie's gross estate; $400,000 of the house value will be in
Effie's probate estate.
$400,000 of the house value will be in Effie's gross estate; $0 of the house value will be in Effie's
probate estate. - ANS ✔✔$400,000 of the house value will be in Effie's gross estate; $0 of the
house value will be in Effie's probate estate.
Enid, who lives in Kansas, is on her deathbed when she announces to her two children and a
nurse that she wants her youngest granddaughter to receive her diamond engagement ring.
1. The two children must sign a statement agreeing to Enid's wishes.
2. This declaration is not valid.
,3. The nurse must write this statement down and have Enid sign and date it to be valid.
4. This is a nuncupative will and is valid if written down and signed by witnesses. - ANS ✔✔4
Elon adds his son Foster to his checking account as JTWROS. The account has $50,000. What are
the tax implication at the time of the gift?
Elon has made a $30,000 gift to Foster.
Elon has made a $50,000 gift to Foster.
There is no gift.
Elon has made a $25,000 gift to Foster. - ANS ✔✔There is no gift
Stocks and bonds are
real property.
intangible real property.
tangible personal property.
intangible personal property. - ANS ✔✔Intangible personal property
Ewan, a journalist, was in the process of buying a new home when he was assigned overseas to
cover a breaking story. Before Ewan leaves, he calls you, his financial planner. He wants his sister
Emilia to attend the real estate closing on his place, but he does not want her to represent him
in other financial transactions while he is away or when he returns home. What document does
he need?
Springing nondurable power of attorney
General power of attorney
Power of appointment
,Durable power of attorney - ANS ✔✔Springing nondurable power of attorney
Ed and Ebba, although not married, have been living together for several years. Ed, who is quite
wealthy, wants to leave the bulk of his estate to Ebba when he dies. Ed anticipates that his
children will contest the will. Which of the following would ensure that Ebba will receive an
asset following Ed's death?
Ed should title assets that he wants Ebba to receive as JTWROS.
Ed should write a will leaving a nominal amount to his children and the remainder to Ebba.
Ed should let the Probate Court decide.
Ed should write a will leaving everything to Ebba. - ANS ✔✔Should title assets that he wants
Ebba to receive JTWROS
Which of the following documents appoints a surrogate decision-maker for health care?
General power of appointment
Durable power of attorney for health care
Do not resuscitate order
Living will - ANS ✔✔Durable power of attorney for health care
Eugenia and Erwin own an apartment building as JTWROS. Eugenia paid $300,000 and Erwin
paid $200,000 when they purchased the building. Eugenia dies. How much will be included in
her gross estate if the building is valued at $1 million when she died?
$500,000
$600,000
$300,000
, $1 million - ANS ✔✔600,000. When she dies its valued at what she put in in the beginning
Which of the following is considered an advantage of the probate process?
Heirs receive property with clear title.
The probate process is less expensive than other transfer mechanisms.s.than other transfer
mechanisms.
Information that is filed with the court remains private.
The probate process can be accomplished quickly. - ANS ✔✔Heirs receive property with a clear
title
Enrico died. He lived in and solely owned a home in Kansas. He also owned a home in Florida.
Enrico did not have a will. Which of the following is the best answer?
Since he died intestate, none of his assets will be subject to probate.
All of his assets will go through probate in Florida.
His house in Kansas will go through probate in Kansas and the house in Florida will be subject to
ancillary probate.
All of his assets will go through probate in Kansas. - ANS ✔✔His house in Kansas will go through
probate in Kansas and the house
Elon adds his son Foster to his checking account as JTWROS. The account has $50,000. Foster
withdraws $30,000. Which is true?
Foster could not withdraw $30,000 because he only owns half of the account.
Elon has made a $30,000 gift to Foster.
No gift has been made.
Elon has made a $25,000 gift to Foster. - ANS ✔✔Elon has made a $30,000 gift to Foster.
