Estate Planning Comprehensive Final
Exam – Sample fully solved
You are opening a new financial planning practice and you would like to put together a team of
experts to help your clients. Which of the following groups represents the best team to help
your clients? - ANS ✔✔Financial planner, CPA, and attorney.
Which of the following is not a common estate planning goal? - ANS ✔✔Maximizing transfer
costs.
Elizabeth, who is not a licensed attorney, recently started her own financial planning practice.
Which of the following activities would be considered the unauthorized practice of law? - ANS
✔✔Preparing a last will and testament for her first client.
Although he has a vast fortune, Ricky 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? - ANS ✔✔Ricky's insurance
policy on his own life may not be paid out to the named beneficiary.
Claude decides to prepare his will, but does not want to seek the help of an attorney. Claude
handwrites all of the provisions of the will and does not have it witnessed by anyone. What type
of will does Claude have, if any? - ANS ✔✔Holographic
Diana's will leaves all of her property to her husband, George. If he does not survive her by
more than eight months, the property will transfer to Diana's only daughter. Diana dies on May
1 and George dies on the following December 1. Of the following statements, which is correct? -
ANS ✔✔Diana's property will transfer to her daughter and the property will not be eligible for
the unlimited marital deduction in Diana's estate.
, John has a general power of appointment over his father's assets. Which of the following is not
true regarding such a power? - ANS ✔✔John must only appoint money using an ascertainable
standard.
Nellie recently executed a power of attorney giving Jessie the power to perform certain tasks.
Which of the following powers given to Jessie would cause the power to be deemed a general
power of appointment? - ANS ✔✔Nellie gave Jessie the power to use Nellie's money to pay
Jessie's creditors.
Kent, age 38, recently came to you for estate planning advice. He has never executed any estate
planning documents. During the client interview, you learned that Kent has never been married
and has a six-year-old daughter, Kerstin, with his previous girlfriend, Karen. Karen is Kerstin's
custodial parent and Kent sees Kerstin every other weekend. While Kent and Karen are cordial,
the relationship was recently strained when Karen began dating Kent's business partner, Bobby.
Kent is in good health and participates regularly in automobile racing competitions. While Kent
often wins in competitions, he has wrecked his car several times and has been seriously injured.
Because Kent has had so many wrecks, he invested a majority of his $500,000 net worth in a
closely held company to develop a revolutionary steel product that will not bend, crumble or
catch fire. Kent and his business partner, Bobby, are sure that all race car - ANS ✔✔If Kent were
to die today, his assets would transfer via state intestacy laws with Kerstin being the most likely
heir.
Chris and Jenn made the following gifts this year:
Chris gave their son, Evan, a car worth $4,000 owned as community property. Chris also gave his
son his stamp collection (separate property) valued at $60,000.
Chris gave his brother Stephen $20,000 of Chris' separate property so Stephen could purchase a
new home.
Exam – Sample fully solved
You are opening a new financial planning practice and you would like to put together a team of
experts to help your clients. Which of the following groups represents the best team to help
your clients? - ANS ✔✔Financial planner, CPA, and attorney.
Which of the following is not a common estate planning goal? - ANS ✔✔Maximizing transfer
costs.
Elizabeth, who is not a licensed attorney, recently started her own financial planning practice.
Which of the following activities would be considered the unauthorized practice of law? - ANS
✔✔Preparing a last will and testament for her first client.
Although he has a vast fortune, Ricky 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? - ANS ✔✔Ricky's insurance
policy on his own life may not be paid out to the named beneficiary.
Claude decides to prepare his will, but does not want to seek the help of an attorney. Claude
handwrites all of the provisions of the will and does not have it witnessed by anyone. What type
of will does Claude have, if any? - ANS ✔✔Holographic
Diana's will leaves all of her property to her husband, George. If he does not survive her by
more than eight months, the property will transfer to Diana's only daughter. Diana dies on May
1 and George dies on the following December 1. Of the following statements, which is correct? -
ANS ✔✔Diana's property will transfer to her daughter and the property will not be eligible for
the unlimited marital deduction in Diana's estate.
, John has a general power of appointment over his father's assets. Which of the following is not
true regarding such a power? - ANS ✔✔John must only appoint money using an ascertainable
standard.
Nellie recently executed a power of attorney giving Jessie the power to perform certain tasks.
Which of the following powers given to Jessie would cause the power to be deemed a general
power of appointment? - ANS ✔✔Nellie gave Jessie the power to use Nellie's money to pay
Jessie's creditors.
Kent, age 38, recently came to you for estate planning advice. He has never executed any estate
planning documents. During the client interview, you learned that Kent has never been married
and has a six-year-old daughter, Kerstin, with his previous girlfriend, Karen. Karen is Kerstin's
custodial parent and Kent sees Kerstin every other weekend. While Kent and Karen are cordial,
the relationship was recently strained when Karen began dating Kent's business partner, Bobby.
Kent is in good health and participates regularly in automobile racing competitions. While Kent
often wins in competitions, he has wrecked his car several times and has been seriously injured.
Because Kent has had so many wrecks, he invested a majority of his $500,000 net worth in a
closely held company to develop a revolutionary steel product that will not bend, crumble or
catch fire. Kent and his business partner, Bobby, are sure that all race car - ANS ✔✔If Kent were
to die today, his assets would transfer via state intestacy laws with Kerstin being the most likely
heir.
Chris and Jenn made the following gifts this year:
Chris gave their son, Evan, a car worth $4,000 owned as community property. Chris also gave his
son his stamp collection (separate property) valued at $60,000.
Chris gave his brother Stephen $20,000 of Chris' separate property so Stephen could purchase a
new home.
