Estate Planning Exam 1 questions
with complete solutions
What constitutes the unauthorized practice of law. - correct answer ✔✔ the proffering of legal
advice or services by one who is not a licensed attorney
the professionals necessary to be involved in the estate planning process - correct answer ✔✔
attorney, certified public accountant, life insurance consultant, trust officer, and financial
planner
who needs estate planning? - correct answer ✔✔ everyone needs a basic estate plan to address
healthcare issues, propety management, and ultimate transfer of property according to their
wishes.
risk in failing to plan an estate - correct answer ✔✔ clients property transfer wishes go
unfulfilled
transfer taxes are excessive
transfer costs are excessie
clients family not properly provided for financially
insufficient liquidity to cover clients debts, taxes, and costs at death
need for documents - correct answer ✔✔ no living will or advance medical directive - net worth
may be depleted within 15-45 days after meeting lifetime benefit
no power of attorney for healthcare or property- need to go to court to get things sold/done
no will - his asets may not be distributed according to wishes
, codicil - correct answer ✔✔ an amendment or supplement to a will, seperate document or
attachment to the will. purpose of a codicil is to modify, explain, or amend a will.
with regard to powers given to an agent, know the circumstances under which a power of
attorney would be considered a general power of appointment. - correct answer ✔✔ if the
agent dies before the principal and is holding a general power of appointment over assets of the
principal, the agent's gross estate will include the fair makret value of the principal's assets over
which the agent held the poewr of appointment regardless of whether the power has been
invoked.
general power of attorney - correct answer ✔✔ a stand alone document that allows an agent to
act for the principal and may include the power to appoint assets
power to act
ends at the death of the principal
may be general or limited
may be revoked at any time by the principal
power of appointment - correct answer ✔✔ a power, usually included in a trust or power of
attorney, allowing the power holder to direct assets to another
power to transfer assets
may survive th death of the grantor
may be general or limited
may be revoked by the principal during life or death (via last will and testament)
types of property interest - correct answer ✔✔ realty (real property)
tangible property
intangible property
realty (real property) - correct answer ✔✔ land and anything permanently attached to land
with complete solutions
What constitutes the unauthorized practice of law. - correct answer ✔✔ the proffering of legal
advice or services by one who is not a licensed attorney
the professionals necessary to be involved in the estate planning process - correct answer ✔✔
attorney, certified public accountant, life insurance consultant, trust officer, and financial
planner
who needs estate planning? - correct answer ✔✔ everyone needs a basic estate plan to address
healthcare issues, propety management, and ultimate transfer of property according to their
wishes.
risk in failing to plan an estate - correct answer ✔✔ clients property transfer wishes go
unfulfilled
transfer taxes are excessive
transfer costs are excessie
clients family not properly provided for financially
insufficient liquidity to cover clients debts, taxes, and costs at death
need for documents - correct answer ✔✔ no living will or advance medical directive - net worth
may be depleted within 15-45 days after meeting lifetime benefit
no power of attorney for healthcare or property- need to go to court to get things sold/done
no will - his asets may not be distributed according to wishes
, codicil - correct answer ✔✔ an amendment or supplement to a will, seperate document or
attachment to the will. purpose of a codicil is to modify, explain, or amend a will.
with regard to powers given to an agent, know the circumstances under which a power of
attorney would be considered a general power of appointment. - correct answer ✔✔ if the
agent dies before the principal and is holding a general power of appointment over assets of the
principal, the agent's gross estate will include the fair makret value of the principal's assets over
which the agent held the poewr of appointment regardless of whether the power has been
invoked.
general power of attorney - correct answer ✔✔ a stand alone document that allows an agent to
act for the principal and may include the power to appoint assets
power to act
ends at the death of the principal
may be general or limited
may be revoked at any time by the principal
power of appointment - correct answer ✔✔ a power, usually included in a trust or power of
attorney, allowing the power holder to direct assets to another
power to transfer assets
may survive th death of the grantor
may be general or limited
may be revoked by the principal during life or death (via last will and testament)
types of property interest - correct answer ✔✔ realty (real property)
tangible property
intangible property
realty (real property) - correct answer ✔✔ land and anything permanently attached to land
