| 2) With a will alone, my estate will be probated. |
|
True |
|
False |
| 3) A Living Trust is: |
|
a) a legal document that, like a Will, is subject to probate. |
|
b) a legal document that, unlike a Will, avoids probate. |
|
c) a legal document that helps to protect your assets from creditors. |
|
d) a legal document filed with the court to change title to all of your assets at death. |
| 4) The current Federal Estate Tax rate is: |
|
a) 25 percent |
|
b) 35 percent |
|
c) 45 percent |
|
d) 55 percent |
| 5) The current (2006) Federal Estate Tax exemption amount for each U.S. Citizen is? |
|
a) $675,000 |
|
b) $1.5 million |
|
c) $2 million |
|
d) $3.5 million |
| 6) To calculate whether your estate value is above the current Federal Estate Tax exemption amount, the IRS includes the following in your estate: |
|
a) your house, mutual funds, cars and personal property. |
|
b) everything you own, including the proceeds from your life insurance policies. |
|
c) everything you own, except for the proceeds from your life insurance policies. |
|
d) everything you own, except life insurance policies and personal property. |
| 7) The purpose of the Federal Estate Tax Unlimited Marital Deduction is? |
|
a) to eliminate federal estate tax if you are still married when you die. |
|
b) to postpone the Federal Estate Tax until the second spouse dies; i.e., no Federal Estate Tax is levied when the first spouse dies and leaves the estate to the surviving spouse. |
|
c) to allow you to deduct the costs of the marriage from your estate; that's why it's called a marital deduction. |
|
d) to eliminate the Federal Estate Tax, regardless of the amount of accumulated assets; that's why it's called the unlimited marital deduction. |
| 8) According to the U.S. Census Bureau, at what percentage did America's population aged 65 and over grow by between 1965 and 1995? |
|
a) 33 |
|
b) 50 |
|
c) 67 |
|
d) 82 |
9) In 2001, California updated the concept of the Living Will with what is now known as the Advance Health Care Directive. Living Wills drafted prior to the 2001 law change are no longer valid. |
|
True |
|
False |
|
