Estate Planning Quiz

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A good estate strategy will ensure that your final wishes are carried out in the event of your death and your assets are transferred to your heirs in a tax efficient manner.
What do you know about estate planning? Take this quiz and see:
1. Probate is:
a. The legal document that must accompany any will
b. A court-supervised estate administration process
c. The assets that a lawyer manages
d. The untaxed portion of an estate
2. The gross estate is:
a. The value of the estate subject to tax
b. The liquid assets of the decedent
c. The assets of the decedent that have no beneficiary designation
d. All assets of the decedent
3. The probate estate is:
a. The value of the estate subject to tax
b. The liquid assets of the decedent
c. The assets of the decedent that have no beneficiary designation
d. All assets of the decedent
4. A living trust:
a. Is subject to probate
b. Avoids taxation
c. By-passes probate and provides for immediate distribution of trust assets
d. Is difficult to setup and administer
5. Select the two primary ways to avoid probate.
a. A living trust and beneficiary designation
b. A beneficiary designation and a will
c. IRS election to by-pass probate and a living will
d. None of the above
6. The estate and gift tax exemption for 2019 is:
a. $5.6 million
b. $250,000
c. $3.5 million
d. $11.4 million

7. The unlimited marital deduction can’t be used when the surviving spouse is:
a. Older than the deceased spouse
b. Is a noncitizen
c. Dies simultaneously
d. Can always be used
8. The primary role of an executor is to:
a. Carry out the Will’s terms and settle the estate
b. Make sure that all heirs are fairly treated
c. Ensure that minor children are cared for
d. Guarantee that final wishes are carried out
9. You can avoid a taxable gift by:
a. Gifting up to the gift tax exclusion amount
b. Gifting directly to medical providers or educational institutions for qualifying expenses of the done
c. All gifts are taxable
d. A & B
10. The Gift Tax Exclusion for 2019 is:
a. $5,000
b. $11,000
c. $15,000
d. $0
Answers
1. B
2. D
3. C
4. B
5. A
6. D
7. B
8. A
9. D
10. C
Scoring

  • 8-10 Correct: Excellent job!
  • 6-7 Correct: Pretty Good.
  • 0-5 Correct: Join the club.

Regardless of your score, please consult a professional with expertise in estate management regarding your situation.

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