Reference no: EM132045467

1. Which the following is a risk of failing to plan for the estate?

1. Property transfers contrary to the client’s wishes.

2. The client’s family may not be provided for financially.

3. The estate suffers liquidity problems at the client’s death.

4. The estate may bear higher transfer costs.

A. 2 only.

B. 2 and 3.

C. 1, 3, and 4.

D. 1, 2, 3, and 4.

2. Which of the following documents appoints a surrogate decision-maker for health care?

A. Durable power of attorney for health care.

B. General power of appointment.

C. Life insurance beneficiary designation.

D. All of the above.

3. While he was in the hospital, Emile told his wife that if he died he wanted to give his fishing tackle to his son, Joseph; his golf equipment to his son, Joshua; his truck to his daughter, Abigail; and everything else to her (his wife). Emile died the next day without writing anything that he told his wife, but a nurse and another patient were in the room and heard his declarations. What type of will does Emile have, if any?

A. Holographic.

B. Nuncupative.

C. Statutory.

D Emile does not have a will.

4. Twenty-two years ago, Kyle and John began dating, and 19 years ago, they began living together. Last year, Kyle inherited over $9,000,000 from his grandfather. He wants to ensure that if he dies first, John will be taken care of for the rest of his life. Despite your insistence, Kyle does not have a will, and you have advised him previously that state intestacy laws do not protect same-sex partners. Which of the following asset ownership options would fulfill Kyle’s goal of transferring assets to John at his death?

A. Community property.

B. Tenancy in common with each other.

C. Joint tenancy with rights of survivorship.

D. Tenancy by the entirety.

5. The unrestricted ability to ultimately name beneficiaries of income and corpus of a trust is known as:

A. A HEMS power.

B. A special power of attorney.

C. A crummey power.

D. A general power of appointment.

6. Which of the following is not a party to a trust?

A. Trustee.

B. Income beneficiary.

C. Grantor.