Question 1
2 out of 2 points

If Mr. Smith has two children, under which legal document would he name the guardian?

Selected Answer:
c.
Mr. Smith's Will

Question 2
2 out of 2 points

Ramona transferred appreciated securities into a CRUT. Which of the following is true with respect to the gain on the security?

Selected Answer:
b.
Ramona will pay tax based on the nature of distributions from the trust subject to the trust tax tier rules.

Question 3
0 out of 2 points

Which statement regarding terminable interest property is not correct?

Selected Answer:
b.
A spouse, as income beneficiary of a QTIP trust, will include the value of the trust in her gross estate.

Question 4
2 out of 2 points

Which of the following accounts does not avoid probate?

Selected Answer:
d.
Checking account in Mrs. A's name passing through her will

Question 5
2 out of 2 points

As a CFP® practitioner, what is the first thing you should asses if a client tells you he/she wants to gift a large amount of assets to various family members?

Selected Answer:
a.
Can the client afford the gift?

Question 6
2 out of 2 points

There are 3 types of Powers of Attorney. If an agent has no authority to act on behalf of the principal until the principal becomes incompetent as certified by a physician, which type of power of attorney does he/she hold?

Selected Answer:
b.
Springing Durable POA

Question 7
2 out of 2 points

Which of the following is not a type of account or trust you can use to gift assets to a minor?

Selected Answer:
d.
Estate trust

Question 8
2 out of 2 points

In which of the following situations is a marital deduction disallowed?

Selected Answer:
c.
A husband gave his non-citizen wife $2 million

Question 9
1.33333 out of 2 points

MaryAnn has a gross estate of $20 million. Her husband Duke has an estate of $3 million. MaryAnn would like Duke to receive the right to some income from a trust, and take distributions from the corpus for his maintenance and support. MaryAnn would like to exclude a portion of the trust assets from Duke’s estate and maximize the use of her unified credit. She also wants Duke to have total control over the assets in a trust and choose the trust beneficiary at his death. MaryAnn and Duke further wish to minimize the total estate tax liability for their combined gross estate. What marital transfer techniques will meet their objectives?

Selected Answers:
a.
Power of appointment trust

b.
By-pass trust with an ascertainable standard

Question 10
2 out of 2 points

Which of the following is not a public charity?

Selected Answer:
d.
General Electric

Question 11
2 out of 2 points

The gift tax and the estate tax are cumulative and progressive. Taxable gifts made since 1976 are added to a decedent's estate tax return as an adjusted taxable gift. Why?

Selected Answer:
c.
To position the estate tax into a higher rate bracket

Question 12
2 out of 2 points

Which of the following is a legitimate reason why an individual should not gift to a charity?

Selected Answer:
c.
Donor cannot afford the donation

Question 13
0 out of 2 points

Which of the following GST transfers is not made to a skip person?

Selected Answer:
a.
A gift made from a great uncle to his great nephew.

Question 14
2 out of 2 points

Gary made a loan to his daughter Jill. Jill borrowed $50,000. What is the minimum interest rate Gary can apply on the loan to Jill in order for it to qualify for an intra-family loan?

Selected Answer:
c.
Applicable federal interest rate

Question 15
0 out of 2 points

Bobby made the following transfers this year. Which of the following is an incomplete gift?

Selected Answer:
d.
A portfolio of bonds Bobby transferred to an irrevocable trust she established for her father

Question 16
0 out of 2 points

Which of the following is appropriate use of an inter vivos trust?

Selected Answer:
d.
All of the above

Question 17
2 out of 2 points

When disclaiming property, which of the following is not correct?

Selected Answer:
a.
The refusal or rejection of the benefits may be a verbal disclaimer.

Question 18
2 out of 2 points

What type of wording in a trust will change an ascertainable standard into a general power?

Selected Answers:
b.
Comfort

c.
Welfare

Question 19
0 out of 2 points

Which of the following is an advantage of making a charitable gift of appreciated securities that have been held for more than one year?

Selected Answer:
a.
The charity, not the donor, is responsible for paying the capital gains tax on the sale of the securities.

Question 20
2 out of 2 points

Which of the following gifts can be split?

Selected Answer:
c.
Dan and Julie are married and jointly gave their son $40,000.

Question 21
2 out of 2 points

All of the following is an advantage of probate except:

Selected Answer:
c.
Privacy of decedent's will

Question 22
2 out of 2 points

Which of the following assets do not go through probate?

Selected Answer:
c.
Individual's funded revocable trust

Question 23
2 out of 2 points

Which of the following should be considered when determining which property interest to transfer?

Selected Answer:
e.
All of the above

Question 24
0 out of 2 points

Which of the following is not an intra-family transfer technique?

Selected Answer:
e.
Private Annuity

Question 25
0 out of 2 points

Which power is a general power of appointment?

Selected Answer:
a.
You create a trust for your husband and sister and retain the power to invade the corpus for your husband's health care expenses.

Question 26
0 out of 2 points

Jordan died two months ago. Which of the following assets will be included in Jordan's gross estate?

Selected Answer:
c.
A life insurance policy that Jordan owned on her son's life that she gifted to him one year before she died.

Question 27
0 out of 2 points

Which of the following is not a form of leveraging for gift tax purposes?

Selected Answer:
D.
QPRT

Question 28
2 out of 2 points

Which of the following statements concerning a fiduciary is incorrect?

Selected Answer:
a.
A CFP® practitioner who charges commissions for products sold to clients is not a fiduciary

Question 29
0 out of 2 points

Which of the following techniques can be used to avoid ancillary probate?

Selected Answer:
a.
Title the home as tenants in common with a surviving spouse

Question 30
0 out of 2 points

Which statement is not correct?

Selected Answer:
c.
A By-pass trust eliminates the estate tax in both spouse's estate

Question 31
2 out of 2 points

What is the purpose of trying to qualify a stock redemption as a Section 303 redemption?

Selected Answer:
a.
To avoid being taxed as dividends

Question 32
2 out of 2 points

Which of the following statements regarding a Crummey power is not correct?

Selected Answer:
d.
A Crummey power allows the beneficiary to request all the trust property in a trust.

Question 33
0 out of 2 points

What are the factors when determining competency?

Selected Answer:
b.
Mentally competent

Question 34
2 out of 2 points

Which of the following statements is/are correct in regard to the taxation of installment payments under an installment note?

Selected Answer:
c.
The gain portion of the payment may be subject to capital gains tax

Question 35
2 out of 2 points

What is one of the disadvantages the general partner should consider when setting up a Family Limited Partnership?

Selected Answer:
d.
The general partner is liable for all debt

Question 36
2 out of 2 points

Jennifer is the sole beneficiary of an irrevocable trust created by her father. Income and principal may be distributed to her at the trustee's discretion. Jennifer has a 5-and-5 power of appointment over the trust. Jennifer died last month at which time the trust was valued at $2,500,000. She did not withdraw any money from the trust this year. How much of the trust was included in her estate at death?

Selected Answer:
a.
$125,000

Question 37
0 out of 2 points

Jessie, a wealthy widow, intends to gift property to her daughter, Lindsay, to reduce the value of her gross estate. Which property is best for Jessie to keep?

Selected Answer:
c.
Stock that Jessie owns in a rapidly appreciating tech company worth $11 million

Question 38
0 out of 2 points

Which of the following is not an allowable deduction from the gross estate?

Selected Answer:
a.
Credit card debt

Question 39
0.66666 out of 2 points

All of the following are items of IRD except for:

Selected Answers:
b.
IRA assets

d.
Real Estate

Question 40
2 out of 2 points

Lou set up an ILIT and transferred his life insurance policy with a death benefit of $2 million to the trust. The premiums are $20,000 each year. Lou named his wife Carol and his two children as trust beneficiaries and gave them the right to withdraw the greater of $5,000 or 5% each year. Which statement is NOT correct?

Selected Answer:
b.
Lou can split the premium payments transferred to the trust with Carol to reduce the value of the taxable gifts.

Question 41
2 out of 2 points

Which of the following is considered community property?

Selected Answers:
a.
Property received as a gift and placed in a joint checking account

b.
Wages earned by one of the spouses

d.
401(k) deferrals from earned income of one of the spouses

Question 42
2 out of 2 points

Which of the following is not a step in calculating the estate tax?

Selected Answer:
c.
Determine the value of the probate estate

Question 43
0 out of 2 points

Answering the following case study requires reading the information in this link:

Case Study: Anita Morrison

Which statement regarding incapacity documents is not correct?

Selected Answer:
a.
A durable power of attorney continues until it is revoked by the principal or upon the principal's death.

Question 44
0 out of 2 points

Answering the following case study requires reading the information in this link:

Case Study: Anita Morrison

If Anita decides to make gifts to each of her 5 grandchildren, which one of the following statements is not correct?

Selected Answer:
d.
An irrevocable trust established by Anita for the benefit of her grandchildren who are the only beneficiaries in the trust, is a GST direct skip trust.

Question 45
2 out of 2 points

Answering the following case study requires reading the information in this link:

Case Study: Anita Morrison

Which of the following actions cannot be achieved through Anita's new will?

Selected Answer:
c.
Changing the successor trustee of Anita's revocable trust.

Question 46
2 out of 2 points

Answering the following case study requires reading the information in this link:

Case Study: Anita Morrison

Anita, in her grief, wants to move closer to her daughter Lynn.If Anita were to sell her home today for $810,000 what would be her basis in the property?

Selected Answer:
c.
$421,000

Question 47
2 out of 2 points

Answering the following case study requires reading the information in these links:

Case Study: The Beckers

Case Study: The Beckers (Property Table)

Which statement concerning Martin and Regina's estate plans is NOT correct?

Selected Answer:
b.
If Martin decides to sell Regina's rare coin collection after her death, his basis will be Regina s inherited basis of $180,000.

Question 48
1 out of 2 points

Answering the following case study requires reading the information in these links:

Case Study: The Beckers

Case Study: The Beckers (Property Table)

Which of the following items would be deductible from the gross estate in computing Martin's adjusted gross estate?

Selected Answers:
b.
A bequest of $40,000 to his alma mater

c.
Medical bills to pay for Martin's out-patient therapy three months before he died.

Question 49
0 out of 2 points

Answering the following case study requires reading the information in these links:

Case Study: The Beckers

Case Study: The Beckers (Property Table)

All of the following statements regarding Martin and Regina's estate plans are correct, EXCEPT:

Selected Answer:
d.
After Martin's death, Regina can spend the money in the power of appointment trust without restrictions.

Question 50
1 out of 2 points

Answering the following case study requires reading the information in these links:

Case Study: The Beckers

Case Study: The Beckers (Property Table)

Assume Martin dies two years from today without making any changes to his estate plan. Which of the following assets would qualify either partially or entirely for the marital deduction?

Selected Answers:
c.
Vested profit sharing plan

d.
Assets passing to the By-pass trust