1. Which of the following is not an estate planning goal?
a. Maximizing the gross estate.
b. Minimizing transfer taxes.
c. Providing for liquidity at death.
d. Fulfilling client’s healthcare decisions.
2. As a financial planner, you are preparing for a meeting with a new client, Jorge. What would you most likely ask Jorge to bring to the meeting?
a. Pictures of his children.
b. His parents.
c. Any will and codicil.
d. Sales records for his business.
3. Although he has a vast fortune, Tricky has decided not to prepare an estate plan because he believes that his surviving family members will divide up his assets appropriately. Which of the following is not a risk associated with failing to plan an estate?
a. Tricky’s estate could incur excessive transfer taxes.
b. Tricky’s favorite car may not be transferred to his ex-wife, Carla.
c. Tricky’s insurance policy on his own life may not be paid out to the named beneficiary.
d. Tricky’s current wife, Dixie, may not provide for his children from a previous marriage.
4. Which of the following activities would be considered the unauthorized practice of law for a financial planner who is not a licensed attorney?
a. Preparing a will for a client.
b. Helping a client to identify his financial planning goals.
c. Preparing financial statements for a prospective client.
d. Reading the will and trusts for a client.
5. Which of the following advisors is/are qualified to give estate planning advice?
1. Attorneys.
2. CPAs.
3. Financial planners.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2 and 3.
6. Estate planning is an important aspect for which of the following?
1. Probate and succession and planning.
2. Comprehensive financial planning.
3. Retirement planning.
a. 1 only.
b. 1 and 2.
c. 2 and 3.
d. 1, 2 and 3.
7. The best definition of estate planning is:
a. A plan for the disposition of all assets at death.
b. A plan for managing property during lifetime and at death.
c. Titling and beneficiary naming.
d. Investment planning.
8. Failure to have an estate plan can lead to:
a. Increased costs.
b. Delays.
c. Assets passing to unintended people.
d. All of the above.
9. All of the following are transfer costs associated with estate planning except:
a. Attorney fees for documents.
b. Costs of retitling real estate.
c. Estate and inheritance taxes.
d. Property taxes on inherited property.
10. You, as a non-attorney CFP®, are asked to assist one of your clients who is very frugal to prepare her will using legalzoom.com. Which is correct?
a. It is permissible as long as you get a waiver from your client.
b. It is permissible as long as you are not a heir, legatee or beneficiary.
c. Legalzoom is not very good and you should direct her to “will maker.”
d. You cannot assist her.