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Multiple Choice Quiz
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1
James Levine has written a will that leaves half of his estate to his wife. The other half of his estate is to be equally divided among his three children. What type of will has James written?
A)A simple will
B)A traditional marital share will
C)An exemption trust will
D)A stated dollar amount will
E)None of the above
2
Zuzana Krumlova has just found out that she has been named to raise and provide the personal care of the children of Stacia Gray in her will. What is the term for what Zuzana is in this will?
A)A beneficiary
B)A trustee
C)A guardian
D)An executor
E)None of the above
3
Karen Clark has a handwritten will with no printed or typed information. It is signed and dated in her own handwriting. What type of will has she made?
A)A holographic will
B)A formal will
C)A statutory will
D)A living will
E)None of the above
4
Arnell Johnson has decided to create a trust. The type of trust he has created cannot be ended or changed. What type of trust has Arnell created?
A)Revocable trust
B)Irrevocable trust
C)Changeable trust
D)Nonchangeable trust
E)None of the above
5
Alexis Downs is worried about estate taxes. She has formed a trust that pays her an annuity as long as she lives but also allows her to pass on her valuable assets to her children with minimal taxes. What type of trust has she likely formed?
A)Credit-shelter trust
B)Grantor retained annuity trust
C)Disclaimer trust
D)Marital-deduction trust
E)None of the above
6
Which of the following are advantages of a living trust?
A)It ensures privacy because a trust is not a public record while a will is.
B)The property in the trust avoids probate and so avoids probate costs and delays.
C)It can remove management responsibilities from your shoulders.
D)It is less subject to dispute by disappointed heirs.
E)All of the above are advantages of a living trust.
7
Tom Collins has written a will that specifies that a trust be created at the time of his death. What type of trust would be created at the time of his death?
A)A living trust
B)A self-declaration trust
C)A testamentary trust
D)A life insurance trust
E)None of the above
8
Jack Carter owns a condominium on the beach in Charleston, South Carolina. Jack wants to get this vacation home out of his estate. What type of trust could help him do this?
A)A charitable remainder trust
B)A qualified personal residence trust
C)A generation skipping trust
D)A spendthrift trust
E)None of the above
9
When is federal estate tax due?
A)At the time of your death
B)Three months after your death
C)Six months after your death
D)Nine months after your death
E)There is no federal estate tax.
10
A(n) _______________ is a legal document that allows someone else to act on your behalf.
A)Trustee
B)Guardian
C)Will
D)Power if attorney
E)None of the above





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