Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A simple will is a good way to make bequests with "strings attached."
Choose wisely. There is only one correct answer.
False. Trusts are used to make bequests with "strings," since they can be pulled by a trustee.
2.
Which of the following statements is true?
Choose wisely. There is only one correct answer.
Property dispositions arranged outside of probate court stand on their own whether there is a will or not. These non-probate dispositions through beneficiary designations, etc., provide an alternative means of transferring property.
3.
Minimizing taxes is the predominant concern of most people in designing an estate plan.
Choose wisely. There is only one correct answer.
False. Estate taxes are only an issue for those with estates worth more than a certain amount. Even for these folks, there are numerous other, more important family concerns and objectives to plan for.
4.
A will is not of much value to someone without a great deal of property.
Choose wisely. There is only one correct answer.
False. Families often argue about small amounts of money or even trivial household items.
5.
One advantage of life insurance is that the policy proceeds can be payable directly to the person named as beneficiary, thus bypassing probate court.
Choose wisely. There is only one correct answer.
True. The policy payoff can promptly go to whomever you direct, with no probate court involvement, upon proof of your death.