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1.
You can select a person to act as guardian for your child after your death in your _______.
Will. Guardians for children are named in the parents' wills.
2.
Which of the following may be excluded from financial means testing?
Both life insurance cash values and supplemental needs trusts. Assets held in certain trusts or in life insurance cash values are usually excluded from means testing.
3.
By setting up a custodial investment account for your child, you can shelter a certain amount of its income from taxes.
True. The IRS allows you to shelter some of the income from taxes.
4.
Which of the following are tax breaks that parents can qualify for?
Both of the above. These as well as a few others are some tax breaks that you should investigate if you are a parent or planning to become one.
5.
Perhaps the best reason to build up savings before having a child is that _______.
You may not be working for a while after the child is born. Prepare by building up a savings fund.