Chapter 19 – Estate Planning
78. (p. 635) Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various
investments worth $600,000 and other personal assets worth $25,000. What are these things
to Gerald?
79. (p. 639) Joseph Vu has assets worth $1,200,000. He has written a legal document that
specifies that these assets be divided equally between his wife and his two sons upon his
death. What is this legal document?
Chapter 19 – Estate Planning
80. (p. 641) Grady Perdue has assets worth $1,500,000 and has written a legal document that
specifies that all of his money go to his children. After he dies, there is a legal process to
determine whether his document specifying how his assets be divided is valid. This is also the
legal process by which his executor manages and distributes his property. What is this legal
process called?
81. (p. 639) A will is:
82. (p. 639) Which one of the following statements is correct regarding wills?
Chapter 19 – Estate Planning
83. (p. 639) If you die without a valid will:
84. (p. 642) Which one of the following wills is called an “I love you” will?
85. (p. 642) Which one of the following wills leaves everything to your spouse?
Chapter 19 – Estate Planning
86. (p. 642) Which will is sufficient for most smaller estates?
87. (p. 642) Which one of the following wills automatically leaves one-half of your adjusted
gross estate to your spouse?
88. (p. 642) Under what type of will is half of your estate taxed at your death and half at your
spouse’s death?
Chapter 19 – Estate Planning
89. (p. 642) Under what type of will does everything pass to your spouse, with the exception of
an amount equal to the exemption, which passes into trust?
90. (p. 642) Which type of will allows you to pass to your spouse any amount that satisfies your
family objective?
91. (p. 643) A handwritten will is called a(n):
Chapter 19 – Estate Planning
92. (p. 643) Which will should be written, dated, and signed entirely in your own handwriting?
93. (p. 643) Which one of the following provides for the disposition of your assets and is usually
prepared with an attorney’s assistance?
94. (p. 643) Which type of will involves serious risks of invalidity and may not reflect the
provisions of current law?
Chapter 19 – Estate Planning
95. (p. 644) A person who will follow your carry out the instructions specified in your will is
called a(n):
96. (p. 646) You should review your will if:
97. (p. 646) Which document explains, adds, or deletes provisions in your existing will?
Chapter 19 – Estate Planning
98. (p. 646) A documentary agreement between spouses before marriage in which one or both
parties often waive a right to receive property under the other’s will or under state law is
called a:
99. (p. 645) A person who assumes the responsibilities of providing the children with personal
care and managing the estate for them is called a(n):
100. (p. 645) A person or institution that holds or generally manages property for the benefit of
someone else under a trust agreement is called a(n):
Chapter 19 – Estate Planning
101. (p. 648) A legal document authorizing someone to act on your behalf is called a:
102. (p. 642) Benjamin Wiley is married and has assets totaling $7 million. What type of will
would most likely result in the lowest overall amount of federal estate taxes? Assume the
exemption amount is $3 million.
103. (p. 642) Matthew Miller has created a will and left everything to his wife Kate. What type
of will has he created?
Chapter 19 – Estate Planning
104. (p. 642) Kate Wilson has created a will that leaves one-half of her adjusted gross estate to
her husband, Matthew. What type of will has she created?
105. (p. 642) Will Jones has created a will that leaves everything to his wife except an exemption
amount of $2 million. This exemption amount passes into a trust. What type of will has Will
created?
106. (p. 642) James Fitzwater has created a will that leaves exactly $2 million to his wife. What
type of will has James created?
Chapter 19 – Estate Planning
107. (p. 643) Brenda Johnson has used a preprinted form that she got from the internet to create
her will. What type of will has she created?
108. (p. 646) Brenda Johnson has used a preprinted form that she got from the internet to create
her will. However, she was unhappy with one section of the will and crossed out the parts she
didn’t like and hand wrote the changes she wanted. The changes that she made most likely
made her will:
109. (p. 644) Benjamin Barry has been named by Andie Anderson to follow her instructions and
distribute her assets as she has designated in her will, pay any bills, and collect any money
owed to her. To which position has Benjamin been named?
Chapter 19 – Estate Planning
110. (p. 645) Hugh Bowersox been selected by Sandra Tyler to assume the responsibility of
raising her children and managing her estate for those children if she were to die. In what
capacity would Hugh be acting?
111. (p. 645) Lucy Kelson has been selected to manage the assets of Rodney Peterson until he
reaches the age of 30. Rodney is currently 21. In what capacity would Lucy be acting?
112. (p. 643) George Wade has been selected to receive the assets of his brother Kyle in the
event of Kyle’s death. What is George?