Home > Financial Literacy > Quizzes > Personal Finance: Estate Planning
Personal Finance: Estate Planning
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 40% • Most missed: “You know that the advantages of having a will likely outweigh the disadvantages …”

What is Estate Planning?
Estate planning is the process of designating who will receive your assets in the event of your death or incapacitation.

Estate planning vs Living will:
Basically, an estate plan is a broader plan of action for your assets that may apply during your life as well as after your death. A will, on the other hand, dictates where your assets will go after you die, who will be the guardian of your children and more.
 

Personal Finance: Estate Planning
Time left 00:00
25 Questions

1. All of the following are commonly used estate planning tools except
2. The unified tax credit
3. What does the generation skipping tax do?
4. The ________ allows for the distribution of money and property in a will.
5. Giving assets away as a gift reduces the value of your estate and allows you to help your heirs while you're still alive.
6. The legal procedure that establishes the validity of a will, and then distributes the assets of the estate including the payment of any taxes, is called
7. We may prepare a ________ to appoint someone to legally act on our behalf in the event we become mentally incapacitated and a ________ to state our wishes in the event of a terminal illness or injury.
8. The unified tax credit effectively nullifies the taxes on the first $5.34 million of one's estate.
9. Madonna is a famous singer; as such, she may select to settle her estate through a trust because of which reason(s)?
10. Herbert's will is missing the section revoking any earlier wills- A young lawyer prepared the will and made this oversight- What dangers are present because of this omission?
11. If you were to create a trust by your will, which becomes active only after you die, then you have created a(n) ________.
12. The introductory statement of a will identifies whose will it is and revokes any prior wills.
13. A ________ provides a directive to a physician that allows you to state your wishes regarding medical treatment in the event of a terminal illness or injury that renders you unable to make decisions regarding life support or other medical treatments.
14. Carey is a widow with two teenagers, Brenda age 13 and Terry age 15- Her health has declined and she knows that a will should be drafted- Which of the following statements is not an important reason to have a will?
15. You are engaging in ________ when you plan for what happens to your accumulated wealth and your dependents after you die, as well as determining decision-making authority should you be physically or mentally impaired.
16. Trusts are much more difficult to challenge in court than are wills which is what makes them more attractive.
17. Which of the following is a disadvantage of joint ownership?
18. Through the portable estate exemption a surviving spouse's exemption amount will do which of the following?
19. A will is a legal document that describes how you want your property to be transferred to others.
20. One in 10 American adults who do not have any elements of an estate plan in place say that they haven't created a plan because they don't want to think about dying or becoming incapacitated.
21. Someone who receives assets or money from a person after death is called the deceased's
22. Under joint tenancy with the right of survivorship, two or more individuals share ownership of the assets; when one of the owners dies that owner's share of the assets becomes part of the deceased's estate and is distributed according to the deceased's will.
23. If you have children from a previous marriage and you get remarried and own property jointly with your new spouse, then tenancy by the entirety should be sufficient for you if you wish your children to inherit your property.
24. In some states, property that is acquired during a marriage is referred to as ________ and upon the death of either spouse, his/her half is distributed according to the will, or if intestate, according to state law.
25. In most states, community property is recognized and trumps any allocations in your will.

⚡ Recently practiced quizzes in this topic
Live quiz activity
Personal Finance: Student and Consumer Loans Personal Finance: The Financial Planning Process Personal Finance: Cash or Liquid Asset Management Personal Finance Literacy Exam 4 Personal Finance: Life and Health Insurance FBLA Personal Finance Review Personal Finance Literacy Exam 6 Financial Literacy Quiz Financial Literacy Vocab Certified Personal Finance Counselor
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.