1. Since you're allowed to give $ 11,000 a year tax-free to an individual, how much may you and your spouse give your married son for a down payment this year without having to file a gift-tax return?
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11,000
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22,000
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44,000
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88,000
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2. Which estate-planning technique effectively lets you and your spouse double the amount of assets you can shield from estate taxes?
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a QTIP trust
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an irrevocable life insurance trust
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a bypass trust
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a charitable remainder trust
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3. The purpose of a living will is to:
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Appoint someone to make medical decisions for you if you become incapacitated.
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Let doctors know what kind of life-sustaining medical intervention you want if you have a terminal condition
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Tell your heirs how well they should treat you if they expect to get anything from you after you die
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4. Why can you and your heirs get a tax break if you put your home in a qualified personal residence trust or QPRT?
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You're dedicating your home to a charitable cause.
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The IRS considers the value of your gift (your home) to be less than its present market value, since the gift recipients don't receive it for a number of years.
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You agree to surrender control of your home over a 30-year period.
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The value of your home ultimately benefits your children.
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5. Who needs a will?
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Parents of minors
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People with more than $ 650,000 in assets
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Retired persons
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All of the above
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6. If you have $ 800,000 in stocks and bonds, what amount can you leave to your spouse free of estate taxes?
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0
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400,000
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650,000
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800,000
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7. If you want to direct assets to good causes after you die, which of the following can grow the charitable dollars you give now and pool them with money from other donors?
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An irrevocable trust
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A community foundation
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A bypass trust
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"I love you" wills
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8. If you give away $ 200,000 more than your lifetime gift-tax exclusion and you die within three years of making that gift, you will:
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Be VERY fondly remembered by the gift recipient
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Incur the wrath of the gift recipient because he or she will now have to pay a hefty gift tax
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Have to pay gift tax on the $ 200,000
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Have that $ 200,000 subtracted from your estate-tax exemption.
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9. When should you review your will?
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Every time your marital status changes
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Every few years
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When you have kids
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All of the above.
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10. Who's the best person to assign power of attorney:
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Your oldest child
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A lawyer friend
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A relative
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A spouse
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None of the above
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