Estate Planning Knowledge

A visually engaging illustration depicting the concepts of estate planning, including elements like wills, trusts, and family dynamics, with a serene and professional backdrop.

Estate Planning Knowledge Quiz

Test your understanding of estate planning with our comprehensive quiz. Whether you're a beginner or looking to refresh your knowledge, this quiz will help you grasp essential concepts related to trusts, wills, and probate.

Key Features:

10 multiple-choice questions
Instant feedback on your answers
Improve your estate planning knowledge

10 Questions2 MinutesCreated by PlanningExpert12

What is a trust?

A trust is a fiduciary relationship in which one party, known as the grantor, gives another party, the trustee, the authority to oversee the management and distribution of the assets for the benefit of the third party, the beneficiary.

A trust is a set of documents that are regulated by probate court.

Who needs a trust?

Anyone who has assets and would like to ensure that those assets go to persons of their choice without the court’s involvement

Anyone looking to divide assets among family members in a will, publicly.

What is a will?

A will is a document that expresses one’s wishes as to how he or she would like assets to be distributed upon death.

A will is a legal document that secures one’s estate along with reducing exposure to estate taxes

What is probate court for?

Probate court is a segment of the judicial system that primarily handles such matters as wills, estates, conservatorships, and guardianships, as well as the commitment of mentally ill persons to institutions designed to help them.

Probate court is a segment of the judicial system that only handles matters relating to wills.

As it relates to the will, the person left in charge of one’s affairs upon death is called a __________.

Personal representative or executor

Trustee or administrator

Upon the death of the grantor of a trust, the person left in charge of affairs is called a __________.

Backup Trustee

Successor Trustee

In a trust, what is the role of the trustee?

A trustee’s role is to adhere to the language stipulated in the trust by the grantor.

A trustee’s role is to distribute assets to the general public.

The creator of the trust is called a __________.

Grantor, maker, or trustor

President, manager , or administrator

How are assets transferred into a trust?

To transfer assets such as investments, bank accounts, real estate, etc., you will need to complete an asset transfer form, accompanied by a trust certificate (a conveyance deed will also be needed for real estate).

To transfer assets, you will need to draft a document stating which assets you want to place in the trust and have each beneficiary sign the document; legal assistance is not required.

What is an estate plan?

An estate plan involves decisions relating to how an individual’s assets will be preserved, managed, and distributed after death or becoming incapacitated.

An estate plan is a document that is governed by the jurisdiction in which the benefactor resides.

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