Lesson One Quiz:

Click on your response for the correct answer.

1. A trust can accomplish which of the following?

A. Eliminate all your income taxes

B. Reduce estate taxes and other costs

C. Guarantee profitable investments
 

2. Leaving IRA funds to charity can save:

A. federal income taxes

B. federal estate taxes

C. both A and B
 

3. Arranging for liquidity in your estate means:

A. buying water utility stock

B. providing a cash fund to pay debts, taxes

C. investing in oil drilling partnership
 

4. When stock values fall, you should:

A. review your will or living trust

B. consider percentage bequests

C. both A and B
 

5. With regard to finances, spouses should:

A. delegate all money matters to the wife

B. always file separate tax returns

C. educate each other on income/outgo
 

6. A living will allows you to:

A. decide who gets what from your estate

B. distribute your estate during life

C. express medical treatment preferences
 

7. Lifetime gifts are free of gift tax:

A. up to $17,000 per year per donee ($34,000 for spouses)

B. if made to children

C. up to $10,000 per year per donee ($20,000 for spouses)
 

8. Life insurance and jointly owned property:

A. are always free of death taxes

B. pass outside your will

C. become part of your probate estate
 

9. Persons who can be executors include:

A. friends and family members

B. banks, trust companies and attorneys

C. both A and B

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