Dollars and Sense: Estate Planning
Regardless of age, wealth or health, everyone could stand some estate-planning tips. Test your knowledge -- and learn a few helpful hints -- with the Estate Planning quiz.
How old do you have to be to write a will?
- there is no age minimum
What's the document that outlines your health care wishes in case of severe injury or illness?
- living will
- residuary clause
- reciprocal will
What's the word for dying without a will?
- in terrorum
- in extenso
What's something that should NOT be included in a will?
- instructions for foster children
- special gifts of personal property
- life insurance beneficiaries
What happens if you give someone power of attorney but not durable power of attorney?
- Your will becomes null and void.
- It goes out of effect if you become incapacitated.
Are oral wills valid in most states?
Is a certain income level necessary if you want to set up a trust for your children?
How much could the probate process cost?
- 1 to 2 percent of your estate's value
- 2 to 4 percent
- 4 to 6 percent
- 6 to 8 percent
What's the name for the person in charge of a trust's assets?
True or false: The gift tax is higher on estates willed to children than to grandchildren.
Willed assets that aren't put into trusts are subject to a federal gift tax. The gift tax can get as high as 46 percent on estates worth more than this amount.
- $1 million
- $2 million
- $3 million
- $4 million
- $5 million
You can also minimize taxes on your estate by making gifts to your heirs while you're still alive. What are these gifts called?
- intra muros
- inter alia
- inter vivos
What's the maximum inter vivos gift a person can give -- tax-free -- to another person each year?
What's a codicil?
- a stipulation in a will that voids it in certain conditions
- a written amendment to a will
- the introductory part of a will
Which of these items is NOT usually part of an estate plan?
- prenuptial agreements
- power of attorney assignment
- health care proxy
Can you bequeath assets to a beneficiary on a condition -- say, that he or she quits smoking or graduates from college?
Which of these is NOT a type of will?
What is a holographic will?
- a new type of will sealed in a hologram
- an informal, handwritten will
- a will that's beamed onto a wall
True or false: All states prohibit spouses from being completely cut off in a will.
What famous playwright included a contest in his will that called for his fortune to be given to the person who successfully created a new alphabet?
- Noel Coward
- Anton Chekov
- Oscar Wilde
- George Bernard Shaw
- Henrik Ibsen
- Tennessee Williams