Dollars and Sense: Estate Planning
by Staff
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
  • 18
  • 21
  • 25
  • 35

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?

  • ibidem
  • in terrorum
  • intestate
  • 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?

  • yes
  • no

Is a certain income level necessary if you want to set up a trust for your children?

  • yes
  • no

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?

  • trustee
  • grantor
  • trustor

True or false: The gift tax is higher on estates willed to children than to grandchildren.

  • true
  • false

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?

  • $6,000
  • $12,000
  • $18,000
  • $24,000

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?

  • will
  • trust
  • 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?

  • yes
  • no

Which of these is NOT a type of will?

  • self-probating
  • deathbed
  • self-fulfilling
  • holographic
  • oral

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.

  • true
  • false

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