CEA CEA Beneficiary Designations & Account Titling 2

Question 1

Which of the following is NOT a non-probate transfer method?

Accepted Answer

Bequest in a will

Answer

A bequest in a will transfers property through probate, whereas the other options are contractual or titling mechanisms that bypass probate.

Question 2

When an IRA owner names a trust as beneficiary, the trust must meet specific IRS requirements to qualify for the stretch distribution rules. What is one such requirement?

Accepted Answer

All trust beneficiaries must be individuals, not charities or entities

Answer

For a trust named as an IRA beneficiary to use individual-based RMD rules, all beneficiaries must be identifiable individuals, not charities or non-individual entities.

Question 3

Under the SECURE Act 2.0, most non-spouse beneficiaries of inherited IRAs must withdraw all assets within:

Accepted Answer

10 years

Answer

The SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries, requiring full distribution within 10 years of the original account owner's death.

Question 4

A 'contingent beneficiary' on a retirement account receives benefits when:

Accepted Answer

The primary beneficiary predeceases the account owner

Answer

A contingent beneficiary is a backup who receives retirement account assets only if the primary beneficiary is deceased or disclaims the inheritance.

Question 5

Which titling arrangement allows a property owner to retain full control and use during their lifetime while transferring ownership automatically at death?

Accepted Answer

Transfer on death deed

Answer

A transfer on death (TOD) deed allows the owner to retain full ownership during life and automatically transfers real property to named beneficiaries at death without probate.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA CEA Beneficiary Designations & Account Titling 2