CEA CEA Beneficiary Designations & Account Titling

Question 1

Which type of account titling allows property to pass directly to a surviving co-owner without going through probate?

Accepted Answer

Joint tenancy with right of survivorship

Answer

Tenancy in common

Answer

Community property

Answer

Sole ownership

Question 2

A beneficiary designation on a life insurance policy generally supersedes which document?

Accepted Answer

The insured's will

Answer

The policy's incontestability clause

Answer

The state intestacy statute

Answer

The insurance company's bylaws

Question 3

What is a 'per stirpes' beneficiary designation?

Accepted Answer

A deceased beneficiary's share passes to their descendants

Answer

Assets split equally among all living beneficiaries

Answer

Assets revert to the estate if a beneficiary predeceases

Answer

Equal shares only to named individuals

Question 4

Which account titling method is only available to legally married couples in community property states?

Accepted Answer

Tenancy by the entirety

Answer

Joint tenancy with right of survivorship

Answer

Transfer on death

Answer

Tenancy in common

Question 5

A POD (Payable on Death) designation on a bank account allows the account to:

Accepted Answer

Transfer automatically to the named beneficiary upon the owner's death

Answer

Be managed by a trustee during the owner's lifetime

Answer

Avoid federal estate taxes entirely

Answer

Pass through probate to heirs

Question 6

Failing to update beneficiary designations after a divorce can result in:

Accepted Answer

The former spouse receiving assets contrary to the account owner's current wishes

Answer

Automatic revocation of the former spouse's interest in all states

Answer

Immediate invalidation of the account

Answer

The state receiving the assets by default