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

Joint tenancy with right of survivorship transfers the deceased owner's share directly to the surviving joint tenant, bypassing the probate process.

Question 2

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

Accepted Answer

The insured's will

Answer

Beneficiary designations on life insurance policies are contractual and override instructions in the policyholder's will.

Question 3

What is a 'per stirpes' beneficiary designation?

Accepted Answer

A deceased beneficiary's share passes to their descendants

Answer

Per stirpes means a deceased beneficiary's share is inherited by their lineal descendants rather than being redistributed among surviving named beneficiaries.

Question 4

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

Accepted Answer

Tenancy by the entirety

Answer

Tenancy by the entirety is a form of ownership reserved exclusively for legally married couples and provides survivorship rights plus creditor protection.

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

A POD designation directs the bank to pay the account balance directly to the named beneficiary upon the account owner's death, bypassing probate.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA CEA Beneficiary Designations & Account Titling