CEA Beneficiary Designations & Account Titling Flashcards
6 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CEA Beneficiary Designations & Account Titling flashcards as text
Which of the following is NOT a non-probate transfer method?
Answer: Bequest in a will
A bequest in a will transfers property through probate, whereas the other options are contractual or titling mechanisms that bypass probate.
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?
Answer: All trust beneficiaries must be individuals, not charities or entities
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.
Under the SECURE Act 2.0, most non-spouse beneficiaries of inherited IRAs must withdraw all assets within:
Answer: 10 years
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.
A 'contingent beneficiary' on a retirement account receives benefits when:
Answer: The primary beneficiary predeceases the account owner
A contingent beneficiary is a backup who receives retirement account assets only if the primary beneficiary is deceased or disclaims the inheritance.
Which titling arrangement allows a property owner to retain full control and use during their lifetime while transferring ownership automatically at death?
Answer: Transfer on death deed
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.
Community property states give each spouse an equal interest in marital assets. What is the primary estate planning advantage of community property?
Answer: Both halves receive a full step-up in basis at the first spouse's death
In community property states, both the deceased and surviving spouse's halves of community property receive a stepped-up basis at death, minimizing capital gains taxes when the surviving spouse later sells.