Estate Planning and Administration Flashcards
6 cards from real CTFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Estate Planning and Administration flashcards as text
Which document allows an individual to name a personal representative and specify how their estate should be distributed after death?
Answer: Last will and testament
A last will and testament is the legal document that names a personal representative (executor) and directs how the decedent's probate estate is distributed.
What is the primary advantage of a revocable living trust over a will in estate planning?
Answer: Avoidance of probate
A revocable living trust allows assets to pass directly to beneficiaries without going through the public, time-consuming probate process.
Under the Uniform Probate Code, what is the order of priority when multiple claims exist against an estate?
Answer: Funeral costs, administration expenses, then creditor claims
Most states prioritize estate administration costs and funeral expenses before general creditor claims when distributing a decedent's estate.
Which type of asset generally passes outside of probate directly to a named beneficiary?
Answer: Life insurance with a named beneficiary
Life insurance proceeds payable to a named beneficiary pass outside of probate and are not subject to the terms of the will.
What is a pour-over will in the context of estate planning?
Answer: A will that directs probate assets into an existing trust
A pour-over will directs any assets that were not transferred into a revocable living trust during life to 'pour over' into the trust at death.
In intestate succession, when a decedent leaves a spouse and two adult children, which statement is most commonly true under state law?
Answer: The spouse and children share the estate according to state statute
Intestate succession laws vary by state, but most split assets between a surviving spouse and children according to a statutory formula.