CSS Estate Planning & Wealth Transfer 2

Question 1

What is the federal estate tax exemption amount per individual for 2024?

Accepted Answer

$13.61 million

Answer

The federal estate tax exemption for 2024 is $13.61 million per individual, meaning estates below this threshold owe no federal estate tax.

Question 2

Which planning strategy allows a surviving spouse to use the deceased spouse's unused estate tax exemption?

Accepted Answer

Portability election

Answer

The portability election, filed on a timely estate tax return, allows the surviving spouse to add the deceased spouse's unused exemption to their own.

Question 3

A Qualified Personal Residence Trust (QPRT) is primarily used to:

Accepted Answer

Transfer a home to heirs at a reduced gift tax value

Answer

A QPRT transfers a residence to heirs at a discounted gift tax value by retaining the right to live in the home for a set term.

Question 4

What is the purpose of a spendthrift clause in a trust?

Accepted Answer

It prevents beneficiaries from assigning their interest to creditors

Answer

A spendthrift clause protects trust assets from a beneficiary's creditors by preventing the beneficiary from assigning or pledging their interest.

Question 5

Which document specifies end-of-life medical care preferences and is separate from a financial power of attorney?

Accepted Answer

Living will / advance directive

Answer

A living will or advance directive documents a person's medical care wishes, such as life-sustaining treatment preferences, independent of financial decisions.

(CSS) Certified Senior Specialist Practice Test

(CSS) Certified Senior Specialist Practice Test

CSS Estate Planning & Wealth Transfer 2