CT CT Legal & Financial Aspects of Death 2 — Questions and Answers
Question 1: Which of the following is NOT typically addressed in an advance directive?
- Healthcare proxy designation
- Organ donation wishes
- Distribution of financial assets to heirs (Correct answer)
- End-of-life treatment preferences
Correct answer: Distribution of financial assets to heirs
Advance directives address healthcare decisions only; financial asset distribution is handled separately through a will or trust.
Question 2: A POLST (Physician Orders for Life-Sustaining Treatment) form differs from a living will primarily because it is:
- Only applicable to patients over age 65
- A physician-signed medical order that is immediately actionable in any care setting (Correct answer)
- A document covering financial decisions at end of life
- A form requiring court approval before implementation
Correct answer: A physician-signed medical order that is immediately actionable in any care setting
Unlike a living will which is a patient directive, a POLST is a physician's medical order that care providers can act upon immediately without further interpretation.
Question 3: Life insurance proceeds paid to a named beneficiary are generally:
- Subject to probate and distributed per the will
- Taxed as ordinary income by the IRS
- Paid directly to named beneficiaries, bypassing probate entirely (Correct answer)
- Distributed equally among all legal heirs
Correct answer: Paid directly to named beneficiaries, bypassing probate entirely
Life insurance proceeds pass directly to named beneficiaries outside of probate, regardless of the will's contents, because of the beneficiary designation contract.
Question 4: Which legal document establishes an arrangement where a trustee manages assets on behalf of designated beneficiaries?
- Will
- Trust (Correct answer)
- Power of attorney
- POLST
Correct answer: Trust
A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of designated beneficiaries, often avoiding probate.
Question 5: What is the primary purpose of comprehensive estate planning in end-of-life contexts?
- To minimize taxes as the sole objective
- To ensure a person's wishes for both asset distribution and healthcare decisions are honored (Correct answer)
- To prevent family members from contesting after death
- To establish funeral plans exclusively
Correct answer: To ensure a person's wishes for both asset distribution and healthcare decisions are honored
Estate planning encompasses both financial asset distribution and healthcare directives to ensure the full range of a person's end-of-life wishes are honored.
Question 6: Regarding Social Security survivor benefits, what is the recommended action following a beneficiary's death?
- Report within 7 days by law
- Report within 30 days as required by federal statute
- Report within 90 days through the estate attorney
- Notify the SSA promptly to prevent overpayments that must be returned (Correct answer)
Correct answer: Notify the SSA promptly to prevent overpayments that must be returned
While no strict statutory deadline exists for death notification, prompt reporting to the SSA prevents overpayments that survivors must return and allows timely processing of survivor benefits.
CT CT Legal & Financial Aspects of Death 2
Which of the following is NOT typically addressed in an advance directive?