CTFA Estate Planning and Administration

Question 1

Which document allows an individual to name a personal representative and specify how their estate should be distributed after death?

Accepted Answer

Last will and testament

Answer

Durable power of attorney

Answer

Living trust

Answer

Beneficiary designation form

Question 2

What is the primary advantage of a revocable living trust over a will in estate planning?

Accepted Answer

Avoidance of probate

Answer

Reduction of estate taxes

Answer

Protection from creditors

Answer

Elimination of gift taxes

Question 3

Under the Uniform Probate Code, what is the order of priority when multiple claims exist against an estate?

Accepted Answer

Funeral costs, administration expenses, then creditor claims

Answer

Creditor claims, then funeral costs, then taxes

Answer

Taxes first, then all creditor claims equally

Answer

All claims paid pro rata from the estate

Question 4

Which type of asset generally passes outside of probate directly to a named beneficiary?

Accepted Answer

Life insurance with a named beneficiary

Answer

Real estate titled solely in the decedent's name

Answer

Personal property listed in the will

Answer

Bank accounts with no beneficiary designation

Question 5

What is a pour-over will in the context of estate planning?

Accepted Answer

A will that directs probate assets into an existing trust

Answer

A will that distributes assets equally among all heirs

Answer

A will used only for minor children's guardianship

Answer

A will that bypasses state intestacy laws

Question 6

In intestate succession, when a decedent leaves a spouse and two adult children, which statement is most commonly true under state law?

Accepted Answer

The spouse and children share the estate according to state statute

Answer

The spouse inherits the entire estate automatically

Answer

Children inherit first before the surviving spouse

Answer

The estate is split equally among all three parties