AEP Fiduciary Responsibilities & Professional Collaboration

Question 1

What is a fiduciary's primary legal duty in estate planning?

Accepted Answer

To act in the beneficiary's best interest.

Answer

To maximize their own profit.

Answer

To follow the court's advice.

Answer

To avoid taxes at all costs.

Question 2

Which professional is typically responsible for managing trust assets?

Accepted Answer

Trustee

Answer

Financial advisor

Answer

Insurance agent

Answer

Executor

Question 3

Why is interdisciplinary collaboration important in estate planning?

Accepted Answer

To ensure all areas of expertise are represented.

Answer

To avoid hiring staff.

Answer

To complete the plan faster.

Answer

To avoid estate planning completely.

Question 4

Who is primarily responsible for filing estate tax returns?

Accepted Answer

Executor

Answer

CPA

Answer

Financial planner

Answer

Beneficiary

Question 5

What duty requires a fiduciary to keep beneficiaries informed of estate matters?

Accepted Answer

Duty to disclose

Answer

Duty of loyalty

Answer

Duty of investment

Answer

Duty of enforcement

Question 6

Which professional would most likely provide tax minimization strategies in an estate plan?

Accepted Answer

CPA

Answer

Trustee

Answer

Attorney

Answer

Insurance broker

Question 7

When might an estate planning attorney collaborate with an insurance professional?

Accepted Answer

When designing an ILIT for life insurance.

Answer

When purchasing a vacation home.

Answer

When changing medical providers.

Answer

When opening a credit card.

Question 8

Which fiduciary role involves distributing a decedent’s assets under a will?

Accepted Answer

Executor

Answer

Trustee

Answer

CPA

Answer

Attorney

Question 9

What is one benefit of collaboration among estate planning professionals?

Accepted Answer

Creates an integrated and effective plan.

Answer

Reduces client meetings.

Answer

Eliminates documentation.

Answer

Increases paperwork and delays.