CEA Estate Planning Principles & Strategies

Question 1

What is the primary goal of estate planning?

Accepted Answer

Manage and distribute assets as desired

Answer

To maximize taxes

Answer

Avoid all financial planning

Answer

Ignore legal requirements

Question 2

What is a will in estate planning?

Accepted Answer

A legal document for asset distribution

Answer

A financial report

Answer

A tax form

Answer

A property deed

Question 3

What is a trust in estate planning?

Accepted Answer

Legal arrangement for managing assets

Answer

A type of insurance

Answer

A loan agreement

Answer

A tax document

Question 4

What is probate?

Accepted Answer

Legal validation of a will

Answer

Tax payment

Answer

Creating a trust

Answer

Estate tax exemption

Question 5

What is the benefit of gifting in estate planning?

Accepted Answer

Reducing estate taxes via transfers

Answer

Increasing estate taxes

Answer

Avoiding legal documents

Answer

Delaying asset transfer

Question 6

What is a durable power of attorney?

Accepted Answer

Financial decision authority

Answer

Medical directive

Answer

Will creation

Answer

Trust establishment

Question 7

What role does tax planning play in estate planning?

Accepted Answer

Reducing tax burdens

Answer

Increasing tax liability

Answer

Ignoring tax laws

Answer

Delaying asset transfer

Question 8

What is beneficiary designation?

Accepted Answer

Naming recipients for accounts

Answer

Assigning assets via will only

Answer

Tax document

Answer

Trust document

Question 9

What is the purpose of a living will?

Accepted Answer

Medical treatment instructions

Answer

Financial planning

Answer

Asset distribution

Answer

Tax planning