Free CFC Estate Planning Questions and Answers

Question 1

What is the primary goal of estate planning?

Accepted Answer

To ensure the efficient transfer of assets to heirs

Answer

The primary goal of estate planning is to ensure that a person's assets are distributed according to their wishes, as efficiently and cost-effectively as possible.

Question 2

Which legal document specifies how a person's assets should be distributed after their death?

Accepted Answer

Last will and testament

Answer

A last will and testament is a legal document that outlines how a person's assets should be distributed after their death.

Question 3

What is the main advantage of setting up a revocable living trust?

Accepted Answer

Avoidance of probate

Answer

A revocable living trust allows assets to be transferred to beneficiaries without going through the probate process, which can save time and expenses.

Question 4

Which of the following is NOT typically included in an estate plan?

Accepted Answer

Financial audit

Answer

While a financial audit can be beneficial, it is not typically included in an estate plan, which usually includes documents like wills, trusts, and powers of attorney.

Question 5

What is the role of an executor in estate planning?

Accepted Answer

To distribute the estate’s assets according to the will

Answer

The executor is responsible for ensuring that the assets of the estate are distributed according to the terms of the will.

CFC - Certified Financial Consultant Practice Test

CFC - Certified Financial Consultant Practice Test

Free CFC Estate Planning Questions and Answers