NALA Estate Planning and Probate 3

Question 1

A testamentary trust created in a will becomes irrevocable:

Accepted Answer

Upon the testator's death when the trust is funded

Answer

A testamentary trust is created and funded at the testator's death; once the testator dies, the trust becomes irrevocable.

Question 2

Under federal estate tax law, the marital deduction allows a spouse to transfer:

Accepted Answer

An unlimited amount to a surviving U.S. citizen spouse free of estate tax

Answer

The unlimited marital deduction allows a decedent to transfer any amount to a surviving U.S. citizen spouse free of federal estate tax.

Question 3

A 'spendthrift clause' in a trust primarily serves to:

Accepted Answer

Protect the beneficiary's interest from their creditors and from voluntary alienation

Answer

A spendthrift clause restricts a beneficiary's ability to voluntarily assign their interest and bars creditors from reaching trust assets before distribution.

Question 4

Which document formally authorizes a personal representative to act on behalf of a testate estate?

Accepted Answer

Letters testamentary

Answer

Letters testamentary are issued by the probate court to authorize the executor named in a valid will to administer the estate.

Question 5

A 'disclaimer' in estate planning allows a beneficiary to:

Accepted Answer

Refuse to accept an inheritance, causing it to pass as if the disclaimant predeceased

Answer

A qualified disclaimer causes the disclaimed interest to pass as if the disclaimant had predeceased the transferor, which can be a useful tax-planning tool.

(NALA) National Association of Legal Assistants Certification Practice Test

(NALA) National Association of Legal Assistants Certification Practice Test

NALA Estate Planning and Probate 3