-Identify what tax rules are affected by determining whether a valid marriage exists.
-Understand the use of common estate planning documents including advance medical directives, HIPAA authorizations, powers of attorney, wills, and various types of revocable and irrevocable trusts.
-Utilize information regarding the three key testamentary trusts to assist clients.
-Determine how joint ownership of property affects taxes
Which statement regarding marital status is not correct?
Marital status is determined at the state level.
XXDomestic partners enjoy the same tax benefits as spouses.
Marital status controls a number of important tax benefits.
Final Exam > Question 2
Which of the following tax breaks are limited to spouses?
Transfers in any amount can be made gift and estate tax free.
COBRA coverage upon the death of one party
Deductibility for support payments when the couple’s relationship is legally ended
XXAll of the above
Final Exam > Question 3
Which statement regarding prenuptial agreements is not correct?
XXThey can be used to require a party to sign a waiver of spousal rights in qualified retirement plans after marriage.
They can decide property rights if there is full disclosure of assets and liabilities by both parties, each of whom is represented by counsel.
(correct)They can be used only by wealthy individuals or in the event of a remarriage.
Final Exam > Question 4
All of the following states use community property principles to divide assets between spouses when a marriage is dissolved except:
California
XXNew York
Wisconsin
Texas
Final Exam > Question 5
Domicile is used to determine:
The state in which a resident income tax return must be filed
(correct)The state that can impose death taxes
XXBoth of the above
Final Exam > Question 6
An irrevocable trust cannot be amended or modified under any circumstances.
True
XXFalse
Final Exam > Question 7
A durable power of attorney can authorize the agent to do each of the following except:
XXSign a will on behalf of a principal
Sign a tax return on behalf of a principal
Sign a waiver of spousal benefits in the employee-spouse’s qualified retirement plan benefits
Final Exam > Question 8
Which statement regarding joint tenancy with right of survivorship property is not correct?
Upon the death of a joint owner, property passes to the surviving owner by “operation of law.”
Joint tenancy with right of survivorship property passes outside of a person’s will and, therefore, is not subject to probate.
XXIf the joint tenants are not husband and wife, upon the death of one joint owner, the surviving joint tenant receives a full step-up in cost basis for income tax purposes.
Final Exam > Question 9
A living trust can do all of the following except:
Provide for lifetime property managment
XXSave estate taxes (beyond any savings that could be realized with a will)
Avoid probate
Final Exam > Question 10
A will can do all of the following except:
XXOverride a beneficiary designation on an IRA
Direct funeral arrangements
Dictate who inherits the decedent’s property