Estate Planning IQ Quiz
What Do You Know about Wills and Trusts? Test Your Estate-Planning Knowledge
Question 1
About what percentage of people ages 18 and up currently don’t have a will? (Hint: It’s higher than you might think.)
A. 24%
B. 44%
C. 64%
D. 84%
Question 2
If you’re not married, don’t have children and don’t own property, then you don’t need to worry about estate planning.
True
False
Question 3
Who decides what happens to your assets if you die without a will?
- Your spouse
- Your children
- A judge, following the laws set by your state legislature
- Your lawyer
Question 4
You need a will to make sure the money in which of these accounts goes to the heirs of your choice?
A. Your 401(k)
B. Your IRA
C. Your savings and checking accounts
D. Your life insurance policy and annuities
E. None of the above
Question 5
Federal estate taxes, which can claim as much as 40% of taxable assets, are an issue for individuals with estates worth how much in 2019? (Hint: It’s more than you might think.)
A. $1,000,000
B. $3.5 million
C. $5.49 million
D. $11.4 million
Question 6 of 10
If you die with a will, your heirs can skip probate and your personal financial life will remain private.
True
False
Question 7 of 10
Estate taxes and inheritance taxes are the same thing.
True
False
Question 8 of 10
Which of the following documents do you need a lawyer’s help to draft?
A. A last will and testament
B. A revocable living trust
C. Advance directives
D. Both A and B, but not C
E. None of the above
Question 9 of 10
People with assets in which of the following forms should probably consider a revocable living trust?
A. Pensions
B. Government bonds
C. Life insurance death benefits
D. A vacation home in another state
Question 10 of 10
You need to update your will or trust frequently, at least every one to two years.
True
False
Answer Key:
- C
- FALSE
- C
- E
- C
- FALSE
- FALSE
- E
- D
- FALSE