Estate Planning IQ Quiz

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.



Question 3

Who decides what happens to your assets if you die without a will?

  1. Your spouse
  2. Your children
  3. A judge, following the laws set by your state legislature
  4. 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.



Question 7 of 10

Estate taxes and inheritance taxes are the same thing.



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.



Answer Key:

  1. C
  2. FALSE
  3. C
  4. E
  5. C
  6. FALSE
  7. FALSE
  8. E
  9. D
  10. FALSE