1. All the following statements concerning the major steps in the estate planning process are correct EXCEPT:

A. It is necessary to gather data, establish objectives, and rank them in the order of their priority.

B. The selected estate planning technique must be implemented.

C. The estate plan must be monitored for changes.

D. The estate planning technique must be selected to meet all of a client=s objectives.

2. Which of the following statements concerning the role of the financial planner in estate planning is (are) correct?

I The planner can help the client to identify his or her financial problems.

II The planner may offer a legal opinion as to the reliability of the estate plan.

III The planner=s participation in the estate planning process may range from

no involvement to total involvement.

A. I only

B. II only

C. II and III only

D. I and III only

3. Which of the following statements concerning a Will are correct?

I A Will can be altered, amended, or completely rewritten at any time before a person=s death.

II A Will cannot be rewritten but can be amended at any time by a codicil.

III A will must be signed by the maker and usually must be witnessed by two or three people.

IV A Will assures a testator of orderly disposition of his or her property, because the Will is effective as soon as it is signed and witnessed.

A. I and II only

B. I and III only

C. II and III only

D. III and IV only

4. Which of the following Wills may be entirely handwritten and need not be witnessed but may be effective for disposing of the testator=s property?

A. A holographic will

B. A living will

C. A nuncupative will

D. A pour-over will

5. Gary Chapelle owns a duplex with his brother in joint tenancy with right of survivorship. Gary would like to pass his interest in the property to his son, Bill, and Gary has provided in his Will that his interest in the duplex will pass to Bill. Which of the following statements concerning the transfer of Gary=s interest to his son, Bill, is correct?

A. Gary=s interest in the duplex will pass to Bill by operation of law, because the survivorship feature is a Will substitute.

B. Gary=s interest in the duplex will pass to his brother and not under the Will.

C. Gary=s interest in the duplex will pass to Bill under Gary=s Will.

D. Gary=s interest in the duplex will pass first to Gary=s brother and then at his death under Gary=s Will to Bill.

6. Which of the following factors need to be monitored to determine if an estate plan needs to be revised?

I Changes in the client's estate planning objectives

II Changes in the client's personal situation

III Changes in the relevant tax or other laws

A. I, II, and III

B. I and II only

C. II and III only

D. I and III only

7. Intestacy is the condition of dying with a will, and testacy is the condition of dying without a will. (True or False)

A. False

B. True

8. Survivorship is a method of receiving property from a decedent through probate, while succession is the method or receiving property by operation of law and outside probate. (True or False)

A. False

B. True

9. Raff created a joint bank account for himself and his friend's son, Dave. There is a gift to Dave when:

A. Raff creates the account.

B. Raff dies.

C. Dave is notified by Raff that the account has been created.

D. Dave draws on the account for his own benefit.

10. Which of the following represent taxable gifts?

I Transfer of monies to a dependent family member that represents support.

II Payment of son's tuition to SMU Law School.

III Payment of $10,000 of medical bills to Dr. Jones for a friend.

A. None of the above is a taxable gift.

B. Only I is a taxable gift.

C. Only II is a taxable gift.

D. Both II and III are taxable gifts.