Please answer the multiple questions attached. 19 question all multiple choice and True False.

1.Margaret wants to set up a charitable trust to minimize her estate taxes. Which should she do first? Option A: Implement her trust plan. Option B: Decide which assets she wants to gift to the trust. Option C: Consult an experienced estate-planning lawyer. A B C D Option D: Figure out if she is exempt from federal estate taxes already. 2.Which is NOT a purpose for using a trust in estate planning? A Option A: to ensure that the estate achieves certain purposes after death Option B: to remove property from taxable estates Option C: to bypass the IRS Option D: to bypass probate B C D 3.A living trust takes effect Option A: upon birth of a beneficiary. Option B: upon creation of an estate. Option C: now. Option D: A B C D upon death. 4.Which does NOT provide trustee services? Option A: insurance brokers B Option B: financial institutions C Option C: law firms D Option D: Banks 5.How many states had an estate or inheritance tax in 2016? Option A: 34 Option B: 50 Option C: 18 A B C D Option D: 6. Which of the following are included in your gross estate? (Select the 3 that apply.) Option A : Investment accounts A B Option B : Life insurance held in an irrevocable trust Option C : Checking accounts Option D : Savings accounts C D 7. Who can inherit an unlimited estate without being subject to federal estate tax? A Option A: parents B Option B: spouse C Option C: charity D Option D: Children 8. In 2016, you and your spouse may give up to ______ per person to as many people as you like tax-free. A Option A: $14,000 B Option B: $140,000 C Option C: $10,000 D Option D: $40,000 9. For wealthy people, gifts made during their lifetime can be used to minimize their taxable estates in order to reduce potential estate taxes. Option A: A True Option B: B False 10. The federal estate tax rate Option A: has increased in the past 20 years. A B Option B: is assessed only on the amount of an estate that exceeds the exemption amount. Option C: is a flat tax of 40 percent on the gross estate. C D Option D: is a progressive tax with the highest marginal rate at 55 percent. 11.The type of ownership in which you maintain the right to transfer your ownership of an asset independent of the person with whom you share the asset with, is known as Option A: community tenancy. Option B: beneficiary tenancy. Option C: joint tenancy with right of survivorship. Option D: tenancy in common A B C D 12. One of the disadvantages of ________ with right of survivorship is that you have no say over what happens to the property after you die. A Option A: joint tenancy B Option B: community property C Option C: sole tenancy D Option D: tenancy in common. 13. When two people own property together, one way for them to automatically avoid probate is to Option A: witness each other's wills. A B Option B: own the property in joint tenancy with right of survivorship. Option C: name each other as executor. C Option D: serve as each other's guardians. 14. A person's estate is Option A: his or her net worth during life. Option B: his or her net worth at death. Option C: the value of the assets he or she owned during life. D A B C D Option D: the value of the assets he or she owned at death. 15. Charles is 23 years old. He recently graduated from college and is making ends meet by working two retail jobs. His only asset is his car. Robin is 35 years old and is working her way up the career ladder at the financial firm where she works. Robin has been married for almost 10 years and has three children. Which of these two people would benefit most from an estate plan, and why? A Option A: Charles, because he has more time to develop an estate plan and shield any future income from estate taxes. B Option B: Robin, because she has a more complex estate and beneficiaries, as well as fewer years until she reaches her estimated life. C Option C: Charles and Robin have an equal need for an estate plan. D Option D: Neither Robin nor Charles, because they are both relatively young and have not had the chance to develop complex estates that would require plans. 16. Why is it recommended that you make a will and/or an estate plan when you are young? Option A: Your estate is complicated. Option B: You can accumulate more wealth. A B Option C: Your death is unpredictable. C D Option D: You are not likely to have dependents as yet. 17. A living will is designed to state a person's medical preferences if that person is unable to make medical decisions due to illness or disability. Option A: True Option B: B False 18. Births, deaths and even change of the state of residence will often cause revision in estate plans. A Option A: True Option B: B False 19. Which is NOT a cost that might unnecessarily erode your estate if you die without an estate plan? A Option A: state inheritance taxes Option B: federal income taxes Option C: probate costs Option D: federal estate taxes A B C D