Question

Question 6

A trust that, once set up, cannot be changed or underdone by the grantor is called:

Retroactive

Rigid

Permanent

Irrevocable

Living

Question 7

Imagine a rich, single woman named Amelia is flying her private jet on New Year's Eve 2017. Tragically, her plane crashes and she perishes At her death, she has $5 million in net assets. What will be the approximate federal estate tax be on her estate?

$0

$1 million

$2.million

$3 million

$4.0 million

Question 8

It is shocking how many people, even those with significant wealth, never get around to writing a valid will. These people include musician Michael Jackson, artist Pablo Picasso, and:

Aviator Howard Hughes

Boxer Muhammed Ali

Singer Whitney Houston

Politician Richard Nixon

Physicist Carl Sagan

Question 9

What if you want to leave a sizable bequest to the U of U but aren’t sure how much money you will still need to live on until your death and therefore want to be able to receive some money from the trust while you are still living?

Qualified Terminable Interest Property Trust

Testamentary Trust

Irrevocable Charitable Remainder Trust

Revokable Living Trust

Special Needs Trust

Question 10

All of the following are common reasons that people set up trusts EXCEPT:

Ensure that a steady income is provided to a surviving spouse or other beneficiary

Maximize Social Security payments

Avoid the delay and expense of probate

Provide regular income to the grantor while he/she is still alive

Reduce estate taxes

Answer 1

6 ans) irrevocable

reason:irrevocable means which cannot be changed or replaced so answer is irrevocable

7ans) $0

because they will charge the tax if and only f the net estate exceeds $5.49 million,

8ans) Singer Whitney Houston

she is the only one with significant wealth, never get around to writing a valid will.along with them

9ans) Irrevocable Charitable Remainder Trust

it is the trust which gives some money from the trust while you are still living

10ans) maximize social security payments

this is not the reason for people setup trust