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Thanks for taking the Estate Planning Quiz!
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4 or more wrong - call or email us today!
Here are the quiz answers:
1. Mr. and Mrs. Smith would like to leave everything to each other so they don’t need a will.
False. The disposition of your property is only one function of a will. A will allows you to direct the disposition of your personal effects, select an executor, choose the source for payment of taxes and, in some cases, save or eliminate taxes at the death of your spouse.
2. Mrs. Williams has three children. She has a close relationship with two of the three children. She can divide her estate equally between the two children she likes and leave nothing to the third child.
True. In Pennsylvania, you can cut a child out of your will. You cannot, however, cut out a spouse entirely.
3. Mrs. Hunt is widowed and has one daughter. She does not need a will because she put her house and all her accounts in joint name with her daughter.
False. Mrs. Hunt still needs a will to name an executor, make directions for the payment of taxes and provide for the orderly disposition of her estate.
4. Mr. and Mrs. Jackson do not need wills drawn because Mr. Jackson had a will drawn when he was in the Army during the Korean War.
False. Every Pennsylvania resident above the age of 18 has the right to direct the disposition of their property at their death. Mr. Jackson’s will is of no effect on the property that Mrs. Jackson owns or the one-half of property that Mrs. Jackson owns with her husband. In addition, Mr. Jackson needs a current will which reflects current laws. Ideally, estate plans should be reviewed every five years to account for life changes.
5. Mrs. Washington is pleased that she has a living trust because when she dies, no one will see her personal business as they would if she had a will.
False. In Pennsylvania, living trusts, also called revocable trusts, must be filed with the county Register of Wills, for property to be transferred under the terms of the trust.
6. Mrs. Jordan is also pleased that she has a living trust; because she believes that having the trust means that no tax will be due when she dies.
False. In Pennsylvania, Mrs. Jordan’s property in a living trust is taxed as if it is owned outright because Mrs. Jordan has the right to change the terms of the trust at any time.
7. Mr. Peabody believes that he doesn’t need a will because his only asset is his pension plan, which he left to his son.
True. Although it is true that Mr. Peabody doesn’t need a will, because the beneficiary designation governs the disposition of the pension, Mr. Peabody could control other aspects of his estate with a will, such as who serves as his executor, who receives his personal effects and how and where he would like to be buried.
8. Mr. and Mrs. Sloan signed a prenuptial agreement when they married. The agreement has provisions for the disposition of their property when they die. Therefore, they don’t need wills.
False. The prenuptial agreement that the couple signed when they got married is not a will substitute. It governs only the property rights between themselves. Mr. and Mrs. Sloan each needs his own will to be fully protected.
9. Mr. Miller thinks that he doesn’t need a will because he owns nothing and has no living relatives.
True.
10. Mrs. Dunbar lives half the time in Pennsylvania and half the time in a foreign country, so she needs two wills, one for each country.
False. If Mrs. Dunbar is a resident of Pennsylvania, her Pennsylvania will can effectively dispose of her property in foreign countries. Mrs. Dunbar should, however, plan her estate more carefully in light of her more complicated life.
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