TRUSTS
ESTATES
HODGE PODGE
HODGE PODGE
PLANNING
ADMINSTRATION
TENANCY AND BENEFICIARIES
100
A legal entity created to hold assets on behalf of another person or entity
What is a Trust
100
Why is it important for financial advisors to build relationships across multiple generations within a family?
A. Because most heirs are legally required to keep their parent's financial advisor.
B. It guarantees that wealth will remain with the same advisor indefinitely.
C. It eliminates the need for estate planning and legacy discussions.
D. Nearly half of investors say they're unlikely to keep their parent's advisor after receiving an inheritance.
What is nearly half of investors say they're unlikely to keep their parent's advisor after receiving an inheritance.
100
Which of the following best describes estate planning?
A. The process of distributing assets and liabilities after a person's death.
B. Preparing for the management and distribution of assets after death, often using legal documents like wills and trusts.
C. The act of paying off all debts and taxes owed by the estate.
D. A legal requirement only for individuals with high net worth.
What is preparing for the management and distribution of assets after death, often using legal documents like wills and trusts.
100
Someone who is legally or ethically bound to act in the best interest of another person.
What is a fiduciary
100
Similar to Tenants in Common this tenancy type is only available in Wisconsin whereby upon the death of a spouse, property passes to the deceased person's estate, not to the surviving spouse.
A. JTWROS
B. Survivorship Marital Property
C. Tenants by Entirety
D. Marital Property
What is Marital Property
200
Person or entity that receives money, property or other benefits when another person dies
What is a beneficiary
200
What is one of the primary reasons for establishing or reevaluating an estate plan?
A. To complicate the distribution process for beneficiaries.
B. To ensure that assets are transferred as the owner intends after their death.
C. To increase the amount of federal and state taxes owed.
D. To ensure that the state becomes the primary beneficiary.
What is to ensure that assets are transferred as the owner intends after their death.
200
This legal document specifies how a person's assets will be distributed after their death and can also name guardians for minor children.
What is a will
200
Yes or No – Can an attorney draft and provide their own type of consent and release of information document?
A. Yes – the form must be specific and list applicable account numbers.
B. No – Edward Jones provides a Consent and Release form (pdf) that attorneys are required to utilize.
What is Yes – the form must be specific and list applicable account numbers.
200
What is a key difference between a per stirpes designation and designating a beneficiary by name?
A. Per stirpes requires updating the designation after every birth or death in the family.
B. Named beneficiary designations automatically include the descendants of the named individual.
C. Per stirpes designates a named individual's descendants, while designating a beneficiary by name only includes the stated individual.
D. Both designations require a Letter of Judicial Determination or Affidavit of Facts signed by a probate agent.
What is Per stirpes designates a named individual's descendants, while designating a beneficiary by name only includes the stated individual.
300
The four main types of trusts
What is Irrevocable, Revocable, Complex, and Simple
300
Which of the following accounts generally receive a full-step adjustment by the home office after the account owner's death?
A. Single accounts and joint accounts held in one of the four types of community property tenancies.
B. Accounts held by corporations and partnerships.
C. Trust accounts and custodial accounts for minors.
D. All accounts, regardless of ownership type.
What is single accounts and joint accounts held in one of the four types of community property tenancies.
300
What is the primary role of the financial advisor in the estate-planning process?
A. Taking on roles such as trustee in the estate plans of their clients.
B. Preparing tax returns and legal documents such as wills or trusts.
C. Acting as a catalyst to initiate the estate-planning process, explaining its importance, and motivating clients to act.
D. Personally soliciting or selling services directly to clients.
What is acting as a catalyst to initiate the estate-planning process, explaining its importance, and motivating clients to act.
300
True or False – When a Power of Attorney (POA) agent signs a form, e-signature is no longer an available option?
A. True – The agent should always ink sign with their capacity (i.e., John Doe, POA for Jane Doe).
B. False – The agent's powers are identical to the client, including e-signature.
What is True – The agent should always ink sign with their capacity (i.e., John Doe, POA for Jane Doe).
300
Why should beneficiary reviews be included as part of the annual review process?
A. They are only necessary when a client has no named beneficiaries.
B. They help ensure beneficiary designations reflect the client's current wishes and to strengthen relationships, which can lead to asset retention and referrals.
C. They eliminate the need for estate planning and legal documentation.
D. They guarantee that all accounts will remain with the branch regardless of client relationships.
What is they help ensure beneficiary designations reflect the client's current wishes and to strengthen relationships, which can lead to asset retention and referrals.
400
This type of trust is created through a will and only takes effect after the grantor's death.
What is a testamentary trust
400
What is the primary purpose of a durable power of attorney for finances in estate planning?
A. To allow a designated third party to manage the financial affairs if the donor of the power becomes incapacitated.
B. To distribute assets amounts to beneficiaries according to the will.
C. To appoint a guardian for minor children.
D. To reduce taxes on the estate after death.
What is to allow a designated third party to manage the financial affairs if the donor of the power becomes incapacitated.
400
Which of the following is a requirement for using Edward Jones' direct payout process for charities and other tax-exempt organizations?
A. The organization must have an active investment account with Edward Jones.
B. The organization must be officially tax-exempt, have no active accounts, and decline to become an Edward Jones client.
C. The organization must receive assets through Division and Assignment.
D. The organization must be receiving assets from an estate or trust.
What is the organization must be officially tax-exempt, have no active accounts, and decline to become an Edward Jones client.
400
Which of the following statements is true regarding authority after the account owner's death?
A. A Power of Attorney (POA) agent remains valid until the estate is fully settled.
B. Trade Authorization continues until all assets are transferred to beneficiaries.
C. Authority for POA and Trade Authorization ceases upon the account owner's death.
D. Both the Power of Attorney (POA) agent and full Trade Authority retains authority to manage the account after death.
What is authority for POA and Trade Authorization ceases upon the account owner's death.
400
With this type of tenancy, each joint owner may hold equal or unequal shares of the property. Upon the death of an owner, the deceased person's portion of the property passes to the deceased person's estate, not to the surviving joint owners.
A. Tenants by Entirety
B. Tenants in Common
C. JTWROS
D. Community Property
What is Tenants in Common
500
This type of trust is designed to provide income to the grantor or beneficiaries for a period, with the remainder going to charity.
A. Grantor trust
B. Simple trust
C. Charitable Remainder trust
D. Special Needs trust
E. Complex trust
What is Charitable Remainder Trust (CRT)
500
The adjustment of an asset's cost basis to its fair market value at the time of the owner's death
(Hint: You have to do this when you walk up stairs)
What is the step up in basis rule
500
Which of the following is an advantage of using a trust in an estate plan?
A. It guarantees that estate taxes will be eliminated for all types of trusts.
B. It ensures that the terms of the trust become public record for transparency.
C. Certain types of trusts can help minimize estate taxes and protect assets from creditors.
D. It prevents the need for professional management of estate assets.
What is certain types of trusts can help minimize estate taxes and protect assets from creditors.
500
Which of the following statements about disclaiming assets is correct?
A. A disclaimer can be revoked if the beneficiary changes their mind within 30 days.
B. A beneficiary can direct how the disclaimed assets should be distributed.
C. Once a properly executed disclaimer is delivered to the financial institution, it cannot be revoked or modified without a court order.
D. Disclaimers are only allowed if the entire account is disclaimed; partial disclaimers are not permitted.
What is once a properly executed disclaimer is delivered to the financial institution, it cannot be revoked or modified without a court order.
500
Why is it important for financial advisors to build relationships across multiple generations within a family?
A. Because most heirs are legally required to keep their parent's financial advisor.
B. It guarantees that wealth will remain with the same advisor indefinitely.
C. It eliminates the need for estate planning and legacy discussions.
D. Nearly half of investors say they're unlikely to keep their parent's advisor after receiving an inheritance.
What is nearly half of investors say they're unlikely to keep their parent's advisor after receiving an inheritance.