FINANCE- Which one of the following statements is true about estate planning
1.Which one of the following statements is true about estate planning?a. Estate planning is only for the rich.b. It is always easy to plan for your family’s financial security in the event of your death.c. Most people give meticulous attention to estate planning.d. Many people do little to financially prepare for death.2.Nancy Moore is planning for her retirement. She guesses that by the time she retires, her mortgage will be paid off on her home. She expects she will pay $600 a month on food and that her medical expenses will be $400 a month. She also estimates that she will spend $400 a month on things that she enjoys like traveling, going to concerts, reading, and other similar activities. What step in the retirement planning process is Nancy completing?a. Analyzing her current assets and liabilitiesb. Estimating her spending needsc. Evaluating her planned retirement incomed. Developing a balanced budget based on her retirement income3.Which type of will allows you to pass to your spouse any amount that satisfies your family objective?a. Simpleb. Traditional marital sharec. Exemption trustd. Stated dollar amount4.Some retirement planning experts suggest that you start retirement planning while you are:a. in school.b. married.c. divorced.d. middle-aged.5.Which type of housing is designed to allow people to stay in their homes as they grow older?a. Rooming houseb. Universal designc. Rental unitd. Two-story house6.Under what type of will is half of your estate taxed at your death and half at your spouse’s death?a. Simpleb. Exemption trustc. Traditional marital shared. Stated dollar amount7.Estate planning has two parts. The first part consists of:a. building your estate through savings, investments, and insurance.b. transferring your estate in the manner you have specified.c. deciding who is going to get what.d. evaluating your assets and liabilities.8.Which retirement plan is specifically designed for self-employed individuals and their employees?a. Roth IRAb. Traditional IRAc. Keogh pland. Defined-benefit plan9.You can determine your net worth by:a. subtracting your assets from your liabilities.b. subtracting the value of your home from the mortgage balance.c. adding your liabilities and assets.d. subtracting your liabilities from your assets.10.Gerald Wilkins owns a home worth $250,000, a car worth $15,000, various investments worth $600,000, and other personal assets worth $25,000. What are these things to Gerald?a. Estateb. Willc. Trustd. Liabilities11.The people who are in the best position to save are:a. teenagers.b. middle-aged.c. elderly.d. people in their 30s.12.Which one of the following is a true statement about retirement planning?a. I should wait until at least age 40 to start saving for retirement.b. My pension benefits will increase to keep pace with inflation.c. I should update my retirement plan periodically.d. My employer’s health insurance plan will cover my medical expenses.13.Which one of the following is the most widely used source of retirement income?a. IRAsb. Keogh plansc. Social Securityd. Union pension plans14.A will is:a. the legal declaration of a person’s mind as to the disposition of his or her property after his or her death.b. a synonym for a prenuptial agreement.c. a legal document authorizing someone to act on your behalf.d. a synonym for a letter of last instruction.15.Gerry Legere has died without writing a will. What is the legal term for this?a. Probateb. Intestatec. Testamentaryd. Codicil16.Your first step in retirement planning is to:a. estimate you spending needs.b. analyze your current assets and liabilities.c. adjust your spending needs for inflation.d. evaluate your planned retirement income.17.You can get a reverse mortgage annuity if:a. you are willing to sell your house immediately.b. you buy a new home and pay only a minimal down payment.c. you owe more in monthly mortgage interest than the annuity amount.d. your mortgage is largely or completely paid off.18.Maryanne Strothman wants to leave some words of encouragement and spiritual advice to her children to encourage their faith in the event that something happens to her. What type of document would be best for her to prepare?a. Ethical willb. Durable power of attorneyc. Letter of last instructiond. Codicil19.Which of the following is an important document needed for estate planning?a. Your driver’s licenseb. Your transcript from collegec. Your birth certificated. Your birthday cards20.Which one of the following statements is correct regarding wills?a. Only married people need a will.b. Only married people with dependents need a will.c. Only the rich with considerable estates need a will.d. Every adult should have a will.