1. Under the current arrangements, which of the following is Fred able to change without probate court involvement if Mary becomes incapacitated?
A. Whole life policy
B. Residence
C. Value fund
D. Cash and cash equivalents
2. Under the current arrangements, if Mary were to lapse into an irreversible coma, which of the following is the most likely tool Fred would use to deal with medical issues for her?
A. Living will
B. Health care power of attorney
C. Durable power of attorney
D. The courts
3. lf Fred gives Ted $8,000 for Ned's benefit, which of the following is correct?
A. The gift will adversely affect Ned's eligibility for public benefits.
B. Ted's wife Maria will be entitled to 50%, due to state property laws.
C. Ned will need to cosign any check given to Ted.
D. The gift will qualify for the annual exclusion.
4. Fred and Mary are contemplating a family gifting program of some magnitude. Which of the following is the most legitimate rationale for a gifting pattern?
A. Gifts of annual exclusion amounts to the children are inappropriate because the unlimited marital deduction eliminates the federal estate tax.
B. Gifts directly to Ned are suitable, based on need.
C. Gifts to Ted are appropriate to remove the future appreciation for their estates.
D. Gifts to the daughters would serve to enhance their self-motivation.
5. Which of the following would constitute a generation-skipping transfer if it was made today?
A. A direct gift from Fred to Ned's Uniform Transfers to Minors Act account, using the valuefund
B. Creation of a special-needs trust for Ned's benefit
C. Designating Ted as the holder of a limited power of appointment over property exclusively for Ned's benefit
D. Nominating Maria as the holder of a general power of appointment over property for Ned'sbenefit