AnswersHSA 26-27 EconomicsInvestment Strategies

Investment Strategies Answers

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1
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What is the purpose of making an estate plan?

A
to contribute to savings for retirement
B
to grow money quickly within a year or less
C
to make money to help pay for immediate expenses
D
to protect property for distribution after death
2
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is unable to inheritdoes not want to servebelieves that a will is invalid

A
is unable to inherit
B
does not want to serve
C
believes that a will is invalid
3

probateexecutorbeneficiary

A
probate
B
executor
C
beneficiary
4

What are the main rules of writing a will? Check all that apply.In most states, you must be eighteen or older.The document must clearly state that it is your will.A notary must be present during the writing of the will.At least three people must witness the signing of the will. A will must be written in sound judgement and mental capacity.An executor must be named to oversee the distribution of the estate.

A
In most states, you must be eighteen or older.
B
The document must clearly state that it is your will.
C
A notary must be present during the writing of the will.
D
At least three people must witness the signing of the will.
E
A will must be written in sound judgement and mental capacity.
F
An executor must be named to oversee the distribution of the estate.
5

What is the role of an executor in estate planning?

A
writing the will and making sure it is signed properly
B
inheriting property and other assets after a person has died
C
providing legal advice on the estate disposition process
D
settling the estate according to what the deceased person wants
6

What are the responsibilities of an executor? Check all that apply.paying any taxes that are due on the estatetaking inventory of the property and belongingsappraising and distributing the deceased person’s assetssettling any debts that are owed by the deceasedinheriting assets named in a will if the first choice cannotacting on someone’s behalf if he or she becomes sick or injured

A
paying any taxes that are due on the estate
B
taking inventory of the property and belongings
C
appraising and distributing the deceased person’s assets
D
settling any debts that are owed by the deceased
E
inheriting assets named in a will if the first choice cannot
F
acting on someone’s behalf if he or she becomes sick or injured
7

Question text not available

Answers:
A declination is filed by a(n) when he or she .:executor
A declination is filed by a(n) when he or she .:does not want to serve
When this occurs, a contingent takes over the responsibilities.:executor
8

notaryexecutorbeneficiary

A
notary
B
executor
C
beneficiary
9

What are the benefits of naming a secondary beneficiary in a will? Check all that apply.It could prevent a will from going into probate.It avoids confusion if the primary beneficiary dies first.It makes it less likely that there will be claims that the will is invalid.It allows for another option if the primary beneficiary cannot inherit.It identifies someone who can assess the value of assets in a will.It ensures that someone can act on a person’s behalf if he or she becomes hurt.

A
It could prevent a will from going into probate.
B
It avoids confusion if the primary beneficiary dies first.
C
It makes it less likely that there will be claims that the will is invalid.
D
It allows for another option if the primary beneficiary cannot inherit.
E
It identifies someone who can assess the value of assets in a will.
F
It ensures that someone can act on a person’s behalf if he or she becomes hurt.
10

Denise and her spouse are planning their estate. They must determine who will carry out their wishes for medical care in the event that they are unable to do so.Which role are they identifying?

A
An executor because this individual implements medical wishes
B
A legal guardian because this person makes sure that medical wishes are protected
C
A beneficiary designation because this assigns an individual to fulfill medical wishes
D
A power of attorney because this gives a person the authority to carry out their medical wishes
11

As part of his estate plan, Emile must determine who will receive his life insurance settlement in the event of his death. Which role is Emile identifying?

A
An executor of the will because life insurance is part of the will
B
A legal guardian because this individual protects Emile’s life insurance
C
A power of attorney because this person knows life insurance laws
D
A beneficiary designation because this specifies the recipient of Emile’s insurance
12

How would an estate plan have helped the Reed family?

A
Estate planning would have eliminated the inheritance tax.
B
Estate planning would have made the probate process shorter.
C
Estate planning would have ensured that all siblings agreed.
D
Estate planning would have protected assets from debt collectors.

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