Vocabulary and Concept Questions

What is an estate?

• Only land and a few household items that a person owns within their lifetime

• Everything a person owns, including money, belongings, and property of any type

• Stocks, savings accounts, and investment plans managed by a financial institution

• Only jewelry, cars, and expensive collectibles that have resale value

Estate planning is best described as:

• Creating a plan for possessions and dependents after death, including legal documents

• Paying off student loans and consolidating household expenses over time

• Managing taxes and adjusting deductions every year with professional help

• Investing in property and rental homes to build generational wealth

A will is:

• A bank statement issued monthly with a record of income and transactions

• A legal document explaining how to handle an estate after the person’s death

• A property insurance plan used to cover assets in case of damage or loss

• A trust agreement developed by an accountant for business continuity

If a person dies intestate, that means:

• They left a will that had no witnesses and was therefore incomplete

• They died without a will or any written legal instructions for their property

• They owned no property or assets of measurable financial value at all

• Their will was considered invalid due to improper documentation by the lawyer

Probate refers to:

• Paying estate taxes through the local tax assessor’s office each fiscal year

• The process of proving a will is valid and legally enforceable in court

• Selling property assets and dividing proceeds equally among family members

• Naming an executor and guardian within a court-supervised appointment process

The executor is:

• The person who carries out the instructions in a will and manages estate tasks

• A lawyer who writes the will and prepares related trust documentation

• The person who receives most of the estate’s financial benefit after probate

• The court that manages probate cases and approves inheritance transfers

A guardian is appointed to:

• Handle the estate taxes and maintain accurate records for the court process

• Care for children or dependents if the parents die or become incapacitated

• Approve the will and sign it as a witness during legal certification

• Sell estate property and donate proceeds to local charitable organizations

A holographic will is:

• Typed by an attorney using an approved legal template and notarized

• Handwritten and signed by the person making it without formal witnesses

• Stored by the government in a sealed probate record for future verification

• A will kept in digital form that is password-protected on a private server

A statutory will is:

• A handwritten personal letter that details informal wishes for property

• An oral statement made to relatives but not written down or signed legally

• A standard pre-printed will form that follows the required legal format

• A video recording explaining how possessions will be divided among heirs

A formal will is:

• A will made online through a website without legal verification

• A will created by an attorney and signed by witnesses according to law

• A simple will without witnesses, typed by the estate owner personally

• A family letter stating inheritance preferences in general language