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bm Personal Finance Ch. 15

Total questions: 26

Worksheet time: 6mins

Name
Class
Date
1.

a legal document that modifies parts of a will and reaffirms the rest

a)

heir

b)

codicil

c)

estate

d)

trust

2.

The person who will inherit property

a)

codicil

b)

estate

c)

heir

d)

trust

3.

a federal tax on property transferred from an estate to its heirs

a)

inheritance tax

b)

power of attorney

c)

reverse mortgage

d)

estate tax

4.

a loan against the equity in the borrower's home in which the borrower receives monthly payments

a)

trust

b)

reverse mortgage

c)

estate

d)

equity

5.

A legal document authorizing someone to act on your behalf

a)

power of attorney

b)

heir

c)

trust

d)

estate

6.

a state tax on an heir who inherits property from an estate

a)

heir

b)

inheritance tax

c)

estate tax

d)

trust

7.

a legal document in which an individual gives someone else control of the property for ultimate distribution to another person

a)

trust

b)

heir

c)

estate

d)

codicil

8.

A will is also called a ________________ .

a)

testator

b)

testament

c)

holographic document

d)

simple document

9.

Put words in correct order.

_________________ is what a real estate appraiser believes your property is worth compared to similar properties that have recently sold in your area. __________________ is what the country or taxing authority has determined your property is worth for tax purposes

a)

assessed value, the appraised value

b)

current market value, the appraised value

c)

appraised value, the assessed value

d)

assessed value, current market value

10.

This equation is the property's value minus the mortgage balance.

a)

estate

b)

equality

c)

heir

d)

equity

11.

_________________ is the amount for which you could sell your house for now.

a)

current market value

b)

assessed value

c)

appraised value

d)

equity

12.

_______________ is government sponsored health insurance for the elderly.

a)

Medicare

b)

Medicaid

13.

This is what a person owns, fewer debts owned, at the time of the person's death.

a)

estate

b)

will

c)

trust

d)

intervivos

14.

This is the person who MAKES the will.

a)

decedent

b)

executor

c)

testator

d)

trustor

15.

This is the person who receives the ultimate distribution to another person.

a)

beneficiary

b)

beneficiary

c)

intestate

d)

decedent

16.

Put words in correct order.

__________________ is the type of IRA where contributions are taxed, but earnings are not. _______________ is the type of IRA that you can deduct your contribution each year from your taxable income.

a)

Traditional IRA, Roth IRA

b)

Roth IRA, Traditional IRA

c)

Roth IRA, Education IRA

d)

Education IRA, Roth IRA

17.

Tax-Deferred retirement savings plan available to self-employed individuals and their employees.

a)

Simplified Employee Pension (SEP)

b)

annuity

c)

tax-sheltered annuities

d)

Keogh plan

18.

A company-sponsored retirement plan in which retired employees receive a set of a monthly amount based on wages earned and the number of years of service.

a)

defined contribution plan

b)

defined benefit plan

c)

Simplified Employee Pension (SEP)

d)

tax-sheltered annuities

e)

annuity

19.

This is a defined contribution plan for employees of companies that operate for profit.

a)

401K

b)

403B

c)

401B

d)

403K

20.

The 403b plan includes all of the following except.

a)

schools

b)

non-profit organizations

c)

government

d)

retail store

21.

If you and your spouse own property as joint tenants with right of survivorship the ownership is split ________ for estate tax purposes.

a)

60/40 the eldest get most

b)

70/30 the eldest get most

c)

50/50 even split

d)

70/30 the wife get majority because of the children

22.

A limited power of attorney is good for ________ days.

a)

30 days

b)

60 days

c)

90 days

d)

120 days

23.

Intervivos is also called _________ .

a)

living trust

b)

trustee

c)

willing trust

d)

codicil

24.

A court supervised process to paying your debts and distributing your property to your heirs upon your death.

a)

civil court

b)

family court

c)

probate court

25.

A holographic will is legally valid in how many states?

a)

26

b)

10

c)

15

d)

20

26.

A ________ allows you to pass title to real property to a loved one but retain your right to live on the premise.

a)

life estate

b)

gift estate

c)

relative estate