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Retirement & Estate Planning - Final Assessment

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is considered to be the standard retirement age in the United States?

a)

55

b)

60

c)

65

d)

70

2.

What percentage of household budgets do people over the age 50 spend on housing?

a)

25 to 30 percent

b)

30 to 35 percent

c)

35 to 40 percent

d)

40 to 45 percent

3.

What percentage of income do people in their 80s usually spend on health care?

a)

10 percent

b)

15 percent

c)

20 percent

d)

30 percent

4.

Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?

a)

IRA

b)

Saving account

c)

Certificate of Deposit

d)

401(k)

5.

Which of the following is a loan available to homeowners 62 years or older and allows them to convert part of the equity in their homes into cash?

a)

Reverse mortgage

b)

Fixed mortgage

c)

Adjustable mortgage

d)

Conventional mortgage

6.

Which of the following is NOT a benefit of estate planning?

a)

Avoiding confusion when it comes to final wishes

b)

Ensuring children have the legal guardian of choice

c)

Protecting loved ones by ensuring they receive assets from the estate

d)

Maximizing taxes and legal expenses associated with the estate

7.

Which of the following is a legal document in which the drafter outlines what to do with his or her property after death?

a)

Will

b)

Trust

c)

Probate

d)

Durable power of attorney

8.

A drafter with a will is NOT able to do which of the following?

a)

Choose the executor of his estate

b)

Disinherit a spouse

c)

Distribute property to beneficiaries of his or her choosing

d)

Designate a guardian for minor children

9.

Which of the following is usually created by the grantor during his or her lifetime through a transfer of property to a trustee?

a)

Living trust

b)

Testamentary trust

c)

Unfunded trust

d)

Revocable trust

10.

Which of the following is a written document which specifies what types of medical treatment are desired should an individual become incapacitated?

a)

Health-care proxy

b)

Trust

c)

Living will

d)

Power of attorney