Lesson Four Quiz:

Click on your response for the correct answer.

1. Which of the following is NOT a benefit of revocable living trusts?

A. avoidance of probate Please try again.

B. reduction of income taxes Congratulations, correct answer.

C. financial management during disability Please try again.

2. A trust that provides lifetime security to your spouse and passes to beneficiaries is a:

A. revocable living trust Please try again.

B. Crummey trust Please try again.

C. QTIP trust Congratulations, correct answer.

3. Probate laws exist for the purpose of:

A. assuring that an estate’s debts and taxes are paid Please try again.

B. safeguarding estates and implementing wills Please try again.

C. both A and B Congratulations, correct answer.

4. Charitable remainder trusts allow individuals to:

A. make substantial gifts, keep lifetime income and receive tax deductions Congratulations, correct answer.

B. eliminate all future income taxes Please try again.

C. revoke their gifts if they so choose Please try again.

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