CTFA Prep questions with answers
exam Solved 100% Correct.
Jean and John Simmons are married and own their own home as tenants
by entirety. When John dies the home is valued at $350,000. How much
will be counted in his gross taxable estate?
A. None, as it passes directly to his spouse,
Jean. B. $175,000 - or one-half of the value
C. $225,000 - or the full amount minus the $125,000 one-time exclusion for
capital gains on a person residence.
D. $350,000 - the full amount is includable. Answer- B. $175,000 - or onehalf the value
Once a will is properly drafted it is valid:
A. in all states.
B. for the state for which it was
prepared. C. in all states for a
period of 5 years.
D. for the state for which it was prepared for a period of 5 years. AnswerB. for the state for which it was prepared.
In managing personal trust assets, a trustee should seek which of the
following?
A. maximum income
B. preservation of capital
C. reasonable income and preservation of capital, including purchasing
power
D. maximum income and reasonable preservation of capital Answer- C.
reasonable income and preservation of capital including purchasing
power
A decedent's estate being settled by your bank contains an antique
automobile. One of the directors of your bank indicates that he would like
to buy it. You should do which of the following?
A. Sell it to him at a bargain price and befriend him.
B. Have a qualified appraisal done and offer it to him at
that value. C. Explain that he may not purchase the car
from the estate.
D. Arrange for a public auction at which he may buy it if he is the
highest bidder. Answer- C. Explain that he may not purchase the car
from the estate.
If you hold a rental property in an irrevocable trust, when is it all right to
rent to an employee of your trust department?