Here are the answers to the quiz...

1. An estate planning vehicle which can help my heirs avoid probate and also reduce or eliminate estate taxes is...
   A. living will
   B. living trust is the correct answer
   

   A living trust transfers assets to heirs just as a will does, but assets contained in the trust do not have to go through the costly and time-consuming probate process. Other provisions eliminate or reduce estate taxes during the transfer. (A living will contains medical directives to healthcare providers in case of terminal illness/injury.)

   
   C. pour-over will
   D. will
    
2. The current per-person estate tax exemption in the United States is...
   A. $650,000
   B. $675,000
   C. $750,000
   D. $1,000,000 is the correct answer
    
3. The legal document which gives someone the power to act on my behalf in financial matters if I become incapacitated is...
   A. Healthcare Power of Attorney
   B. Power of Attorney
   C. Durable Power of Attorney is the correct answer
   

   A durable power of attorney remains in effect for its stated purposes even when the designator becomes unable to handle his/her own affairs. A regular power of attorney, in contrast, is immediately revoked in such circumstances. (A contingent power of attorney is used for specific duties when specified events trigger its usage. A healthcare power of attorney grants the power only to make decisions regarding healthcare of the grantor.)

   
   D. Contingent Power of Attorney
    
4. A key advantage of a living trust with Lutheran Foundation of the Southwest over a will is that a trust...
   A. Prevents court control of assets at your physical or mental incapacity
   B. Minimizes emotional stress on your family
   C. Avoids the time and expense of probate when you die
   D. Lets you keep assets in trust until beneficiaries reach age(s) when you want them to receive their inheritances
   E. All of the above is the correct answer
    

Click TRY AGAIN to start over and test your memory.

Your LFSW consultant can answer any further questions you might have and develop specific illustrations for your personal estate planning needs and goals.

For a no-cost, no-obligation consultation in the privacy of your home, please complete the free offers page on this website or call 1-800-424-0447.