Incapacity Planning - Sample Questions 1 - 4

1. All of the following are eligibility qualifications for Medicaid benefits EXCEPT:

A) Income below a certain level
Assets below a certain level
Pregnant or support minor children
Disability payments are depleted

2. Your elderly single client (Thomas) comes to you as his financial planner for help. Thomas has no debt, but he realizes that his memory is not as good as it used to be and his daughter (Lisa) is concerned that health issues might cause him to be hospitalized in the near future. Which of the following should you recommend:

I. Life insurance
II. Health care directive
III. Durable power of attorney
IV. Long-term care insurance

A) I and III only
II and IV only
II, III and IV only
D) I and II only

3. The specific power of attorney selection that doesn't go into effect until the individual becomes incapacitated is known as:

A) Springing power
B) Testamentary power
C) Limited power of attorney
D) Special power attorney

4. Which of the following estate planning tools would provide a good source of income for the life of someone that is unable to generate their own income due to disability or mental illness?

I. Growth mutual funds
II. Supplemental needs trust
IV. Fixed annuity

A) I and II only
II and III only
II and IV only
D) I and IV only

Answer Key
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