CFP

By Investopedia AAA

Estate Planning For Non-Traditional Relationships - Sample Questions 1 - 3

1. Jeff and Jim have lived as a couple for over 12 years. Due to state laws, they have never had the opportunity to have a legal marriage. Jeff is a successful businessman, and wants to make sure that Jim is taken care of for life in the event of his untimely death. Which of the following property transfer options would meet his needs?

I. Tenancy by the entirety
II. Joint tenancy with rights of survivorship
III. Community property
IV. Tenancy in common with each other, no will

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


2. Rebecca and Nancy have been life partners in Texas for over 20 years. Rebecca has no other survivors or family members that she desires to leave with any assets. She would like Nancy to receive her assets in the event of her death instead of the state of Texas. Which of the following recommendations would you make to Rebecca?

(1) Name Nancy as her beneficiary on her employer group life insurance policy.
(2) Make sure Rebecca drafts a will, making Nancy her property recipient.
(3) Change their accounts to tenancy by the entirety.
(4) Designate Nancy as the primary beneficiary on her IRA account.
(5) List Nancy as the recipient of the annuity in the will.

A) 1, 2 and 5 only
B)
2 and 3 only
C)
1, 2 and 4 only
D)
3, 4 and 5 only
E)
All of the above

3. Larry and Shelly have been living together for five years now. They were both previously married and have children from their previous marriages. They vowed never to get married again even though they love each other very much. What documents should you recommend they consider?

I. Simple wills
II. Cohabitation agreements
III. Joint tenancy with rights of survivorship accounts
IV. Prenuptial marriage certificates

A) I and II only
B)
III and IV only
C)
I, II and III
D) All of the above

Answer Key

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