Estate planning as a process includes?
- A . Accumulation of an estate
- B . Conservation of an estate
- C . Distribution of an estate
- D . All of the above
A__________can bring significant gift and estate tax savings.
- A . Granted Retained Annuity Trust
- B . Family Limited Partnership
- C . Intentionally Defective Grantor Trust
- D . Buy and Sell Agreement
Estate Planning is ________ process.
- A . One time
- B . Continuous
- C . Two step
- D . Three step
Full form of IRA is_____________
- A . Individual Revocable Account
- B . Individual Retirement Arrangement
- C . Individual Retirement Attorney
- D . Individual Retirement Aggregation
______________ does not divest the policy holder of his rights in the policy and he retains
disposing power over it.
- A . Assignment
- B . Nomination
- C . Reinsurance
- D . Transferring
What is a ‘CestuquieTrust’?
- A . It is a Trust created for People with Minor children.
- B . It is a Trust created by people in high-liability occupations
- C . It is the person for whose benefit the property is transferred.
- D . It is another name for ‘Deed of Trust’
Which of the following statement(s) about Public Trust is/are correct?
- A . Only (i)
- B . Only (ii)
- C . Both (i) and (ii)
- D . Neither (i) nor (ii)
________ plan involves only Business assets.
- A . Financial
- B . Succession
- C . Estate
- D . Contingency
Estate Tax in India is _______
- A . Nil
- B . 10%
- C . 30%
- D . Tax Rate depends on the estate value
Which of the following is/are benefit(s) of Business Succession Planning?
- A . Both (i) and (ii)
- B . Neither (i) nor (ii)
- C . Only (i)
- D . Only (ii)
You have just started your Estate Planning firm. Your friend who is into Estate Planning since 5 years explains you that an Ideal Estate Planning Prospect is one who is aged ___ or over and are _______________.
- A . 30, Married with Children
- B . 30, Married with no children
- C . 35, Married with Children
- D . 35, Married with no Children
Failure to create an Estate Plan leads to __________ 
- A . Only (i)
- B . Only (ii)
- C . Neither of the (ii)
- D . Both (i) and (ii)
The maximum gratuity payable as per Payment of Gratuity Act is __________.
- A . Rs. 2,50,000
- B . Rs.3,00,000
- C . Rs. 10,00,000
- D . Rs.4,00,000
Which of the following comes under Non-Financial Goals of Estate Planning?
- A . Both (i) and (ii)
- B . Both (ii) and (iii)
- C . Only (ii)
- D . Only (iii)
For which of the following stage of Business Cycle a succession plan is not prepared?
- A . Survival
- B . Growth
- C . Maturity
- D . New Growth or Winding Down
Which of the following statement(s) about ESOP is/are incorrect?
- A . Both (i) and (ii)
- B . Only (i)
- C . Only (ii)
- D . Neither (i) nor (ii)
Estate planning has _________ steps.
- A . Two
- B . Three
- C . Four
- D . Five
There are _________________ Non-Formal Sources of Law.
- A . One
- B . Two
- C . Three
- D . Infinite
As per Employee Provident Fund, a member can withdraw________ of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement or superannuation whichever is later.
- A . 100%
- B . 90%
- C . 75%
- D . 50%
You are an Estate Planner. Your Client asks you that if he wants to give business to his children which method is not appropriate. He further asks you which method can help him control the size of this gift through his will. Your reply would be___________
- A . Buy-Sell Agreement, Bequest
- B . Bequest, Bequest
- C . Estate Sale, Buy-Sell Agreement
- D . Buy-Sell Agreement, Buy-Sell Agreement
Charity tends to be ________ and _________ response.
- A . Short term, Strategic
- B . Long Term, Emotional
- C . Short Term, Emotional
- D . Long Term, Strategic
Incase of Policies issued by the LIC, _______________ days of grace are allowed for monthly premiums.
- A . 7 days
- B . 10 days
- C . 15 days
- D . 20 days
What is the full form of DIN?
- A . Direct Identity Number
- B . Director Identity Number
- C . Director Identification Number
- D . Direct Identification Number
There are ______types of Charitable Trust. Out of these, in ________________ the value of assets are protected against inflation as the payouts vary with the asset value.
- A . Two, Charitable Remainder Unit Trust
- B . Two, Charitable Remainder Annuity Trust
- C . Three, Charitable Remainder Unit Trust
- D . Three, Charitable Remainder Annuity Trust
_________ is the most appropriate method for donors who prefer to make gifts at the end of their life and _________ is the most appropriate method for donors who prefer to give gifts during their lifetime.
- A . Bequest and Outright Gift
- B . Outright Gift and Bequest
- C . Family Foundation and Life Income Gifts
- D . Life Income Gifts and Family Foundation
Public Limited Companies have a minimum paid up capital of ______________ or such higher capital as may be prescribed.
- A . Rs 1,00,000
- B . Rs.3,00,000
- C . Rs.5,00,000
- D . Rs10,00,000
With reference to Business Succession Planning, ____________ protects the value of the business.
- A . Business Valuator
- B . Private Banker
- C . Insurance Professional
- D . Business Banker
There are four general categories of charitable gifts for donors and non-profits to consider. Out of these________ and ____________ require no contracts, trusts, trustees or special income tax returns. On the other hand, for __________ and _____________most donors and non-profits will need significant level of financial sophistication.
- A . Outright Gifts, Bequest, Life Income Gifts, Family Foundations
- B . Outright Gifts, Life Income Gifts, Bequest, Family Foundations
- C . Family Foundation, Bequest, Life Income Gifts, Outright Gifts
- D . Family Foundation, Outright Gifts, Life Income Gifts, Bequest
You are an Estate Planner. A client asks you to explain him the process of Probate. You explain him that Probate is one of the ways to pass ownership of estate property to a decedent’s survivors. The client further asks you to outline the various steps of Probate.
As an estate planner, you would outline the steps of probate as follows (please specify the correct order)
- A . (i)-(ii)-(iii)-(iv)
- B . (ii)-(iii)-(i)-(iv)
- C . (i)-(iii)-(ii)-(iv)
- D . (iii)-(i)-(ii)-(iv)
There are__________ methods of Business valuation.Out of these methods,___________ method applies discount rate to determine the valuation of the business.
- A . Two, Discounted Cash Flow
- B . Three, Discounted Cash Flow
- C . Two, Income method
- D . Three, Income method
Which of the following statement(s) about Ancillary Probate is/are false?
- A . Only (i)
- B . Only (ii)
- C . Both (i) and (ii)
- D . Neither (i) nor (ii)
There are______ key estate planning strategies to transfer wealth efficiently. In a Granted Retained Annuity Trust,annuity payments are determined in relation to IRS benchmark interest rate called ____________ rate.
- A . Four, Section 7520
- B . Six, Section 7520
- C . Four. Section 7620
- D . Six, Section 7620
Which of the following statement(s) about codicil is/are correct?
- A . Only (i)
- B . Both (i) and (iv)
- C . (i),(ii),(iii) and (iv)
- D . (i),(iii) and (iv)
There are ____________ sources of Law.
- A . Two
- B . Three
- C . Four
- D . Infinite
The selling/ planning process has __________ steps.
- A . Four
- B . Five
- C . Seven
- D . Eight
According to__________ of the ‘Registration Act, 1908’ the registration of a Will is not compulsory.
- A . Section 8
- B . Section 48
- C . Section 1
- D . Section 6
Registration of Power of Attorney is __________in India. If Power of Attorney is in respect
of immovable property of value more than __________ it must be registered.
- A . Compulsory, Rs.500
- B . Optional, Rs. 500
- C . Compulsory, Rs. 100
- D . Optional, Rs. 100
Estate Planning Process is eight-step procedure that a manager has to follow.
The Eight Steps are as given below (not in any order)
The correct order is
- A . (i)-(ii)-(iii)-(iv)-(v)-(vi)-(vii)-(viii)
- B . (ii)-(i)-(iii)-(iv)-(vi)-(vii)-(viii)-(v)
- C . (ii)-(i)-(iii)-(iv)-(vi)-(vii)-(v)-(viii)
- D . (ii)-(i)-(iii)-(iv)-(vi)-(v)-(vii)-(viii)
___________ is the submission of a disputed matter to an impartial person.
- A . Mediation
- B . Negotiation
- C . Arbitration
- D . Litigation
____________ is the most basic legal instrument of all Estate Plans.
- A . Power of Attorney
- B . Will
- C . Trust Deed
- D . Any one of above
There are ______ steps in Selling process. The last step in Selling Process is ____________.
- A . Five, Develop and Implement the Plan
- B . Five, Service the Plan
- C . Eight, Implement the Plan
- D . Eight, Service the Plan
Who needs an Estate Plan?
- A . Everyone
- B . HNI
- C . Terminally ill
- D . Elderly
High Net Worth Individuals can dispose of their money in______ ways. From the standpoint of the wealth holder, __________ is the most important of all.
- A . Three, Personal Consumption
- B . Three, Philanthropy
- C . Four, Personal Consumption
- D . Four,Philanthropy
While preparing a Will, the person who is making the Will must declare ________ that he is making the Will in his full senses and free from any kind of pressure. Once the testator completes writing the Will, he must the sign the Will very carefully in presence of at least __________independent witnesses.
- A . At the end, Two
- B . In the Beginning, Two
- C . At the end, One
- D . In the Beginning, One
Wills executed according to __________ of the _____________ are called Unprivileged Wills.
- A . Section 8, Hindu Succession Act 1956
- B . Section 63, Indian Succession Act 1925
- C . Section 8, Indian Succession Act 1925
- D . Section 63, Hindu Succession Act 1956
Which of the following statement(s) about Estate Planning is/are correct?
- A . (i),(ii),(iii) and (iv)
- B . Only (iii)
- C . (iii) and (iv)
- D . Only (ii)
In case of Amputation through shoulder joint, what is the Percentage of Compensation given (as per Workmen’s Compensation Act)?
- A . 50%
- B . 75%
- C . 90%
- D . 100%
There are __________types of Insurance policies which are used in Estate Planning.
- A . Two
- B . Three
- C . Four
- D . No limit on the types of Insurance Policies
Section 45 of the Insurance Act,1938 places a check on the power of insurer to avoid life policy on the ground of innocent misrepresentation after the expiry of ____________ of the policy term
- A . Six month
- B . One year
- C . Two years
- D . Five years
The goals of Estate Planning can be broadly divided into_______ categories.
- A . Two
- B . Three
- C . Four
- D . Five
You are an Estate Planner. Mr. Arun Mittal, a HNI client asks you to explain him the number of ways to dispose of his wealth. You explain to him about the three ways of disposing wealth. He further asks you to give ranking to the methods-from most preferred to least preferred. You tell Mr. Arun that the correct order is _________________.
- A . Consumption, Inheritance, Philanthropy
- B . Inheritance, Consumption, Philanthropy
- C . Philanthropy, Inheritance, Consumption
- D . None as he can dispose his wealth in any order.
In context to Workmen’s Compensation Act, any claim for the compensation should be made within _________ of the occurrence of the accident or from the date of death.
- A . 6 months
- B . 10 months
- C . 1 year
- D . 2 years
More than_______ in wealth classifies the person as “Ultra HNI”
- A . $1 million
- B . $10 million
- C . $50 million
- D . $100 million
According to ___________ of the Registration Act, 1908 the registration of a Will is not compulsory. A suit can only be filed within ___________days after the refusal of registration by the Registrar. An oral will made by a soldier above 18 years of age will be valid for __________ while a written will be valid for ___________.
- A . Section 18, 30, One month, Forever
- B . Section 18,15, One Month, Three Months
- C . Section 8, 15, One Month, Forever
- D . Section 8, 30, One Month, Forever
A Business plan has_________ phases.
- A . Two
- B . Three
- C . Four
- D . Five
Which of the following statement is true?
- A . Only (i)
- B . Only (ii)
- C . Both (i) and (ii)
- D . Neither (i) nor (ii)
Which of the following statement(s) about ‘Whole Life Insurance’ is/are correct?
- A . Both (i) and (ii)
- B . Only(i)
- C . Only (ii)
- D . Neither (i) nor (ii)
Private Companies have a minimum paid up capital of _______________ or such higher capital as may be prescribed.
- A . Rs 1,00,000
- B . Rs.3,00,000
- C . Rs.5,00,000
- D . Rs10,00,000
As per Payment of Gratuity Act, Gratuity shall be payable to an employee after he has rendered continuous service for not less than __________
- A . 2 years
- B . 5 years
- C . 10 years
- D . 15 years
Which of the following statement(s) about Estate Planning is/are true?
- A . Neither (i) nor (ii)
- B . Both (i) and (ii)
- C . Only(i)
- D . Only (ii)
There are generally________ types of Private Foundations. Out of these, in ____________ arrangement, the donor has no direct participation in any charitable work.
- A . Two, Company-Sponsored Foundation
- B . Three, Non-Operating Foundation
- C . Two, Non-Operating Foundation
- D . Three, Company-Sponsored Foundation
You are an estate planner. A couple has jointly owned company. They have three children out of which one is disabled. As an estate planner, which Estate planning would you suggest to the couple, so as to enable them to transfer wealth efficiently to their children.
- A . Life Insurance Policy
- B . Buy Sell Agreement
- C . Family Limited Partnership
- D . Grantor Retained Annuity Trust
Which of the following events does not require a Estate Planner to revise his plan?
- A . Divorce
- B . Donation of Asset
- C . Birth of grandchildren
- D . None of the above
As per the ESI Act, the monthly wage limit for coverage is _____________ per month.
- A . Rs. 10,000
- B . Rs. 15,000
- C . Rs. 20,000
- D . Rs. 25,000
Which of the following is essential for contract?
- A . Free Consent
- B . Witness
- C . Signatory
- D . Consideration
___________ is appropriate for donors who want to see their charitable dollars at work during their lifetimes.
- A . Bequest
- B . Family Foundation
- C . Outright gift
- D . Charitable Remainder Trust
Mr. Raj, the intestate, leaves no brother or sister but leaves his mother and one child of a deceased sister, Mary and two children of a deceased brother, George.
How will the Estate be distributed?
- A . Raj’s Mother will be receive all the Property.
- B . Raj’s Mother will take 50% of the share while remaining 50% will be divided equally between the three children.
- C . Raj’s mother will take one-third, Mary’s child will take one-third and the children of George will divide the remaining one-third equally between them.
- D . Raj’s mother will take 50% of the share and remaining will be divided between George’s children
_________________ can be used as an alternative to the outright gift and ___________ can be used as an alternative to a traditional short term pledge.
- A . Virtual Endowment Model, Step-Up gift
- B . Virtual Endowment Model, Philanthropic Equity Builder Model
- C . Virtual Endowment Model, Family Foundation
- D . Step-Up Gift, Family Foundation
What does ‘T’ in ‘SWOT’ stands for?
- A . Trends
- B . Time
- C . Threats
- D . Trust
As per the Payment of Gratuity Act, the employer shall pay the amount of gratuity within _________.
- A . 30 days
- B . 45 days
- C . 180 days
- D . 270 days
A High Net Worth Individual (HNI) should hold at least _______ in liquid financial assets.
- A . $1 million
- B . $5 million
- C . $10 million
- D . $50 million
There are_________steps to implement Philanthropy Planning and the first step is__________.
- A . Three, Gift Design
- B . Three, Discovery
- C . Four, Gift Design
- D . Four, Discovery
A trust involves_______ parties. ___________ is the person who establishes the trust.
- A . Two, Settlor
- B . Three, Settlor
- C . Two, Executor
- D . Three, Executor
Estate tax is also called ________
- A . Succession Tax
- B . Voluntary Tax
- C . Involuntary Tax
- D . Transfer Tax
_____________ allows you to contribute cash but you will not receive tax deduction at the
time of contribution.
- A . Traditional IRA
- B . Roth IRA
- C . SEP-IRA
- D . Simple IRA
You are an Estate Planner.
A client gives you the following information (given below in Table).
You are required to make Quick Estimate of Estate’s liquidity. All figures are in Rupees. The estimate in this case is ______________
- A . 5,68,000
- B . (5,68,000)
- C . (1,30,000)
- D . 1,30,000
What is the ultimate goal of Estate Planning?
- A . To reduce estate taxes to minimum
- B . To fulfill the estate owner’s wishes as closely as possible
- C . Increase the value of client’s assets
- D . Conserve the existing assets of client
__________ is an influential person who knows you favorably and agrees to introduce or
recommend you to others.
- A . Centre of Influence
- B . Attorney
- C . Commercial Bank Officer
- D . Property Agent
Which of the following statement(s) about Bequest is/are correct?
- A . All except (iv)
- B . All except (iii)
- C . All (i),(ii),(iii) and (iv)
- D . None of (i),(ii),(iii) and (iv)
A person is deemed to have attained majority on completion of __________________ in case where a guardian of a minor’s property is appointed under the Guardian and Wards Act,1890.
- A . 15 years
- B . 16 years
- C . 18 years
- D . 21 years