1. Donna M. Kesot, CPCU, Copyright 2012 . All Rights Reserved, 4-25-2012

2. Estates Trusts Trusts 101 Ownership100100100100 200 200200200300300300300 400 400400400 3. Property handled and distributed by thepersonal representative upon a personsdeath 4. What is a probate estate?Home 5. Net estate of Ones Heirs 6. What are estate assets that will go to heirsafter payments for cost of dying?Cost of dying: debts, claims, administrativeexpenses, and taxes Home 7. Inheritance taxes levied on right toreceive property, on right to give awayproperty or both 8. What is State Death Tax Value?(All states except NV) Home 9. Six Steps in Estate Settlement 10. What are:1. Assemble estate property (probate property)2. Safekeeping, safeguarding, and insuring estate property during estate administration3. Managing estate property temporarily4. Paying estate debts, expenses, & taxes5. Accounting for the estate administration6. Making distribution of net estate to proper heirsHome 11. Uniform Statuatory Rule AgainstPerpetuities (USRAP) 12. What is the law that limits trusts to no longerthan 90 years(AK, AZ, CO, DE, ID, IL, MD, SD, & WI allowdynasty trusts)Home 13. Uniform Prudent Investor Act 14. What is the rule that the trustee should makeinvestments exercising reasonable care, skill,and caution, given the circumstances andobjectives of the trust and considering theportfolio as a wholeDaily Double 400 pointsHome 15. Much like a mutual fund, this type of trustcomingles 16. What is a common trust fund? Home 17. Total Return Trust 18. What is a trust where part of thepayment to a beneficiary may includethe principalHome 19. A fiduciary arrangement set up bysomeone called the ______________whereby a person, corporation, ororganization, called the ___________ has___________ _____________ to propertyplaced in the trust. 20. What are: Grantor, creator, settlor of the trust Trustee Legal Title Home 21. Provide a vehicle to hold family wealthas it passes from one generation to thenext To provide a way for giving/leavingproperty to a minor 22. What are two of many reasonsfor creating a trust?What are other reasons? Home 23. Trust of beneficiaries with disabilities whoneed to maintain eligibility for variousgovernment benefits. 24. What is a special needs trustHome 25. Trusts that protect grantors from their ownfuture creditors 26. What are Asset Protection Trusts (APTs) or onshoretrusts, and Offshore Asset Protection Trusts (OAPTs)?Home 27. Ownership Forms, name 4 28. What are Outright ownership Joint Ownership/Concurrent Ownership Joint Tenancy with Right of Survivorship Tenancy by the Entirety Tenancy in Common Community Property (AZ, CA, ID, LA, NV, NM, TX, WA)? Uniform Martial Property Act UMPA, (WI) Common Law Legal & Equitable Interests (e.g. Trusts, POAs)Home 29. Kinds of Trusts (3) 30. What are1. Testamentary(wills)2. Living (inter vivos) Revocable or Irrevocable3. Insurance (Living) Trust (of Life Insurance) Home 31. Four Problems with Intestate Distribution 32. What are:1. Not chosen by estate owner (dictated by law)2. Beneficiaries receive inheritances outright without regard to individual capabilities to manage property3. Executor not selected by estate owner4. Estate taxes may be unnecessarily increased Daily Double = 600 pointsHome What does SEC stand for? 33. Prenup 34. What is a prenuptial agreement? Uniform Premarital Agreement Act (UPAA) Retirement Equity Act (REA) Uniform Probate Code (UPC)-spouse mayelect to take part (1/31/2) of deceasedspouses augmented estate Augmented = probated and certain Home non-probated assets (life insurance, annuities, retirement benefits)