Week Three Quiz
Week Three:
1. Why should you never designate minor children as your primary beneficiary, but instead put assets intended for them into a trust?
a. Because they cannot be trusted to manage their own money
b. Because their guardians will likely mismanage the funds
c. Because minors cannot legally inherit money
d. Because the money will be held in probate court for over a year
2. Having a durable power of attorney for health care (PoA) in place is a good idea in the event that
a. your physician may recommend medical treatments that you are not able to afford
b. your family is opposed to some of your wishes or is divided about them
c. you only want certain doctors to treat you in a medical emergency
d. you want the PoA to remain in effect even if you become incapacitated
3. What is the main difference between a will and a living will?
a. A will outlines how your belongings are passed on to others, and a living will outlines how the people mentioned in your will can use those belongings.
b. A living will explains who will make decisions for you in medical situations, and a will explains who should receive your assets.
c. A will lists all your personal belongings, and a living will lists all your medical contacts.
d. A living will outlines what medical treatments you want, and a will outlines how your belongings are passed on to others.
4. Funding a revocable living trust involves which of the following:
a. Writing a will to handle your 401k and other non-property assets
b. Assigning title of your assets to the trust
c. Adding an incapacity clause
d. None of the above
5. When purchasing homeowner's insurance, you should look for a policy that
a. will cover the actual cash value of your house and possessions
b. will cover two times the actual cash value of your house and possessions
c. will cover the replacement value of your house and possessions
d. does not adjust your coverage based on inflation, since this could end up costing you more in annual
1. Why should you never designate minor children as your primary beneficiary, but instead put assets intended for them into a trust?
a. Because they cannot be trusted to manage their own money
b. Because their guardians will likely mismanage the funds
c. Because minors cannot legally inherit money
d. Because the money will be held in probate court for over a year
2. Having a durable power of attorney for health care (PoA) in place is a good idea in the event that
a. your physician may recommend medical treatments that you are not able to afford
b. your family is opposed to some of your wishes or is divided about them
c. you only want certain doctors to treat you in a medical emergency
d. you want the PoA to remain in effect even if you become incapacitated
3. What is the main difference between a will and a living will?
a. A will outlines how your belongings are passed on to others, and a living will outlines how the people mentioned in your will can use those belongings.
b. A living will explains who will make decisions for you in medical situations, and a will explains who should receive your assets.
c. A will lists all your personal belongings, and a living will lists all your medical contacts.
d. A living will outlines what medical treatments you want, and a will outlines how your belongings are passed on to others.
4. Funding a revocable living trust involves which of the following:
a. Writing a will to handle your 401k and other non-property assets
b. Assigning title of your assets to the trust
c. Adding an incapacity clause
d. None of the above
5. When purchasing homeowner's insurance, you should look for a policy that
a. will cover the actual cash value of your house and possessions
b. will cover two times the actual cash value of your house and possessions
c. will cover the replacement value of your house and possessions
d. does not adjust your coverage based on inflation, since this could end up costing you more in annual