Estate Planning Flashcards

Property held as joint tenants with right of survivorship passes at the first owner's death how?

Answer: Automatically to the surviving joint tenant by operation of law

The survivorship feature passes ownership directly to the surviving tenant, outside probate and regardless of the will.

What makes a power of attorney 'durable'?

Answer: It stays effective if the principal becomes incapacitated

A durable POA survives the principal's incapacity, but every POA ends at the principal's death.

A 401(k) beneficiary form names the account owner's sister, but the owner's later will leaves 'all my assets' to a son. Who generally receives the 401(k)?

Answer: The sister, because the beneficiary designation controls

Retirement accounts pass by contract under the beneficiary designation, which overrides the will.

Which document states a person's wishes about life-sustaining medical treatment if they become terminally ill and cannot communicate?

Answer: Living will (advance directive)

A living will states end-of-life treatment preferences, while a healthcare proxy names who decides.

Which feature lets a bank account pass directly to a named beneficiary at death without probate?

Answer: Payable-on-death (POD) designation

A POD designation transfers the account to the named beneficiary at death by contract, outside probate.

Which form of co-ownership is limited to married couples and, in many states, protects the property from creditors of only one spouse?

Answer: Tenancy by the entirety

Tenancy by the entirety treats the couple as one owner, so a creditor of just one spouse usually cannot reach the property.

Under the SECURE Act, a non-eligible designated beneficiary (such as an adult child) who inherits an IRA generally must empty the account within what period?

Answer: 10 years

The SECURE Act replaced the lifetime 'stretch' for most non-spouse beneficiaries with a 10-year payout rule.