LEPT - Wealth Preservation

Description

Legacy and Estate Planning
Lee Fun Yip
Quiz by Lee Fun Yip, updated more than 1 year ago
Lee Fun Yip
Created by Lee Fun Yip over 5 years ago
3
0

Resource summary

Question 1

Question
The four purposes of Legacy and Estate Planning are: [blank_start](1)[blank_end] [blank_start](2)[blank_end] [blank_start](3)[blank_end] [blank_start](4)[blank_end]
Answer
  • ELIMINATES UNCERTAINTY
  • MAXIMIZE WEALTH CREATION
  • ACCUMULATES WEALTH
  • PROVIDES LIQUIDITY
  • DISTRIBUTE WEALTH
  • COVERS COSTS
  • REDUCES COST
  • PROVIDES FUNDING

Question 2

Question
Which of the following are areas that most concern HNWIs that they are least likely to be aware of?
Answer
  • Wealth Growth
  • Wealth Preservation
  • Wealth Accumulation
  • Wealth Distribution

Question 3

Question
Which of the following statements describes HNWI?
Answer
  • Estate planning restricted to mainly income protection and provision for outstanding liabilities
  • Typical solutions are Single Premium products with premium and/or portfolio financing for leveraging purposes
  • Wide range of assets ranging from real estate property (home and investment), equities, mutual funds or unit trusts, currencies and cash
  • Generally very senior management positions or typically business owners
  • Generally high income earner or with huge accumulated assets
  • Estate planning involves passing on wealth to the 2nd generation
  • Typical solutions are big size Regular Premium products and Single Premium products with premium financing for leveraging purposes
  • Estate planning involves complicated structures involving Offshore Trusts, Private Investment Companies and Family Offices

Question 4

Question
Successful people can control a lot of things in life but there are some that even the most powerful person may not necessarily have control over. They are: [blank_start](1)[blank_end] [blank_start](2)[blank_end] [blank_start](3)[blank_end] [blank_start](4)[blank_end] [blank_start](5)[blank_end] [blank_start](6)[blank_end]
Answer
  • ACCIDENTS – DEATH & DISABILITY
  • HOW THEY WANT TO LIVE
  • HEALTH ISSUES
  • MEDICAL – ILLNESSES
  • TIME TO SPEND ON THEIR HOBBIES
  • OLD AGE – MENTAL INCAPACITY, DEMENTIA
  • GOVERNMENT POLICIES
  • FAMILY AFFAIRS
  • FINANCIAL STATUS, ECONOMIC CONDITIONS
  • FINANCIAL KNOWLEDGE
  • BUSINESS PRODUCTIVITY
  • BUSINESS ENVIRONMENT

Question 5

Question
What are the three main factors of consideration in Wealth Preservation? [blank_start](1)[blank_end] [blank_start](2)[blank_end] [blank_start](3)[blank_end]
Answer
  • (1) Volatility of Asset Classes
  • (2) Liquidity of Asset Classes
  • (3) “Leakages” of Assets

Question 6

Question
What are the 6 typical assets groups owned by HNWIs?
Answer
  • REAL ESTATE AND PROPERTIES
  • INVESTMENTS
  • DIGITAL GADGETS AND TECHNOLOGICAL EQUIPMENT
  • CURRENCIES - LOCAL AND FOREIGN
  • COIN COLLECTIONS
  • PERSONAL EFFECTS - JEWELLERY, ART, WATCHES, ETC.
  • BUSINESSES
  • INSURANCE

Question 7

Question
What if death occurs in the middle of an economic downturn? It affects:
Answer
  • MANAGEMENT STRATEGIES
  • SUCCESSION
  • HEALTH
  • WEALTH
  • DECISION MAKING
  • EMOTIONAL STRESS

Question 8

Question
Liquidity in Wealth Preservation is hampered by Estate and/or Inheritance duties, probate process (Grant of Probate - with wills, Letter of Administration - without will), and liquid and non-liquid assets.
Answer
  • True
  • False

Question 9

Question
What is the liquidity status of insurance policies done by first party (proposer and life assured is the same entity)?
Answer
  • Liquid
  • Not liquid

Question 10

Question
What is the liquidity status of insurance policies done by 3rd party (proposer and life assured are different entities)
Answer
  • Liquid
  • Not Liquid

Question 11

Question
The four main leakages in Wealth Preservation refers to... (Select all that applies)
Answer
  • TAXES AND ESTATE DUTIES
  • INHERITANCE
  • LEGAL FEES
  • LOAN AND LIABILITIES
  • PERSONAL LOANS
  • FINAL EXPENSES

Question 12

Question
This statement is “Taxes & Estate Duties must be paid first before transfer of ownership can be completed” ...
Answer
  • True
  • False

Question 13

Question
Cost of legal fees depends on... (Click all that applies)
Answer
  • No. of inheritors
  • Existence of valid will
  • Type and complexity of assests
  • Geographical location of assets

Question 14

Question
A valid will helps to...
Answer
  • MAKES LIFE EASIER
  • ELIMINATE EMBIQUITY, UNCERTAINTY AND/OR CONFUSION
  • GUARANTEES EQUALIZATION OF WEALTH DISTRIBUTION
  • REDUCE UNNECESSARY LEGAL CONFLICTS BETWEEN BENEFICIARIES
  • MAINTAIN COHESION AMONG BENEFICIARIES

Question 15

Question
Communication among lawyers in different countries is one form of leakages where geographical location of assets diverse and complex.
Answer
  • True
  • False

Question 16

Question
Personal guarantees in business assets are one of the major big ticket items under loans and liabilities, in wealth preservation - leakages.
Answer
  • True
  • False

Question 17

Question
Personal guarantee (1) is [blank_start]__________[blank_end] for expansion of business (2) freuqently [blank_start]__________[blank_end]residential real estate property as collateral (3) is a[blank_start]_____________[blank_end]of personal responsibility for loan outside the liabilities of a business (4) failure in servicing a loan [blank_start]_____________[blank_end] (5) - businessmen are [blank_start]_______________[blank_end]of its personal impact when business is profitable
Answer
  • not necessary
  • necessary
  • uses
  • does not use
  • pledge
  • not a pledge
  • results in force selling of collaterals
  • does not affect collaterals
  • mindful
  • not mindful

Question 18

Question
Personal guarantees can disrupt the livelihood of the beneficiaries.
Answer
  • True
  • False

Question 19

Question
Amount to set aside for medical expenses can be calculated based on earnings, age, potential years remaining and current health status.
Answer
  • True
  • False
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