Understanding Business and Personal Law

Chapter 36: Retirement and Wills

Retirement and Wills


1.	The vesting of retirement benefits
		A)	is available only to government employees.
		B)	takes place after the person reaches his or her 65th birthday.
		C)	guarantees a worker the right to receive a future pension.
		D)	is also called portability.


2.	When a person dies intestate it means
		A)	no adult children were intentionally left out of the will.
		B)	the person died with a will.
		C)	the laws of the state in which the person resided are void.
		D)	the person died without a will.


3.	A federally administered program that provides income to people when their regular income stops because of retirement or disability is called
		A)	Social Security.
		B)	a pension plan.
		C)	a Keogh Plan.
		D)	a 401(K) plan.


4.	When a person dies, there is a waiting period of one year before the assets of the estate can be probated.
		A)	TRUE
		B)	FALSE


5.	If you have an Education IRA, the interest you earn is tax free.
		A)	TRUE
		B)	FALSE


6.	A will that is made in one state may or may not be accepted in another state.
		A)	TRUE
		B)	FALSE


7.	A will may be made by any person who is
		A)	of sound mind and has reached the age of adulthood.
		B)	self-employed and plans to pass the business to his or her heirs.
		C)	owns personal property valued at over $10,000.
		D)	of sound mind and over 16 years of age.


8.	State laws contain provisions to protect surviving family members when a spouse dies.
		A)	TRUE
		B)	FALSE


9.	Under a 401(K) plan, employees are given a bonus each year as part of their salary.
		A)	TRUE
		B)	FALSE


10.	Burning, tearing, canceling, or obliterating a will with intent will cause it to be
		A)	protected.
		B)	revoked.
		C)	considered intestate.
		D)	executed on demand.