14352456
Description
Quiz by Lee Fun Yip, updated more than 1 year ago
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Created by Lee Fun Yip
over 6 years ago
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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
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ELIMINATES UNCERTAINTY
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MAXIMIZE WEALTH CREATION
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ACCUMULATES WEALTH
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PROVIDES LIQUIDITY
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DISTRIBUTE WEALTH
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COVERS COSTS
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REDUCES COST
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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
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Wealth Growth
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Wealth Preservation
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Wealth Accumulation
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Wealth Distribution
Question 3
Question
Which of the following statements describes HNWI?
Answer
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Estate planning restricted to mainly income protection and provision for outstanding liabilities
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Typical solutions are Single Premium products with premium and/or portfolio financing for leveraging purposes
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Wide range of assets ranging from real estate property (home and investment), equities, mutual funds or unit trusts, currencies and cash
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Generally very senior management positions or typically business owners
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Generally high income earner or with huge accumulated assets
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Estate planning involves passing on wealth to the 2nd generation
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Typical solutions are big size Regular Premium products and Single Premium products with premium financing for leveraging purposes
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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
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ACCIDENTS – DEATH & DISABILITY
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HOW THEY WANT TO LIVE
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HEALTH ISSUES
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MEDICAL – ILLNESSES
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TIME TO SPEND ON THEIR HOBBIES
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OLD AGE – MENTAL INCAPACITY, DEMENTIA
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GOVERNMENT POLICIES
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FAMILY AFFAIRS
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FINANCIAL STATUS, ECONOMIC CONDITIONS
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FINANCIAL KNOWLEDGE
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BUSINESS PRODUCTIVITY
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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
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(1) Volatility of Asset Classes
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(2) Liquidity of Asset Classes
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(3) “Leakages” of Assets
Question 6
Question
What are the 6 typical assets groups owned by HNWIs?
Answer
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REAL ESTATE AND PROPERTIES
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INVESTMENTS
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DIGITAL GADGETS AND TECHNOLOGICAL EQUIPMENT
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CURRENCIES - LOCAL AND FOREIGN
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COIN COLLECTIONS
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PERSONAL EFFECTS - JEWELLERY, ART, WATCHES, ETC.
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BUSINESSES
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INSURANCE
Question 7
Question
What if death occurs in the middle of an economic downturn? It affects:
Answer
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MANAGEMENT STRATEGIES
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SUCCESSION
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HEALTH
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WEALTH
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DECISION MAKING
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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
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Liquid
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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
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Liquid
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Not Liquid
Question 11
Question
The four main leakages in Wealth Preservation refers to... (Select all that applies)
Answer
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TAXES AND ESTATE DUTIES
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INHERITANCE
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LEGAL FEES
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LOAN AND LIABILITIES
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PERSONAL LOANS
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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
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No. of inheritors
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Existence of valid will
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Type and complexity of assests
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Geographical location of assets
Question 14
Question
A valid will helps to...
Answer
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MAKES LIFE EASIER
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ELIMINATE EMBIQUITY, UNCERTAINTY AND/OR CONFUSION
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GUARANTEES EQUALIZATION OF WEALTH DISTRIBUTION
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REDUCE UNNECESSARY LEGAL CONFLICTS BETWEEN BENEFICIARIES
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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
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not necessary
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necessary
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uses
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does not use
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pledge
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not a pledge
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results in force selling of collaterals
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does not affect collaterals
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mindful
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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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