Understand what a will and living trust each do: test your skills
A will says who gets what and who cares for children; a living trust can pass assets without probate. Many people need at least a will. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Compare a will and a living trust
- Know why beneficiary designations matter
- Understand what happens without a will
- Practice
1. What can a will do that matters most for parents?
- Practice
2. A 401(k) usually passes by…
- Practice
3. A living trust only controls…
- Key idea
4. Which statement best explains "Guardians need a will"?
- Key idea
5. Which statement best explains "Beneficiary forms override wills"?
- Key idea
6. Which statement best explains "Trusts only hold what you put in"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Assets: 401(k) $120,000 (beneficiary named), life insurance $250,000 (named), car $15,000 and savings $10,000 (no beneficiary). How much would pass under the will?
Show the answer
$25,000
Car $15,000 + savings $10,000 (assuming no payable-on-death designation on the savings).
Log in to one retirement account and check who is named as beneficiary.
More tests in this bootcamp
- Compare term and whole life insurance by the need
- Understand how disability insurance protects income
- See where umbrella liability insurance fits
- Understand what a will and living trust each do
- Choose who can act with powers of attorney
- Plan college savings with a 529 account
- Teach money skills with small choices and visible goals
- Final exam: Protection and estate planning