Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Basics of Estate Planning

In the context of estate planning for an individual, which document takes effect only after the death of the person making it and directs how his self-acquired assets are to be distributed?

A will is the document that takes effect only after the maker's death and directs how his assets are distributed. Other instruments such as gift deeds, irrevocable trusts and powers of attorney either operate during lifetime or lapse on death.

  1. APower of attorney
  2. BWillCorrect
  3. CGift deed
  4. DTrust deed creating an irrevocable trust during lifetime

Explanation

A will is a legal declaration of a person's wishes about distribution of property after death and operates only on death. A power of attorney ends on the death of the principal. A gift deed and an irrevocable trust transfer assets during lifetime.

Did you get it right without looking?

One question tells you little. A timed set on Basics of Estate Planning shows your real accuracy, how long you take and where you lose marks.

Practise Basics of Estate PlanningFree diagnostic mock

More Basics of Estate Planning questions