12. A registered representative is discussing the benefits of QTPs with a suple who is interested in establishing such a plan for their grandson. The husband asks, "What happens to the plan if I die or become incapacitated, especially if I make a significant contribution to the plan?" The financial advisor should explain O A) a probate court would decide the ownership of the plan funds O B) an alternate beneficiary must be named to receive the plan funds O C) all assets in the plan would revert automatically to the ownership of the designated beneficiary O D) if a plan contributor dies or becomes incapacitated, a successor owner designated by the contributor (most likely the wife in this situation) assumes full control of the account 13. Which of the following statements regarding prepaid tuition programs id college savings plans is NOT true? O A) Investors in college savings plans need to consider both inflation and market risk when investing funds for future education needs. O B) The college savings plan contributor bears neither inflation nor investment risk. C) Many college savings plans offer an investment option in which the investment allocation automatically shifts over time to reflect the available time horizon for use of the funds as the designated beneficiary approaches college age. O D) Contributors to prepaid tuition programs attempt to avoid both inflation and investment risk because they are purchasing future tuition credits, units, or certificates at the current established rates. 14. According to the IRC, the maximum annual gift tax exclusion for Rich I and Julie, a married couple, to consider in making a contribution to their son's QTP is O A) $10,000 O B) $110,000 C) twice the gift and estate exclusion amount O D) twice the annual gift tax exclusion

Answer rating: 100% (QA)

Answer The correct answer is D if a plan contributor dies or becomes incapacitated a successor owner ... View the full answer