Certified Kingdom Advisor Practice Exam

Which of the following is not a place where wealth can transfer to?

Heirs Charities Donor Advised Fund Final expenses and taxes

Correct Answer:

Donor Advised Fund

Explanation:

When planning wealth transfer, think about the final recipients of assets. Heirs are direct recipients of an estate. Charities are intended beneficiaries when gifts or bequests are made. Final expenses and taxes are payments the estate must settle before any remaining assets are distributed. A Donor Advised Fund, on the other hand, is a charitable giving vehicle used to manage and grant money to various charities. The funds placed into a DAF don’t stay there as the end recipient; they’re held for the donor’s future grant recommendations and then distributed to other charities. Because the DAF is a conduit rather than the ultimate recipient of the wealth, it’s not considered a place the wealth transfers to in the sense of a final beneficiary.

Access more questions from this quiz

Continue to Certified Kingdom Advisor Practice Exam for more practice questions and the full quiz experience.

Access More Questions