American College HS-330 Fundamentals of Estate Planning Test Online Training
American College HS-330 Online Training
The questions for HS-330 were last updated at Apr 26,2025.
- Exam Code: HS-330
- Exam Name: Fundamentals of Estate Planning Test
- Certification Provider: American College
- Latest update: Apr 26,2025
Income earned but unpaid at the time of a decedent’s death is deemed to be income in respect of a decedent (IRD). All the following statements concerning IRD are correct EXCEPT:
- A . The income must be reported on the decedent’s final federal income tax return.
- B . The income is taxable to the person or entity receiving it.
- C . The income may be included on both the estate tax return and the estate income tax return with a corresponding deduction.
- D . IRD includes sales commissions earned prior to the decedent’s death and paid to the estate according to the intestacy laws.
All the following statements concerning the generation-skipping transfer tax (GSTT) are correct
EXCEPT:
- A . Tuition payments made by a grandparent directly to a university for a grandchild’s education are exempt from GSTT.
- B . Direct skip gifts by a grandparent of up to $11,000 can be made to each grandchild without GSTT liability due to an annual exclusion.
- C . Each individual has an aggregate $1.5 million exemption against GSTT.
- D . The liability for GSTT falls upon the donee regardless of the type of transfer.
All the following are steps in calculating a decedent’s maximum estate tax marital deduction EXCEPT:
- A . Compute the decedent’s gross estate.
- B . Subtract the allowable expenses and debts to determine the adjusted gross estate.
- C . Determine the net amount of property in the gross estate that passes to the surviving spouse in a manner qualifying for the marital deduction.
- D . Subtract the applicable exclusion amount available in the year of the decedent’s death.
All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
- A . The deceased spouse’s interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
- B . All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse’s estate.
- C . Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
- D . In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
All the following statements concerning installment sale tax treatment are correct EXCEPT:
- A . If the seller has a gain, the basis portion of each installment is received tax free.
- B . The seller must pay income tax on the interest portion of each installment.
- C . The entire purchase price may be fully paid in any one taxable year other than the year in which the property is sold.
- D . Installments due after the seller’s death are excludible from the seller’s gross estate.
Tax benefits of making life time gifts in excess of the gift tax annual exclusion include all the following
EXCEPT:
- A . The gift tax paid on a gift made more than 3 years prior to the death of the donor avoids inclusion the donor’s gross estate.
- B . Appreciation in the value of a gift of real property after the date of the gift increases the donor’s federal estate tax liability.
- C . Income taxes can be saved if a high-income donor gives income-producing property to a lowincome donee.
- D . Gift taxes are payable at the same tax rate as estate taxes.
All the following statements concerning a typical pour-over trust are correct EXCEPT:
- A . Properly drawn, it eliminates the need to file a federal estate tax return.
- B . The trust is created during the life time of the grantor.
- C . It is a device to consolidate all a decedent’s assets to simplify administration.
- D . The trust is revocable during the life time of the grantor.
All the following will be brought back into the donor’s gross estate for federal estate tax purposes EXCEPT:
- A . a gratuitous transfer of real property with a reserved right to use and enjoy it for life
- B . a gratuitous transfer of real property to a revocable inter vivos trust
- C . an outright, gratuitous transfer of real property in contemplation of death
- D . the gift taxes paid last year on a gratuitous transfer of real property
Limited interests in property include all the following EXCEPT:
- A . life estates
- B . fee simple estates
- C . remainder interests
- D . reversionary interests
All the following are grounds for contesting a will EXCEPT:
- A . The instrument is a forgery.
- B . The testator executed a later valid will.
- C . The testator did not have testamentary capacity.
- D . The widow was bequeathed less than her intestate share.
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