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 Feb 13,2025.
- Exam Code: HS-330
- Exam Name: Fundamentals of Estate Planning Test
- Certification Provider: American College
- Latest update: Feb 13,2025
On the advice of their attorney and accountant, Betsy and John have decided to make substantial transfers. They would like to pass most of their considerable wealth to their grandchildren.
Which of the following statements concerning gifts made to their grandchildren is correct?
- A . The GSTT annual exclusion may be utilized by Betsy and John for each grandchild during life time and at death.
- B . The value of Betsy and John’s GSTT exemption amounts are slightly increased when used at death rather than during life time.
- C . The GSTT annual exclusion is unavailable for years in which Betsy and John make tuition gifts for the grandchildren.
- D . Betsy and John may elect to split any GSTT transfers to the grandchildren.
The decedent, D, died this year.
The facts concerning D estate are:
Gross estate $3,400,000
Marital deduction 0
Charitable deduction 600,000
Funeral & administration expenses 00,000
Gifts made after 1976 170,000
State death taxes payable 192,000
What is D taxable estate?
- A . $2,138,000
- B . $2,358,000
- C . $2,528,000
- D . $2,720,000
On January 1, 2004 a father gave his daughter a $200,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are: Date of issue: July 1, 1992
Premium paid on July 1, 2003 $3200
Terminal reserve on July 1, 2003 20,000
Terminal reserve on July 1, 2004 24,000
What is the value of the policy for federal gift tax purposes?
- A . $ 21,600
- B . $23,200
- C . $23,600
- D . $200,000
A married man has two adult sons. His entire estate is in excess of $1,500,000 and consists entirely of probate assets. He wants to make certain that if he predeceases his wife she will receive all estate income as long as she lives, and the assets remaining at her death will pass equally to their two sons. He wants to pass all assets to this wife and sons as free of federal estate taxes as possible.
To best accomplish these objectives, the man should include which of the following estate plans in his will?
- A . Establish a QTIP trust for haIf his estate and bequeath the remainder to his wife
- B . Establish a marital deduction trust with a general power of appointment for haIf his estate and place the remainder in a QTIP trust
- C . Establish a bypass trust equal to the applicable exclusion amount and place the remainder of his estate in a QTIP trust
- D . Establish a QTIP trust for his entire estate
Among the assets in a decedent’s gross estate is stock in a closely held corporation that was left to a
nephew. The interest passing to the nephew is required to bear the burden of all estate taxes and
expenses.
The relevant facts about this estate are:
Adjusted gross estate $1,200,000
Fair market value of stock in the
closely held corporation 500,000
Administration and funeral expenses 25,000
State inheritance taxes 40,000
Federal estate taxes 160,000
What amount of closely held corporate stock may be redeemed under IRC Section 303 so that the redemption will be treated as a sale or exchange rather than a dividend distribution?
- A . 0
- B . $ 65,000
- C . $225,000
- D . $500,000
A married man died this year leaving a gross estate of $3,200,000.
Additional facts concerning his estate are:
Administration expenses and debts $ 250,000
Marital deduction 1,200,000
Applicable credit amount (2005) 555,800
Applicable exclusion amount (2005) 1,500,000
State death taxes payable 20,400
Under the Unified Rate Schedule for computing estate taxes if the amount with respect to which the tentative tax to be computed is over$1,000,000 but not over $1,250,000, the tentative tax is $345,800, plus 41 percent of the excess of such amount over $1,000,000. If the amount is over $1,250,000 but not over $1,500,000, the tentative tax is then $448,300, plus 43 percent of the excess of such amount over $1,250,000. If the amount is over $1,500,000 but not over $2,000,000, the tentative tax is then $555,800 plus 45% of the excess of such amount over $1,500,000.
Based on these facts, the net federal estate tax payable is
- A . 0
- B . $103,320
- C . $123,720
- D . $128,280
Which of the following statements concerning both estates and complex trusts is correct?
- A . Both must have more than one beneficiary.
- B . Both come into being by operation of law.
- C . Both are monitored by the courts.
- D . Both are required to file income tax returns.
A widow made the following cash gifts during the current year:
Donee Amount of Gift
A qualified charity $40000
A close friend 30,000
Her sister 5,000
Her daughter 15,000
Her brother 10,000
The total amount of the taxable gifts made this year was
- A . $23,000
- B . $45,000
- C . $52,000
- D . $95,000
A man is planning to establish and fund a 20-year irrevocable trust for the benefit of his two sons, aged 19 and 22, and plans to give the trustee power to sprinkle trust income.
From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be the best choice of trustee?
- A . The grantor of the trust
- B . The grantor’s 70-year-old father
- C . The grantor’s 22-year-old son
- D . A bank or trust company
A man died in February of this year. Last year, when he learned that he had a terminal illness, he immediately made the following gifts and filed the required gift tax return:
Fair Market Value
Gift of listed stock to a
qualified charity $100,000
Gift of listed bonds to his wife 200,000
Gift of a boat to his son 10,000
Gift of a sports car to his daughter 10,000
What amount must be brought back to the man’s estate as an adjusted taxable gift in the calculation of his federal estate taxes?
- A . 0
- B . $ 90,000
- C . $280,000
- D . $320,000
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