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 22,2025.
- Exam Code: HS-330
- Exam Name: Fundamentals of Estate Planning Test
- Certification Provider: American College
- Latest update: Apr 22,2025
Under the terms of his will, a man left his residuary estate to a testamentary trust for the benefit of his wife.
Which of the following powers with respect to the trust will cause the entire trust principal to be includible in the gross estate of the widow for federal estate tax purposes?
- A . The power of the widow each year to direct the trustee to pay her the greater of 5 percent of the trust principal or $5,000
- B . The power of the trustee in its sole discretion to distribute trust assets to the widow for any reason satisfactory to the trustee
- C . The power of the widow to direct the trustee to use trust assets to pay her personal debts
- D . The testamentary limited or special power of the widow to direct the trustee to distribute trust assets to her heirs.
Mr. Barlow died early this year. Under the terms of his will he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Barlow. The following is a list of Mr.
Barlow’s probate assets and their fair market values at the time of his death:
Commercial real estate $200,000
Furniture and fixtures 100,000
Listed common stock 150,000
Notes receivable 250,000
In addition, Mrs. Barlow owned a $400,000 life insurance policy on Mr. Barlow’s life with Mr. Barlow’s estate designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow’s estate qualifying for the federal estate tax marital deduction?
- A . $150,000
- B . $400,000
- C . $800,000
- D . $1,100,000
A married man died intestate, in addition to his wife, he was survived by two minor children and both his parents.
Which of the following statements describes the typical intestate distribution in this situation?
- A . The widow receives at least one-third of the estate and the children divide the remainder of the estate equally.
- B . The widow receives one-third of the estate and the remainder is divided equally among the two children and the parents of the decedent.
- C . The widow receives the entire probate estate as trustee for the benefit of the two minor children.
- D . The widow receives haIf the estate and the remaining halt is divided equally between the decedent’s parents.
It a grantor establishes an irrevocable trust; the income of the trust will be taxed to the grantor if it is used to pay premiums for life insurance on the life of
- A . a child of the grantor
- B . the spouse of the grantor
- C . a grandchild of the grantor
- D . the father of the grantor
Which of the following statements concerning ownership of property under a tenancy by the entirety is correct?
- A . One tenant can freely transfer his or her property interest to a third person.
- B . It is a form of property ownership available only to married persons.
- C . The property will be in the probate estate of the first joint tenant to die.
- D . It is a form of property ownership that applies only to personal property.
Which of the following statements concerning state death taxes is correct?
- A . A deduction for the full amount of state death taxes paid by a decedent estate is allowed on a decedent federal estate tax return.
- B . A state estate tax is imposed on the right of heirs to receive property from the deceased.
- C . A state inheritance tax is imposed on the right of the deceased to leave property to heirs.
- D . State estate and inheritance taxes are generally imposed at the same rate regardless of the relationship of the deceased to the beneficiary.
Which of the following statements concerning revocable trusts is correct?
- A . The transfer of properly to a revocable trust is typically motivated by non tax reasons.
- B . A transfer of property to a revocable trust is treated as a completed gift.
- C . A transfer of income-producing properly to a revocable trust will result in favorable income tax treatment for the grantor.
- D . Property of a revocable trust will be included in the grantor’s probate property.
A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate out right to his wife.
The following are relevant facts concerning the estate:
Gross estate $2,400,000
Estate administration expenses 85,000
Debts of decedent 100,000
Allowable funeral expenses 10,000
The amount of the allowable marital deduction is
- A . $2,205,000
- B . $2,215,000
- C . $2,305,000
- D . $2,315,000
A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her.
Which of the following correctly states the amount of the taxable gifts?
- A . Wife 0, husband $18,000
- B . Wife $9,000, husband $9,000
- C . Wife$19,000, husband$19,000
- D . Wife $18,000, husband 0
A woman is the income beneficiary of an irrevocable trust.
Which of the following powers given to her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes?
- A . The testamentary power to direct the trustee to use trust assets to pay her estate taxes
- B . The power to direct the trustee to pay trust assets to her limited in amount to an ascertainable standard relating to her health and education
- C . The power each year to direct the trustee to pay her an amount of trust assets not exceeding the greater of $5,000 or 5 percent of the assets held by the trust
- D . The testamentary special or limited power to direct the trustee to distribute trust assets to her children
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