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 25,2025.
- Exam Code: HS-330
- Exam Name: Fundamentals of Estate Planning Test
- Certification Provider: American College
- Latest update: Apr 25,2025
All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charily are correct EXCEPT:
- A . A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured’s death qualifies for a charitable deduction.
- B . The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
- C . An estate may deduct the value of the remainder interest in a charitable remainder trust.
- D . The amount of a charitable deduction may not exceed 50 percent of a decedent’s adjusted gross
estate.
All the following statements concerning an entity-purchase buy-sell agreement for a partnership are correct EXCEPT:
- A . The partnership makes payments to the decedent-partner’s estate to liquidate the partnership interest held by the estate.
- B . Both the partners and the partnership are parties to the agreement that provides for business continuation.
- C . It is the surviving partners who purchase the decedent’s business interest so that the partnership can afford to pay the decedent’s estate.
- D . The partnership in effect, liquidates the interest held by the decedent-partner’s estate.
To determine whether a taxable gift has been made, the IRS focuses on all the following factors
EXCEPT:
- A . Was the transferred property real property or personal property?
- B . Was the value of the gift property in excess of the annual per-donee exclusion?
- C . Did the donor absolutely, irrevocably, and currently divest himseIf of dominion and control? over the property?
- D . Was the property transferred for less than an adequate and full consideration in money or money’s worth?
Ignoring the annual per-donee exclusion, all the following transfers are gifts for federal gift tax purposes EXCEPT:
- A . A creditor cancels the promissory note of a friend who recently became unemployed.
- B . A grandmother reimburses her grandson for his college tuition costs.
- C . A father lends his daughter a large sum of money interest free for a period of 2 years.
- D . An individual gratuitously performs valuable services for the benefit of a close friend.
All the following statements concerning property ownership by a married couple residing in a community-property state are correct EXCEPT:
- A . All property that is not separate property is community property.
- B . Community property loses its identity when a community-property couple moves to a common-law state.
- C . Property inherited during the marriage is the separate property of the spouse who inherited it.
- D . Income earned by one spouse becomes community property.
All the following powers held by the grantor of an irrevocable trust will cause the trust assets to be brought back into the estate of the grantor EXCEPT the power to:
- A . terminate the trust
- B . change the trust remainder persons
- C . add principal to the trust
- D . designate who shall enjoy the trust income
A father wants to accumulate funds for his 12-year-old son’s college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:
- A . The trust must be irrevocable.
- B . The father’s annual gift tax exclusion must be reduced by any amount used to pay college tuition costs.
- C . Any accumulated income and all trust principal must be available for distribution to the son when he attains age 21.
- D . In the event of the son’s death prior to age 21, trust assets must either be payable to the son’s estate or be subject to a general power of appointment held by the son.
Believing that his death was imminent, a widower gave his son some real estate two years ago, and
filed a timely gift tax return. The widower died on January 1st of this year.
Additional facts are:
Widower’s basis in the real estate $150,000
Value of real estate when gifted 400,000
Value of real estate on date of death 800,000
Amount of gift tax paid by widower 121,600
Assuming the widower made no additional gifts to his son, all the following statements concerning this situation are correct EXCEPT:
- A . The gift of the real estate is included in the calculation of the widower’s federal estate tax as an adjusted taxable gift.
- B . The son’s income tax basis in the real estate is $800,000.
- C . The gift tax paid is brought back into the widower’s gross estate at $121,600.
- D . The widower recognized no gain for income tax purposes at the time the gift was made.
All the following statements concerning the ownership of real property as joint tenants with right of survivorship are correct EXCEPT:
- A . If the joint tenants are brother and sister, no portion of the value of the property will be in the sister’s estate if she dies first provided her executor proves that the brother contributed all the funds.
- B . If three sisters inherited property as joint tenants with right of survivorship, the entire value of the property will be in the estate of the first sister to die.
- C . If the joint tenants are husband and wife, because this is a qualified joint interest, one haIf the value of the property will be in the estate of the first spouse to die regardless of which spouse contributed to the purchase price.
- D . If the joint tenants are two brothers and each contributed one haIf the property’s purchases price, only one haIf the property’s value will be in the estate of the first brother to die if his executor proves that the other brother contributed haIf of the purchase price.
All the following statements concerning transfers at death under a will are correct EXCEPT:
- A . The most appropriate way to sever a joint tenancy with right of survivorship is for the joint tenant-decedent to make a specific bequest of the property under a will.
- B . If during life time a decedent disposed of property that was the subject of a specific bequest, ad emption occurs.
- C . It is common for a will to contain a clause that exempts the executor from posting bond.
- D . Specific bequests of a decedent’s property are satisfied prior to distribution of the decedents residuary estate.
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