HS-330 exam

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...

A father plans to create a trust for the benefit of his 22-year-old son and wishes to take advantage of the gift tax annual exclusion. He has named a bank as trustee. Which of the following trust provisions would cause the gifts to be ineligible to qualify for the gift...

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.View AnswerAnswer: D

Which of the following provisions is (are) generally common to all buy-sell agreements? l. Provisions specifying how the purchase price is to be funded. II. Statement indicating the purpose of the agreement.A . l onlyB . II onlyC . Both l and lID . Neither I nor IIView AnswerAnswer: C

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...

Losses resulting from which of the following occurrences constitutes a permissible deduction from a decedent’s gross estate to determine the adjusted gross estate? l. Unreimbursed losses of estate assets due to theft. Il. Unreimbursed losses of estate assets due to a storm.A . l onlyB . II onlyC . Both...

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...

Many trust instruments provide for the removal of the original trustee. All the following are valid reasons for removal of a trustee EXCEPT:A . A shift in trust situs is desirable because of changes in law.B . The beneficiary has been successful with investments and wants to manage the trust...

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...

Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct? l. A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to a no charitable donee....