American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 141:

  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 special or limited power to direct the trustee to distribute trust assets to her children
  B. The testamentary power to direct the trustee to use trust assets to pay her estate taxes
  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 power to direct the trustee to pay trust assets to her limited in amount to an ascertainable standard relating to her health and education
  B. The testamentary power to direct the trustee to use trust assets to pay her estate taxes

• Question 142:

  A number of states have passed statutes governing "living wills." Which of the following statements concerning a living will is (are) correct?

  1.

  A living will is an alternative to an inter vivos trust under certain circumstances.

  2.

  A living will is an oral will made by the testator during a final illness when it is impossible to write one.

  A. Both 1 and 2
  B. 1 only
  C. Neither 1 nor 2
  D. 2 only
  C. Neither 1 nor 2

• Question 143:

  Which of the following transfers will be successful in removing property from a grantor's gross estate?

  1.

  A grantor's transfer of property to a revocable trust if the grantor lives three years after the transfer.

  2.

  A grantor's transfer of a personal residence to a qualified personal residence trust if the grantor survives the retained interest term.

  A. Neither 1 nor 2
  B. 1 only
  C. 2 only
  D. Both 1 and 2
  C. 2 only

• Question 144:

  Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is (are) correct?

  1.

  A life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.

  2.

  If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6 months after death.

  A. 2 only
  B. Both 1 and 2
  C. Neither 1 nor 2
  D. 1 only
  D. 1 only

• Question 145:

  All the following statements concerning guardians for minors are correct EXCEPT:

  A. A guardian has equitable title to the property he administers for the minor.
  B. A guardian named in a deceased parent's will is not necessarily binding on the court.
  C. A guardian of the person of a minor may not necessarily be the guardian of the minor's property.
  D. A special guardian can be appointed by the court to protect a minor's rights in a legal proceeding.
  A. A guardian has equitable title to the property he administers for the minor.

• Question 146:

  A widower dies leaving a net probate estate of $300,000. At the time of his death, his descendants are as follows:

  -A son, Joe, who has no children;

  - A deceased daughter, Mary, whose two children, Irene and Sally, survive; and

  -

  A daughter, Anne, who has one child, Harry

  A. $100,000 to Joe, $50,000 to Irene, $50,000 to Sally, $50,000 to Anne, and $50,000 to Harry
  B. $100,000 to Joe, $50,000 to Irene, $50,000 to Sally, and $100,000 to Anne
  C. $60,000 to Joe, $60,000 to Irene, $60,000 to Sally, $60,000 to Anne, and $60,000 to Harry
  D. $75,000 to Joe, $75,000 to Irene, $75,000 to Sally, and $75,000 to Anne
  B. $100,000 to Joe, $50,000 to Irene, $50,000 to Sally, and $100,000 to Anne

• Question 147:

  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

  A. $800,000
  B. $400,000
  C. $1,100,000
  D. $150,000
  A. $800,000

• Question 148:

  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 marital deduction trust with a general power of appointment for half his estate and place the remainder in a QTIP trust
  B. Establish a QTIP trust for half his estate and bequeath the remainder to his wife
  C. Establish a QTIP trust for his entire estate
  D. Establish a bypass trust equal to the applicable exclusion amount and place the remainder of his estate in a QTIP trust
  D. Establish a bypass trust equal to the applicable exclusion amount and place the remainder of his estate in a QTIP trust

• Question 149:

  The executor of an estate has a choice of waiving the executor's fee. Factors that should be considered by the executor in making this choice include all the following EXCEPT

  A. the estate tax bracket of the estate
  B. the income tax brackets of the other beneficiaries
  C. whether the executor is otherwise a beneficiary of the estate
  D. the income tax bracket of the executor
  B. the income tax brackets of the other beneficiaries

• Question 150:

  The failure of an individual to have a will can result in which of the following?

  1.

  The state will determine the disposition of the individual's probate estate.

  2.

  The decedent's preference for a personal representative, guardian, and other fiduciary roles may be ignored.

  A. Neither 1 nor 2
  B. 2 only
  C. 1 only
  D. Both 1 and 2
  D. Both 1 and 2