American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 221:

  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 correct?

  A. A life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.
  B. A joint and survivor annuity is includible to the extent that the survivor paid the purchase price of the contract.
  C. An annuity is includible to the extent of the value determined by the special 10-year averaging rule.
  D. If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6 months after death.
  A. A life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.

• Question 222:

  All the following will be brought back into the donor's gross estate for federal estate tax purposes EXCEPT

  A. the gift taxes paid last year on a gratuitous transfer of real property
  B. a gratuitous transfer of real property with a reserved right to use and enjoy it for life
  C. an outright, gratuitous transfer of real property in contemplation of death
  D. a gratuitous transfer of real property to a revocable inter vivos trust
  C. an outright, gratuitous transfer of real property in contemplation of death

• Question 223:

  Transactions involving a taxable gift include which of the following?

  1.

  A father bought real estate, paid the entire $180,000 purchase price, and titled it jointly with his son with right of survivorship.

  2.

  A father deposited $50,000 in a bank account titled jointly with his daughter with right of survivorship and died before any funds were withdrawn from the account.

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

• Question 224:

  Nontax benefits of lifetime gifts include all the following EXCEPT to

  A. reduce probate and administrative costs
  B. avoid claims of creditors evidenced by liens
  C. provide for the education of the donee
  D. obtain privacy that is not possible to obtain through testamentary transfers
  B. avoid claims of creditors evidenced by liens

• Question 225:

  Tax benefits of making lifetime gifts in excess of the gift tax annual exclusion include all the following EXCEPT:

  A. Appreciation in the value of a gift of real property after the date of the gift increases the donor's federal estate tax liability.
  B. Gift taxes are payable at the same tax rate as estate taxes.
  C. Income taxes can be saved if a high-income donor gives income-producing property to a low- income donee.
  D. The gift tax paid on a gift made more than 3 years prior to the death of the donor avoids inclusion the donor's gross estate.
  A. Appreciation in the value of a gift of real property after the date of the gift increases the donor's federal estate tax liability.

• Question 226:

  All the following statements concerning an estate for a term of years are correct EXCEPT:

  A. An interest may extend beyond the lifetime of the grantor.
  B. The tenant may transfer the property at the end of the term of his interest.
  C. The tenant has the right to possess the property during the term of his interest.
  D. It is an interest in property established for a specific duration.
  B. The tenant may transfer the property at the end of the term of his interest.

• Question 227:

  All the following are grounds for contesting a will EXCEPT:

  A. The testator did not have testamentary capacity.
  B. The widow was bequeathed less than her intestate share.
  C. The instrument is a forgery.
  D. The testator executed a later valid will.
  B. The widow was bequeathed less than her intestate share.

• Question 228:

  All the following statements concerning irrevocable trusts are correct EXCEPT:

  A. An irrevocable trust is treated as a completed gift for estate, gift, and income tax purposes.
  B. An irrevocable trust is one which the grantor cannot terminate and reclaim the trust property.
  C. Property transferred to an irrevocable trust will not be included in the grantor's probate property.
  D. A transfer of property to an irrevocable trust will be ineffective for the purpose of reducing the grantor's gross estate.
  D. A transfer of property to an irrevocable trust will be ineffective for the purpose of reducing the grantor's gross estate.

• Question 229:

  If 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
  B. the spouse of the grantor

• Question 230:

  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 of the person of a minor may not necessarily be the guardian of the minor's property.
  C. A guardian named in a deceased parent's will is not necessarily binding on the court.
  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.