American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 231:

  A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate outright to his wife. The following are relevant facts about the estate:

  -Gross estate $2,000,000

  -Estate administration expenses 50,000

  -Debts of decedent 200,000

  -

  Allowable funeral expenses 5,000

  A. $1,745,000
  B. $1,750,000
  C. $1,795,000
  D. $1,800,000
  A. $1,745,000

• Question 232:

  All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:

  A. A direct cash gift of $50,000 from a grandparent to his grandchild if such grandchild's parents are still alive.
  B. A distribution to a grandchild from a sprinkle trust created by a grandparent to benefit both skip and non-skip beneficiaries.
  C. A termination of a trust at the death of the nonskip life income beneficiary with the remainder distributed solely to skip persons.
  D. A direct cash payment of $28,000 from a grandparent to a private prep school to cover the tuition costs for her grandchild.
  D. A direct cash payment of $28,000 from a grandparent to a private prep school to cover the tuition costs for her grandchild.

• Question 233:

  Which of the following statements concerning state death taxes is correct?

  A. A state inheritance tax is imposed on the right of the deceased to leave property to heirs.
  B. A state estate tax is imposed on the right of heirs to receive property from the deceased.
  C. State estate and inheritance taxes are generally imposed at the same rate regardless of the relationship of the deceased to the beneficiary.
  D. A deduction for the full amount of state death taxes paid by a decedent estate is allowed on a decedent federal estate tax return.
  D. A deduction for the full amount of state death taxes paid by a decedent estate is allowed on a decedent federal estate tax return.

• Question 234:

  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

  Assuming that the widower's will provides for the distribution of his assets in equal shares to his children, per stirpes, which of the following correctly states the amounts each descendant will receive?

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

• Question 235:

  Which of the following types of real property ownership will be deemed to be a tenancy in common?

  A. Two brothers are equal partners in a general partnership that owns a piece of real property used in the partnership business.
  B. Two brothers own equal amounts of all the common stock in a corporation, the only asset of which is real property.
  C. Two brothers own equal fractional interests in a piece of real property and at the death of one of the brothers the survivor will own the entire piece of property.
  D. Two brothers own equal undivided interests in a piece of real property, with each brother being able to divest himself of his interest by sale, gift, or will.
  D. Two brothers own equal undivided interests in a piece of real property, with each brother being able to divest himself of his interest by sale, gift, or will.

• Question 236:

  Which of the following statements concerning the estate tax marital deduction is correct?

  A. The marital deduction available to a decedent in a common-law state is limited to a maximum of $1 million.
  B. The marital deduction available to a decedent in a common-law state is equal to the net amount of qualifying property passing to the surviving spouse.
  C. The marital deduction available to a decedent in a community-property state is equal to the total amount of community property.
  D. The marital deduction available to a decedent in a common-law state is equal to one half the adjusted gross estate.
  B. The marital deduction available to a decedent in a common-law state is equal to the net amount of qualifying property passing to the surviving spouse.

• Question 237:

  Which of the following statements concerning charitable remainder annuity trusts is correct?

  A. It provides a fixed annuity income interest to a qualified charity.
  B. The donor receives an estate tax charitable deduction for the value of the remainder interest.
  C. The term of charitable remainder annuity arrangements is limited to 10 years.
  D. The interest paid to the charity must be paid at least quarterly.
  B. The donor receives an estate tax charitable deduction for the value of the remainder interest.

• Question 238:

  Which of the following terms applies to the blending together of separate and community properties of spouses in community-property states?

  A. Proration
  B. Inception
  C. Commingling
  D. Transmutation
  C. Commingling

• Question 239:

  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 tax annual exclusion?

  -

  The trust income is to be paid to the son or accumulated at the discretion of the trustee.

  -

  The income is to be accumulated until the son reaches age 32 when all accumulated income and principal are to be distributed to him.

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

• Question 240:

  All the following statements concerning property ownership by a married couple residing in a community-property state are correct EXCEPT:

  A. Income earned by one spouse becomes community property.
  B. Property inherited during the marriage is the separate property of the spouse who inherited it.
  C. All property that is not separate property is community property.
  D. Community property loses its identity when a community-property couple moves to a common- law state.
  D. Community property loses its identity when a community-property couple moves to a common- law state.