American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 271:

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

• Question 272:

  A father died leaving his property equally to his wealthy son and his poor daughter. The son wishes to disclaim his share of the inheritance so that it will pass to his sister without his incurring any gift tax liability. In this situation, all the following acts on the part of the son are required EXCEPT:

  A. He must not have received any part of his inheritance or any income from it prior to his refusal to accept it.
  B. His refusal to accept the inheritance must be received by the executor of his father's estate within 9 months of his father's death.
  C. His refusal to accept the inheritance must be in writing.
  D. His refusal to accept the inheritance must direct specifically that his sister is to receive it instead.
  D. His refusal to accept the inheritance must direct specifically that his sister is to receive it instead.

• Question 273:

  A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. All the following statements concerning this action are correct EXCEPT:

  A. At the husband's death, his heirs would get a fully stepped-up tax basis for the property.
  B. At the husband's death, it would be easier to qualify his estate for an IRC Section 303 stock redemption of his business interest.
  C. If the husband dies first, the probate costs of his estate could be increased.
  D. If the husband dies first and leaves the office building outright to his wife, there would be no federal estate tax attributed to its inclusion in his gross estate.
  B. At the husband's death, it would be easier to qualify his estate for an IRC Section 303 stock redemption of his business interest.

• Question 274:

  A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year while still living in the house. The following are relevant facts: The father bought the property in 1980 for $130,000. The fair market value of the property when the gift was made in 1990 was $150,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $220,000. The daughter sold the property 3 months after her father's death for $220,000. She had a gain of

  B. $140,000
  C. $220,000
  D. $120,000
  A

• Question 275:

  To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:

  A. Was the value of the gift property in excess of the annual per-donee exclusion?
  B. Was the transferred property real property or personal property?
  C. Did the donor absolutely, irrevocably, and currently divest himself 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?
  B. Was the transferred property real property or personal property?

• Question 276:

  Which of the following statements concerning ownership of property held in trust is (are) correct?

  1.

  The legal owner of property held in trust is a trustee.

  2.

  The equitable owner of property held in trust is a beneficiary.

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

• Question 277:

  Which of the following members of the estate planning team is responsible for assuring that the client's intentions are expressed in documents that will carry out the final plan?

  A. The lawyer
  B. The investment counselor
  C. The trust officer
  D. The life underwriter
  A. The lawyer

• Question 278:

  All the following assets owned by a decedent pass by operation of law or by contract EXCEPT

  A. death benefits of a pension plan payable to a named beneficiary
  B. jointly owned real estate passing to the surviving joint tenant
  C. life insurance payable to a named beneficiary
  D. probate assets passing under the terms of a valid will
  D. probate assets passing under the terms of a valid will

• Question 279:

  Which of the following statements concerning both estates and complex trusts is correct?

  A. Both are required to file income tax returns.
  B. Both are monitored by the courts.
  C. Both must have more than one beneficiary.
  D. Both come into being by operation of law.
  A. Both are required to file income tax returns.

• Question 280:

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

  A. Two brothers own equal amounts of all the common stock in a corporation, the only asset of which is real property.
  B. Two brothers are equal partners in a general partnership that owns a piece of real property used in the partnership business.
  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.