American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 351:

  Mr. Allen died early this year survived by his spouse Mrs. Allen. Among the items of family property are:

  1.A $300,000 life insurance policy on Mr. Allen's life with Mrs. Allen designated as beneficiary. Mrs. Allen has been the owner of the policy ever since it was issued 4 years ago. 2.The family residence with a fair market value of $400,000. Mr. and Mrs. Allen own the residence jointly with the right of survivorship even though Mr. Allen purchased it with his separate funds.

  3.A

  $40,000 bank account. Mr. and Mrs. Allen own the account jointly with the right of survivorship even though Mrs. Allen made all the deposits. What amount of the family property will be included in Mr. Allen's gross estate for federal estate tax purposes?

  A. $500,000
  B. $520,000
  C. $220,000
  D. $400,000
  C. $220,000

• Question 352:

  Important factors in assessing liquidity needs in estate planning include which of the following?

  1.

  The types of assets that comprise the estate

  2.

  The date of drafting the will

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

• Question 353:

  Which of the following statements concerning property is (are) correct?

  1.

  A mortgage on real estate is real property.

  2.

  A tree growing on land is real property.

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

• Question 354:

  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 355:

  The estate planning process includes all the following activities EXCEPT

  A. the selection of the estate plan by the financial planner
  B. evaluating a client's present estate plan
  C. gathering a client's family and financial data
  D. designing a client's new estate plan
  A. the selection of the estate plan by the financial planner

• Question 356:

  Which of the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship is correct?

  A. Qualified joint tenancies cannot be severed without mutual consent.
  B. Upon the death of a joint tenant, the surviving joint tenant receives the decedent's interest by operation of law.
  C. Nonqualified joint tenants may have unequal interests in the property.
  D. This form of ownership is limited to real property.
  B. Upon the death of a joint tenant, the surviving joint tenant receives the decedent's interest by operation of law.

• Question 357:

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

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

• Question 358:

  All the following statements concerning a complex trust are correct EXCEPT:

  A. Beneficiaries must receive all distributable net income in the year received by the trust.
  B. The trustee may make distributions of principal to trust beneficiaries.
  C. A complex trust may make gifts to charity.
  D. Beneficiaries are taxed on their share of distributable net income when received by them.
  A. Beneficiaries must receive all distributable net income in the year received by the trust.

• Question 359:

  A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be a suitable trustee?

  1.

  The grantor of the trust

  2.

  The grantor's 22-year-old son

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

• Question 360:

  Which of the following statements concerning ownership of property under a tenancy by the entirety is correct?

  A. It is a form of property ownership that applies only to personal property.
  B. The property will be in the probate estate of the first joint tenant to die.
  C. One tenant can freely transfer his or her property interest to a third person.
  D. It is a form of property ownership available only to married persons.
  D. It is a form of property ownership available only to married persons.