American College HS-330 Online Practice Questions and Exam Preparation

American College HS-330 Online Questions & Answers

• Question 71:

  All the following statements concerning the ownership of real property as joint tenants with right of survivorship are correct EXCEPT:

  A. If the joint tenants are husband and wife, because this is a qualified joint interest, one half the value of the property will be in the estate of the first spouse to die regardless of which spouse contributed to the purchase price.
  B. If three sisters inherited property as joint tenants with right of survivorship, the entire value of the property will be in the estate of the first sister to die.
  C. If the joint tenants are brother and sister, no portion of the value of the property will be in the sister's estate if she dies first provided her executor proves that the brother contributed all the funds.
  D. If the joint tenants are two brothers and each contributed one half the property's purchase price, only one half the property's value will be in the estate of the first brother to die if his executor proves that the other brother contributed half of the purchase price.
  B. If three sisters inherited property as joint tenants with right of survivorship, the entire value of the property will be in the estate of the first sister to die.

• Question 72:

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

• Question 73:

  All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:

  A. The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
  B. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
  C. Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
  D. All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
  B. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.

• Question 74:

  Which of the following factors is (are) used to make a choice between having an entity-purchase or cross-purchase partnership buy-sell agreement?

  1.

  The cost basis of the partners' business interests.

  2.

  The amount of the partners?individual personal net worths.

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

• Question 75:

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

• Question 76:

  Generally all the following statements concerning life insurance arrangements for partnership buy- sell agreements are correct EXCEPT:

  A. With an entity-purchase agreement the partnership strives to maintain face amounts of coverage equal to its obligations under the agreement.
  B. With a cross-purchase agreement each partner purchases life insurance on the life of each of the other partners.
  C. With an entity-purchase agreement the formula used for determining the number of life insurance policies needed is N (number of partners) + 1.
  D. With a cross-purchase agreement the individual partners are the applicants, owners, beneficiaries and premium-payers of the policies.
  C. With an entity-purchase agreement the formula used for determining the number of life insurance policies needed is N (number of partners) + 1.

• Question 77:

  All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:

  A. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
  B. The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
  C. Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
  D. All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
  A. In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.

• Question 78:

  All the following are grounds for contesting a will EXCEPT:

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

• Question 79:

  A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

  A. Wife $9,000, husband $9,000
  B. Wife 0, husband $18,000
  C. Wife $18,000, husband 0
  D. Wife $19,000, husband $19,000
  A. Wife $9,000, husband $9,000

• Question 80:

  Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?

  A. The GSTT rate applicable to a transfer depends upon the amount of the gift.
  B. The lifetime exemption shelters a maximum of $1 million of transfers to grandchildren from GSTT for the current year.
  C. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.
  D. The annual exclusion against GSTT shelters gifts by a grandparent to a trust benefitting multiple grandchildren.
  C. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.