HS-330 Exam Details

  • Exam Code
    :HS-330
  • Exam Name
    :Fundamentals of Estate Planning Test
  • Certification
    :American College Certifications
  • Vendor
    :American College
  • Total Questions
    :400 Q&As
  • Last Updated
    :Jul 14, 2026

American College HS-330 Online Questions & Answers

  • Question 81:

    All the following powers held by the grantor of an irrevocable trust will cause the trust assets to be brought back into the estate of the grantor EXCEPT the power to

    A. designate who shall enjoy the trust income
    B. add principal to the trust
    C. change the trust remainderpersons
    D. terminate the trust

  • Question 82:

    Which of the following statements concerning filing the federal estate tax return is (are) correct?

    1.

    The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS.

    2.

    For persons dying this year, an estate tax return must be filed for gross estates plus adjusted taxable gifts that exceed $1.5 million.

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

  • Question 83:

    Items that are deductions from a decedent's gross estate in determining his adjusted gross estate include which of the following?

    1.

    - Foreign death taxes

    2.

    - State death taxes

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

  • Question 84:

    Income earned but unpaid at the time of a decedent's death is deemed to be income in respect of a decedent (IRD). Which of the following statements concerning IRD is (are) correct?

    1.

    The income is taxable to the person or entity receiving it.

    2.

    The present value of the income is includible in the decedent's gross estate.

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

  • Question 85:

    Among the assets in a decedent's gross estate is stock in a closely held corporation that was left to a nephew. The interest passing to the nephew is required to bear the burden of all estate taxes and expenses. The relevant facts concerning this estate are:

    -Adjusted gross estate $1,600,000

    -Fair market value of stock in the

    -closely held corporation 700,000

    -Funeral expenses 30,000

    -Executor's commission 50,000

    -

    Federal and state death tax 160,000

    B. $ 80,000
    C. $700,000
    D. $240,000

  • Question 86:

    Which of the following statements concerning the so-called "kiddie-tax" on unearned income of children under age 14 is (are) correct?

    1.

    The rules apply to earned income of the children.

    2.

    The rules apply to trust income received by a child under age 14 only if the trust was established by the child's parents.

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

  • Question 87:

    A wife makes outright gifts of $66,000 this year to her son, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

    A. Wife $22,000, husband $22,000
    B. Wife $44,000, husband 0
    C. Wife $12,000, husband $32,000
    D. Wife $32,000, husband $32,000

  • Question 88:

    Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?

    A. A father promises to buy his daughter a condominium when she finishes college.
    B. An individual gratuitously performs valuable services for the benefit of a close friend.
    C. A grandmother pays her grandson's $30,000 tuition at an Ivy League university.
    D. A creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.

  • Question 89:

    A wealthy individual might consider selling a substantially appreciated property interest in an installment sale for which of the following reasons?

    1.

    To spread the taxable gain inherent in the property over the period of the installments

    2.

    To provide a buyer who lacks the requisite funds for a lump-sum purchase with the ability to finance the acquisition

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

  • Question 90:

    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 concerning the estate:

    -Gross estate $2,400,000

    -Estate administration expenses 85,000

    -Debts of decedent 100,000

    -

    Allowable funeral expenses 10,000

    A. $2,315,000
    B. $2,205,000
    C. $2,305,000
    D. $2,215,000

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