Free HS-330 Exam Dumps Preview

Which of the following statements concerning marital transfers to a non-U.S. citizen spouse is (are) correct?

1. A marital deduction is automatically available as long as property is transferred outright to the non-citizen spouse.

2. A marital deduction is automatically available if the transferor-decedent spouse is a U. S.
citizen.

Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is (are) correct?

- A life annuity with a period certain is includible to the extent of the present value of any remaining
guaranteed payments.
- If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6
months after death.

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

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

- An annual exclusion against GSTT will shelter gifts by a grandparent to a trust benefitting multiple
grandchildren.
- Tuition payments made directly by a grandparent to a university for a grandchild's education are exempt
from GSTT.

All the following statements concerning the generation-skipping transfer tax (GSTT) are correct EXCEPT:

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 father and son have been farming land owned by the father for the past 12 years. Just prior to his death, the father was offered $900,000 for his farm because of its possible use as a shopping center. The son would like to continue to farm the land if it can be included in his father's estate at its current use value.
Additional facts are:

1. Average annual gross rentals from nearby farms of similar acreage are $36,000.

2. Average annual state and local real estate taxes on the farm are $4,000.

3. The interest rate for loans from the Federal Land Bank is 8 percent.

For federal estate tax purposes, the farm method valuation formula would result in a current use value for the farm of

The personal representative of a decedent has the duty to file which of the following income tax returns?

1. The decedent's final income tax return

2. The estate's income tax return

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:

When the owner of a closely held business dies, the payment of a portion of the federal estate tax may be deferred for a period of several years if the estate otherwise qualifies under the provisions of IRC Section
6166.

Which of the following statements concerning this deferral of federal estate tax is correct?

A wife owns a $100,000 life insurance policy on her husband's life. She has named her son the revocable beneficiary. Which of the following statements concerning the life insurance is (are) correct?

1. At the husband's death, the interpolated terminal reserve of the policy is a gift to the son.

2. The annual increase in the cash value is a gift to the son.

A man established and funded an irrevocable trust and named a bank as trustee. All income from the trust is to be paid to his four grandchildren. Which of the following powers retained by the grantor of the trust will cause all or a portion of the trust assets to be includible in his gross estate for federal estate tax purposes?

1. The power to add principal to the trust

2. The power to vary the amounts of trust income paid to each grandchild

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:

Which of the following statements concerning a simple trust is correct?

Requirements for property to qualify for the federal estate tax marital deduction include which of the following?

1. The property interest must be includible in the decedent's gross estate.

2. The property must pass in such manner that it will be includible in the surviving spouse's estate at death unless consumed or given away.

Believing that his death was imminent, a widower gave his son some real estate two years ago and filed a timely gift tax return. The widower died on January 1st of this year. The additional facts are:

- Widower's basis in the real estate $400,000
- Value of the real estate when gifted 1,000,000
- Value of the real estate on date of death 2,000,000
- Amount of gift tax paid by widower 345,800

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:

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

Believing that his death was imminent, a widower gave his son some real estate two years ago, and filed a timely gift tax return. The widower died on January 1st of this year. Additional facts are:

- Widower's basis in the real estate $200,000
- Value of real estate when gifted 510,000
- Value of real estate on date of death 1,000,000
- Amount of gift tax paid by widower 159,500

Which of the following are ways of passing property from a deceased spouse to a surviving spouse so that the property will qualify for the federal estate tax marital deduction?
1. When the surviving spouse receives the property by electing to take against the deceased spouse's will

2. When the surviving spouse receives the property as a consequence of the qualified disclaimer of another beneficiary

Which of the following statements concerning the valuation of intangible personal property in the gross estate of a decedent is correct?

A father wants to accumulate funds for his 12-year-old son's college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:

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

All the following trust provisions avoid causing the inclusion of an irrevocable life insurance trust in an
insured's gross estate EXCEPT

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

A father is considering giving his daughter a gift.
For tax planning purposes, the father should give his daughter which of the following?

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife.

Which of the following courses of action would best accomplish these objectives?

Which of the following statements concerning charitable remainder unitrusts is correct?

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

A father is considering giving his daughter a gift.
For tax planning purposes, the father should give his daughter which of the following?

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.

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

1. The person or entity who has title to the property is the legal owner of the property.

2. The person who has the right to all income earned on the property is the beneficial or equitable owner of the property.

Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is (are) correct?

1. A life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.

2. If the executor elects the alternate valuation date, an annuity is includible at its replacement cost 6 months after death.

The Decedent, T, died this year. The facts concerning T estate are:

- Gross estate $2,700,000
- Marital deduction 900,000
- Charitable deduction 110,000
- Gifts made after 1976 130,000
- State death taxes payable 165,000

A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT

All the following statements concerning a typical pour-over trust are correct EXCEPT:

A married man died this year leaving a gross estate of $2,700,000. Some additional facts concerning his estate are:

- Administration expenses and debts $300,000
- Marital deduction 800,000
- Applicable credit amount (2005) 555,800
- Applicable exclusion amount (2005) 1,500,000
- State death taxes payable 17,700

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

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife.

Which of the following courses of action would best accomplish these objectives?

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

All the following are conditions that must be met if an otherwise nonqualified terminable interest is to qualify (as QTIP) for the federal estate tax marital deduction EXCEPT:

All the following are conditions that must be met if an otherwise nonqualified terminable interest is to qualify (as QTIP) for the federal estate tax marital deduction EXCEPT:

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

All the following statements concerning filing the federal estate tax return are correct EXCEPT:

A father is considering giving his daughter a gift.
For tax planning purposes, the father should give his daughter which of the following?

All the following will be brought back into the donor's gross estate for federal estate tax purposes EXCEPT

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

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

The executor of an estate has a choice of waiving the executor's fee. Factors that should be considered by the executor in making this choice include all the following EXCEPT

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 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?

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

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

The decedent, D, died this year. The facts concerning D estate are:

- Gross estate $3,400,000
- Marital deduction 0
- Charitable deduction 600,000
- Funeral & administration expenses 80,000
- Gifts made after 1976 170,000
- State death taxes payable 192,000

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

The federal gift tax is

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

1. A will should be reviewed periodically to assure that the property owner's most recent intentions are honored at death.

2. Once signed, a will's provisions may not be changed without the consent of all the beneficiaries under the will.

A taxable gift has been made in which of the following situations?

1. A father manages his disabled son's business for a year without compensation since a replacement manager would have cost $25,000.

2. A father verbally promises his 21-year-old daughter that he will give her his antique Mercedes when she graduates from college next year.

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

The following are facts concerning a decedent's estate:

- Taxable estate $1,800,000
- Pre-1977 taxable gifts 100,000
- Post-1976 adjusted taxable gifts 150,000
- Post-1976 gifts made to a qualified charity 200,000

On January 1, 2004 a father gave his daughter a $50,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:

Date of issue: July 1, 1992

- Premium paid on July 1, 2003 $800
- Terminal reserve on July 1, 2003 5,000
- Terminal reserve on July 1, 2004 6,000

Which of the following statements concerning the valuation of intangible personal property in the gross estate of a decedent is correct?