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American College HS330 Exam Syllabus Topics:

American College Fundamentals of Estate Planning test Sample Questions:

1. Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?
1.If the donor retains an interest in property contributed to a qualified charity during lifetime, the value of the property may be included in the donor gross estate.
2.An estate tax charitable deduction is allowed for the full value of property transferred to a qualified charity but only if the property is included in the donor gross estate.

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

2. Many trust instruments provide for the removal of the original trustee.
Valid reasons for removing the original trustee include which of the following?
1.A shift in trust situs is desirable because of changes in law.
2.The beneficiary has moved his or her residence to a distant state.

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

3. 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) 1 only
B) Both 1 and 2
C) 2 only
D) Neither 1 nor 2

4. All the following items are deductions from a decedent's gross estate in determining his adjusted gross estate EXCEPT

A) state death taxes
B) claims against the estate
C) estate administration expenses
D) attorney fees

5. 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

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

Solutions: