American College Fundamentals of Estate Planning test : HS330

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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 an installment sale is (are) correct?
1.Some portion of the purchase price must be paid in any one taxable year other than the year of sale.
2.Installments due after the seller's death are excludible from the seller's gross estate.

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

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

3. 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

A) the estate tax bracket of the estate
B) whether the executor is otherwise a beneficiary of the estate
C) the income tax bracket of the executor
D) the income tax brackets of the other beneficiaries

4. All the following are grounds for contesting a will EXCEPT:

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

5. 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) terminate the trust
D) change the trustremainderpersons

Solutions: