American College HS330 Exam Practice Test Instant Access

Question 1

A person dying without a will loses all the following rights EXCEPT the right to:

Aname the person to settle the estate

Bhave assets pass to heirs

Cgive properly to a charity

Dtake maximum advantage of the marital deduction

Answer : B

Question 2

An executor may value assets as of the date of death or the alternate valuation date 6 months after death. Assuming the executor elects the alternate valuation date, all the following statements are correct EXCEPT:

AA property interest that diminishes with the mere passage of time, such as a patent, is includible at the date of death value.

BProperty sold by the executor before the alternate valuation date is valued at its sale price.

CProperty that has increased in value since the date of death is valued at the alternate valuation date.

DProperty distributed under the will within the alternate valuation period is valued at the date of death.

Answer : D

Question 3

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:

Aterminate the trust

Bchange the trust remainder persons

Cadd principal to the trust

Ddesignate who shall enjoy the trust income

Answer : C

Question 4

All the following are grounds for contesting a will EXCEPT:

AThe instrument is a forgery.

BThe testator executed a later valid will.

CThe testator did not have testamentary capacity.

DThe widow was bequeathed less than her intestate share.

Answer : D

Question 5

Non tax benefits of life time gifts include all the following EXCEPT to:

Aavoid claims of creditors evidenced by liens

Breduce probate and administrative costs

Cobtain privacy that is not possible to obtain through testamentary transfers

Dprovide for the education of the donee

Answer : A

Question 6

For estate tax purposes which of the following is (are) a form of charitable gifts that may qualify for the charitable deduction?

l. Split gifts

ll. Charitable remainder trusts

Al only

BII only

CBoth l and II

DNeither I nor II

Answer : C

Question 7

A number of states have passed statutes governing ''living wills.'' Which of the following statements concerning a living will is (are) correct?

l. A living will is an alternative to an inter vivos trust under certain circumstances.

lI. A living will is an oral will made by the testator during a final illness when it is impossible to write one.

Al only

BII only

CBoth l and ll

DNeither I nor II

Answer : D

American College HS330 Fundamentals of Estate Planning test Exam Practice Test