Free HS330 Questions for American College HS330 Exam

Question #1

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

A. A fixed percentage of not less than 10 percent of the net fair market value of the trust assets is paid to thenoncharitable beneficiaries.

B. The net fair market value of the trust assets are revalued annually.

C. The remainder interest is paid to the qualified charity after a term of years not greater than 15 years.

D. No further contributions may be made to aunitrust after the initial payment.

Discussion 0

Correct Answer: B Vote an answer

Question #2

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.

A. Both 1 and 2

B. 1 only

C. Neither 1 nor2

D. 2 only

Discussion 0

Correct Answer: C Vote an answer

Question #3

An executor elects to value the assets of the estate at the alternative valuation date 6 months after death. Which of the following statements concerning the estate tax value of assets included in this estate is correct?

A. Property distributed under the will before the alternate valuation date is valued at the date of death.

B. Property that has increased in value since the date of death may be valued at the date of death if the executor so elects.

C. Property sold before the alternate valuation date is valued at the alternate valuation date.

D. An annuity included in the gross estate that diminishes with the mere passage of time is includible at the date of death value.

Discussion 0

Correct Answer: D Vote an answer

Question #4

All the following statements concerning the gift and estate tax chartiable deduction are correct EXCEPT:

A. 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.

B. 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.

C. A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to anoncharitable donee.

D. It is possible for a charitable contribution made during the donor lifetime to generate both income and transfer tax deductions for the donor.

Discussion 0

Correct Answer: C Vote an answer

Question #5

All the following statements concerning guardians for minors are correct EXCEPT:

A. A guardian named in a deceased parent's will is not necessarily binding on the court.

B. A special guardian can be appointed by the court to protect a minor's rights in a legal proceeding.

C. A guardian of the person of a minor may not necessarily be the guardian of the minor's property.

D. A guardian has equitable title to the property he administers for the minor.

Discussion 0

Correct Answer: D Vote an answer

Question #6

All the following statements concerning wills are correct EXCEPT:

A. In most states a surviving spouse can elect against a will that completely disinherits him or her.

B. A testator may lose the capacity to revoke a will prior to death.

C. A codicil is a valid modification of a will.

D. Once a person is named as an executor in awill, he or she is required to serve.

Discussion 0

Correct Answer: D Vote an answer

Question #7

An executor elects to value the assets of the estate at the alternative valuation date 6 months after death. Which of the following statements concerning the estate tax value of assets included in this estate is correct?

A. Property distributed under the will before the alternate valuation date is valued at the date of death.

B. Property that has increased in value since the date of death may be valued at the date of death if the executor so elects.

C. Property sold before the alternate valuation date is valued at the alternate valuation date.

D. An annuity included in the gross estate that diminishes with the mere passage of time is includible at the date of death value.

Discussion 0

Correct Answer: D Vote an answer

Question #8

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:

A. The father's annual gift tax exclusion must be reduced by any amount used to pay college tuition costs.

B. The trust must be irrevocable.

C. In the event of the son's death prior to age 21, trust assets must either be payable to the son's estate or be subject to a general power of appointment held by the son.

D. Any accumulated income and all trust principal must be available for distribution to the son when he attains age 21.

Discussion 0

Correct Answer: A Vote an answer

Question #9

Which of the following areas of consideration present common ethical issues for the estate planner?

A. Conformity

B. Cooperation

C. Conservancy

D. Contractuality

Discussion 0

Correct Answer: B Vote an answer

Question #10

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. Both 1 and 2

B. Neither 1 nor 2

C. 1 only

D. 2 only

Discussion 0

Correct Answer: B Vote an answer

Question #11

Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?
1.A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to a noncharitable donee.
2.A decedent-spouse estate may obtain both marital and charitable deductions for interests contributed to a charitable remainder trust when the surviving spouse is the only noncharitable income beneficiary for life.

A. Both 1 and 2

B. Neither 1 nor 2

C. 1 only

D. 2 only

Discussion 0

Correct Answer: D Vote an answer

Question #12

A single man with substantial assets and income is supporting his 80-year-old partially senile mother with monthly cash gifts. He is trying to find a practical way to support his mother while at the same time saving federal gift and income taxes without giving up ultimate control of any assets. Which of the following courses of action will best accomplish these objectives?

A. Make her an interest free loan with a principal amount large enough to produce sufficient income for her support when invested in corporate bonds

B. Purchase corporate bonds that pay interest in an amount sufficient for her to support herself and assign the interest payments to her

C. Make her annual gifts of enough interest income from the tax free municipal bonds in his portfolio so that she will be able to support herself

D. Make her a gift of enough corporate bonds from his portfolio so that she will be able to support herself from the interest payments

Discussion 0

Correct Answer: C Vote an answer

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