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American College HS330 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Wills and Probate | - Wills
|
| Estate and Gift Taxation | - Federal estate tax system
|
| Trusts | - Trust fundamentals
|
| Property Transfer and Liquidity Planning | - Non-probate transfers
|
| Introduction to Estate Planning | - Purpose and objectives of estate planning
|
American College Fundamentals of Estate Planning test Sample Questions:
1. Which of the following statements concerning a power of appointment is (are) correct?
1.A power of appointment can be designed to restrict the donee's right to appoint the property in favor of a specific class of recipients.
2.A power of appointment can be designed to restrict the time period during which the donee may
exercise the power.
A) Neither 1 nor 2
B) 2 only
C) Both 1 and 2
D) 1 only
2. 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) Neither 1 nor 2
B) 2 only
C) Both 1 and 2
D) 1 only
3. The failure of an individual to have a will can result in which of the following?
1.The state will determine the disposition of the individual's probate estate.
2.The decedent's preference for a personal representative, guardian, and other fiduciary roles may be ignored.
A) Neither 1 nor 2
B) 2 only
C) Both 1 and 2
D) 1 only
4. 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 trust must be irrevocable.
B) The father's annual gift tax exclusion must be reduced by any amount used to pay college tuition costs.
C) Any accumulated income and all trust principal must be available for distribution to the son when he attains age 21.
D) 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.
5. All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:
A) An estate may deduct the value of the remainder interest in a charitable remainder trust.
B) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.
C) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
D) The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |




