Free American College Fundamentals of Estate Planning test HS330 Exam Questions

Which of the following statements concerning a testamentary trust is correct?

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?

Which of the following statements concerning a power of appointment is (are) correct?

l. 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.

ll. A power of appointment can be designed to restrict the time period during which the donee may exercise the power.

If a grantor establishes an irrevocable trust, the income of the trust will be taxed to the grantor if it is used to pay premiums for life insurance on the life of

All the following will be brought back into the donor's gross estate for federal estate tax purposes EXCEPT:

Which of the following statements concerning federal gift, estate, and income taxes is (are) correct

1. A taxable gift of income-producing property automatically transfers income tax liability to the donee.

2. The value of gifts made within 3 years of death cannot be brought back into the donor's gross estate.

Which of the following statements concerning the so-called ''kiddie-tax'' on unearned income of children under age 14 is (are) correct?

l. The rules apply to earned income of the children.

II. The rules apply to trust income received by a child under age 14 only if the trust was established by the child's parents.

Which of the following statements concerning property is (are) correct?

1. Personal property is all property that is not considered to be real property.

2 .A mortgage on real property is treated as real property.

An individual who is a resident of State W is also the sole proprietor of a business located in State W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z. Which state will tax the real property used by the proprietorship?

All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:

Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is correct?

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?

Which of the following statements concerning estates and trusts is (are) correct?

1. Both estates and trusts come into being by operation of law.

2. The personal representative of an estate and the trustee have similar fiduciary responsibilities.

Limited interests in property include all the following EXCEPT:

Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?