American College HS-330 Fundamentals of Estate Planning Test HS-330 Exam Questions in PDF

Free American College HS-330 Dumps Questions (page: 6)

Which of the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship is correct?

  1. This form of ownership is limited to real property.
  2. Nonqualified joint tenants may have unequal interests in the property.
  3. Upon the death of a joint tenant, the surviving joint tenant receives the decedent's interest by operation of law.
  4. Qualified joint tenancies cannot be severed without mutual consent.

Answer(s): C



Which of the following statements concerning the methods of valuing a closely held business for federal estate tax purposes is (are) correct?

1. The capitalization-of-adjusted-earnings method uses a capitalization rate that varies inversely with the degree of risk and rate of return.
2. The adjusted-book value method involves adjusting the asset components of a business to an approximate fair market value for each component.

  1. Both 1 and 2
  2. 1 only
  3. 2 only
  4. Neither 1 nor 2

Answer(s): A



Alan, a widower, is a retired executive with substantial assets. He wishes to provide for the financial security of his two grandchildren since their father, Alan's son, has always managed money poorly. This year Alan would like each grandchild to receive a substantial gift. Which of the following statements concerning the generation-skipping transfer tax (GSTT) on these gifts is (are) correct?

1. Federal estate or gift tax will not be imposed if the gift is otherwise subject to the GSTT.
2. Assuming no prior gifts, Alan can gift a cumulative total of (not including the annual exclusion) $1.5 million to his grandchildren without the imposition of the GSTT.

  1. 2 only
  2. Neither 1 nor 2
  3. Both 1 and 2
  4. 1 only

Answer(s): A



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.

  1. 2 only
  2. Both 1 and 2
  3. Neither 1 nor2
  4. 1 only

Answer(s): C



Examples of terminable interests that are nondeductible for the federal estate tax marital deduction include which of the following?

1. A property interest that would pass to someone else if the surviving spouse remarries
2. A life estate in property that would pass to another person at the death of the surviving spouse

  1. Both 1 and 2
  2. 1 only
  3. Neither 1 nor 2
  4. 2 only

Answer(s): A



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