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  1. Home
  2. American College
  3. HS330

American College HS330 Exam (page: 1)
American College Fundamentals of Estate Planning Test
Updated on: 31-Mar-2026

Viewing Page 1 of 81
HS330 PDF 400 Questions

Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following?

1. A shift in trust situs is desirable because of changes in law.
2. The beneficiary has moved his or her residence to a distant state.

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

Answer(s): C



In which of the following situations will the grantor be taxed on income from trust property.

1. The grantor of a trust gives one of the trust beneficiaries the right to add or delete beneficiaries.
2. An adverse party to the grantor holds the power to determine the timing of trust distributions to the beneficiaries.

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

Answer(s): D



The following are facts concerning a decedent's estate:

* Taxable estate $1,800,000
* Pre-1977 taxable gifts 100,000
* Post-1976 adjusted taxable gifts 150,000
* Post-1976 gifts made to a qualified charity 200,000

The tentative tax base of this estate is

  1. $1,800,000
  2. $1,950,000
  3. $1,650,000
  4. $2,150,000

Answer(s): B



Items that are deductions from a decedent's gross estate in determining his adjusted gross estate include which of the following?

1. Foreign death taxes
2. State death taxes

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

Answer(s): A



All the following trust provisions avoid causing the inclusion of an irrevocable life insurance trust in an insured's gross estate EXCEPT

  1. a trustee's power to pay estate expenses
  2. a trust beneficiary's power to withdraw contributions to the trust
  3. a trustee's power to loan assets to the estate at the trustee's discretion
  4. a trustee's power to purchase assets from the estate at the trustee's discretion

Answer(s): A



Viewing Page 1 of 81



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