American College HS330 Exam (page: 11)
American College Fundamentals of Estate Planning Test
Updated on: 15-Feb-2026

Viewing Page 11 of 81

Which of the following statements concerning the inclusion in a decedent-employee's gross estate of a lump-sum distribution from a qualified retirement plan to a beneficiary other than the employee's estate is (are) correct?

1. Lump-sum distributions of payments attributable to the employer's contributions are excluded from the gross estate.
2. Lump-sum distributions of payments attributable to the decedent-employee's contributions are excluded from the gross estate.

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

Answer(s): A



Which of the following statements concerning charitable guaranteed annuity interests is (are) correct?

1. To qualify for an estate tax charitable deduction, guaranteed annuity interests must be made in trust.
2. These interests refer to the charity right to receive a determinable income amount at least annually for a specific term or life (lives) or one or more noncharitable beneficiaries.

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

Answer(s): C



The Decedent, T, died this year. The facts concerning T estate are:
* Gross estate $2,700,000
* Marital deduction 900,000
* Charitable deduction 110,000
* Gifts made after 1976 130,000
* State death taxes payable 165,000

What is T taxable estate?

  1. $1,395,000
  2. $1,285,000
  3. $1,655,000
  4. $1,525,000

Answer(s): D



All the following are grounds for contesting a will EXCEPT:

  1. The testator executed a later valid will.
  2. The instrument is a forgery.
  3. The widow was bequeathed less than her intestate share.
  4. The testator did not have testamentary capacity.

Answer(s): C



A taxable gift has been made in which of the following situations?
1. A father manages his disabled son's business for a year without compensation since a replacement manager would have cost $25,000.
2. A father verbally promises his 21-year-old daughter that he will give her his antique Mercedes when she graduates from college next year.

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

Answer(s): B



Viewing Page 11 of 81



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