American College HS330 Actual Free Exam Questions & Community Discussion

Exam Code/Number: HS330
Exam Name/Title: Fundamentals of Estate Planning test
Certification Provider: American College
Corresponding Certification: American College Certification

Exam Questions: 400
Updated On: Aug 14, 2026

Question #21

A father died leaving his property equally to his wealthy son and his poor daughter. The son wishes to disclaim his share of the inheritance so that it will pass to his sister without his incurring any gift tax liability. In this situation, all the following acts on the part of the son are required EXCEPT:

A. His refusal to accept the inheritance must direct specifically that his sister is to receive it instead.

B. His refusal to accept the inheritance must be in writing.

C. He must not have received any part of his inheritance or any income from it prior to his refusal to accept it.

D. His refusal to accept the inheritance must be received by the executor of his father's estate within 9 months of his father's death.

Discussion 0

Correct Answer: A Vote an answer

Question #22

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

A. Upon the death of a joint tenant, the surviving joint tenant receives the decedent's interest by operation of law.

B. This form of ownership is limited to real property.

C. Nonqualified joint tenants may have unequal interests in the property.

D. Qualified joint tenancies cannot be severed without mutual consent.

Discussion 0

Correct Answer: A Vote an answer

Question #23

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is (are) correct?
1.An annual exclusion against GSTT will shelter gifts by a grandparent to a trust benefitting multiple grandchildren.
2.Tuition payments made directly by a grandparent to a university for a grandchild's education are exempt from GSTT.

A. Both 1 and 2

B. 1 only

C. 2 only

D. Neither 1 nor 2

Discussion 0

Correct Answer: C Vote an answer

Question #24

All the following powers held by the grantor of an irrevocable trust will cause the trust assets to be brought back into the estate of the grantor EXCEPT the power to

A. change the trustremainderpersons

B. add principal to the trust

C. terminate the trust

D. designate who shall enjoy the trust income

Discussion 0

Correct Answer: B Vote an answer

Question #25

All the following statements concerning the ownership of real property as joint tenants with right of survivorship are correct EXCEPT:

A. If the joint tenants are husband and wife, because this is a qualified joint interest, one half the value of the property will be in the estate of the first spouse to die regardless of which spouse contributed to the purchase price.

B. If the joint tenants are brother and sister, no portion of the value of the property will be in the sister's estate if she dies first provided her executor proves that the brother contributed all the funds.

C. If three sisters inherited property as joint tenants with right of survivorship, the entire value of the property will be in the estate of the first sister to die.

D. If the joint tenants are two brothers and each contributed one half the property's purchase price, only one half the property's value will be in the estate of the first brother to die if his executor proves that the other brother contributed half of the purchase price.

Discussion 0

Correct Answer: C Vote an answer

Question #26

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. Both 1 and 2

B. 1 only

C. 2 only

D. Neither 1 nor 2

Discussion 0

Correct Answer: D Vote an answer

Question #27

All the following are conditions that must be met if an otherwise nonqualified terminable interest is to qualify (as QTIP) for the federal estate tax marital deduction EXCEPT:

A. The deceased spouse's executor must make an irrevocable election to have the property includible in the surviving spouse's gross estate.

B. No person can be given the right to direct that the property go to anyone other than the surviving spouse as long as the surviving spouse is alive.

C. The surviving spouse must make a qualified disclaimer to all other property in the deceased spouse's estate within 9 months of death.

D. The surviving spouse must be given a lifetime right to receive all the property's income at least annually.

Discussion 0

Correct Answer: C Vote an answer

Question #28

All the following statements concerning a power of appointment are correct EXCEPT:

A. The possible recipients of property after the exercise of a power of appointment depend on the terms of the power.

B. Failure to exercise a power of appointment is known as a lapse of the power.

C. Thedonee of a power of appointment might be restricted with respect to the time the power can be exercised.

D. The appointee of a power of appointment is the party who exercises the power.

Discussion 0

Correct Answer: D Vote an answer

Question #29

Which of the following provisions is (are) generally common to all buy-sell agreements?
1.Provisions specifying how the purchase price is to be funded.
2.Statement indicating the purpose of the agreement.

A. Both 1 and 2

B. 1 only

C. 2 only

D. Neither 1 nor 2

Discussion 0

Correct Answer: A Vote an answer

Question #30

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?

A. Make her an interest free loan with a principal amount large enough to produce sufficient income for her support when invested in corporate bonds

B. Make her annual gifts of enough interest income from the tax free municipal bonds in his portfolio so that she will be able to support herself

C. Make her a gift of enough corporate bonds from his portfolio so that she will be able to support herself from the interest payments

D. Purchase corporate bonds that pay interest in an amount sufficient for her to support herself and assign the interest payments to her

Discussion 0

Correct Answer: B Vote an answer

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