American College HS330 Exam Collection - Fundamentals of Estate Planning test

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American College HS330 Exam Syllabus Topics:

SectionObjectives
Topic 1: Trusts- Trust taxation and control
  • 1. Asset protection and control strategies
    • 2. Tax treatment of trusts
      - Trust fundamentals
      • 1. Trust parties and responsibilities
        • 2. Types of trusts (revocable and irrevocable)
          Topic 2: Wills and Probate- Wills
          • 1. Will execution and amendment
            • 2. Types and requirements of valid wills
              - Probate process
              • 1. Estate administration
                • 2. Role of executor and courts
                  Topic 3: Estate and Gift Taxation- Gift tax rules
                  • 1. Taxable gifts and reporting
                    • 2. Annual and lifetime exclusions
                      - Federal estate tax system
                      • 1. Tax calculation principles
                        • 2. Exemptions and tax thresholds
                          Topic 4: Introduction to Estate Planning- Purpose and objectives of estate planning
                          • 1. Wealth transfer goals
                            • 2. Family and beneficiary considerations
                              Topic 5: Property Transfer and Liquidity Planning- Non-probate transfers
                              • 1. Beneficiary designations
                                • 2. Joint ownership structures
                                  - Estate liquidity strategies
                                  • 1. Asset liquidation considerations
                                    • 2. Life insurance in estate planning

                                      American College Fundamentals of Estate Planning test Sample Questions:

                                      1. Which of the following statements concerning a grantor-retained annuity trust (GRAT) is correct?

                                      A) The trust is used as a device for shifting income tax on the current trust income to theremainderperson(s).
                                      B) The grantor retains control of the trust property until revocation or death.
                                      C) If the grantor dies before the retained interest term ends, the estate tax benefits are reduced.
                                      D) The transfer of property to the trust becomes a completed gift for gift tax purposes only at the termination of the grantor's retained interest term.


                                      2. 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.

                                      A) 2 only
                                      B) Both 1 and 2
                                      C) Neither 1 nor2
                                      D) 1 only


                                      3. A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

                                      A) Wife $18,000, husband 0
                                      B) Wife 0, husband $18,000
                                      C) Wife $19,000, husband $19,000
                                      D) Wife $9,000, husband $9,000


                                      4. 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) designate who shall enjoy the trust income
                                      B) change the trustremainderpersons
                                      C) terminate the trust
                                      D) add principal to the trust


                                      5. Which of the following statements concerning ownership of property under a tenancy by the entirety is correct?

                                      A) It is a form of property ownership that applies only to personal property.
                                      B) One tenant can freely transfer his or her property interest to a third person.
                                      C) The property will be in the probate estate of the first joint tenant to die.
                                      D) It is a form of property ownership available only to married persons.


                                      Solutions:

                                      Question # 1
                                      Answer: C
                                      Question # 2
                                      Answer: C
                                      Question # 3
                                      Answer: D
                                      Question # 4
                                      Answer: D
                                      Question # 5
                                      Answer: D

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