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American College HS330 Exam Syllabus Topics:

American College Fundamentals of Estate Planning test Sample Questions:

1. Which of the following statements concerning a general power of appointment is (are) correct?
1.A general power of appointment is a power over property so broad that it approaches actual ownership or control over the property subject to the power.
2.The property subject to a general power of appointment will be includible in the gross estate of the holder of the power if held until death.

A) 2 only
B) Both 1 and 2
C) Neither 1 nor 2
D) 1 only

2. All the following statements concerning an estate for a term of years are correct EXCEPT:

A) An interest may extend beyond the lifetime of the grantor.
B) The tenant has the right to possess the property during the term of his interest.
C) It is an interest in property established for a specific duration.
D) The tenant may transfer the property at the end of the term of his interest.

3. A wealthy individual might consider selling a substantially appreciated property interest in an installment sale for which of the following reasons?
1.To spread the taxable gain inherent in the property over the period of the installments
2.To provide a buyer who lacks the requisite funds for a lump-sum purchase with the ability to finance the acquisition

A) 2 only
B) Both 1 and 2
C) Neither 1 nor 2
D) 1 only

4. Ignoring the annual per-donee exclusion, which of the following transfers is a gift for federal gift tax purposes?

A) A father promises to buy his daughter a condominium when she finishes college.
B) A grandmother pays her grandson's $30,000 tuition at an Ivy League university.
C) An individual gratuitously performs valuable services for the benefit of a close friend.
D) A creditor cancels the promissory note of a recently unemployed friend as a charitable gesture.

5. All the following are grounds for contesting a will EXCEPT:

A) The instrument is a forgery.
B) The widow was bequeathed less than her intestate share.
C) The testator executed a later valid will.
D) The testator did not have testamentary capacity.

Solutions: