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American College HS330 Actual Tests : Fundamentals of Estate Planning test

HS330 actual test
  • Exam Code: HS330
  • Exam Name: Fundamentals of Estate Planning test
  • Updated: Jun 15, 2026
  • Q & A: 400 Questions and Answers
  • PDF Demo
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American College Fundamentals of Estate Planning test Sample Questions:

1. A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT

A) the power to direct the trustee to distribute trust corpus to her
B) the testamentary special or limited power to direct the trustee to distribute trust assets to her children
C) the testamentary power to direct the trustee to pay trust assets to her estate
D) the testamentary power to direct the trustee to use trust assets to pay her estate taxes


2. 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) 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.
D) He must not have received any part of his inheritance or any income from it prior to his refusal to accept it.


3. Which of the following statements concerning pooled-income funds is (are) correct?
1.The fund contains commingled donations from many sources.
2.A decedent donation purchases units in the fund which generate income that is paid at least annually to a charity.

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


4. All the following statements concerning transfers at death under a will are correct EXCEPT:

A) If during lifetime a decedent disposed of property that was the subject of a specific bequest,ademption occurs.
B) The most appropriate way to sever a joint tenancy with right of survivorship is for the joint tenant-decedent to make a specific bequest of the property under a will.
C) It is common for a will to contain a clause that exempts the executor from posting bond.
D) Specific bequests of a decedent's property are satisfied prior to distribution of the decedent's residuary estate.


5. When the owner of a closely held business dies, the payment of a portion of the federal estate tax may be deferred for a period of several years if the estate otherwise qualifies under the provisions of IRC Section 6166. Which of the following statements concerning this deferral of federal estate tax is correct?

A) To qualify for the tax deferral, the closely held business must represent more than 50 percent of the value of the decedent's adjusted gross estate.
B) The interest on the unpaid estate tax is payable over the first 10 years, after which the tax plus interest on the balance is payable in equal installments for the last 5 years.
C) The interest rate on the deferred tax is determined by the prime rate in effect on the date of death.
D) Under certain circumstances, the estate will forfeit its right to tax deferral, and all the remaining unpaid estate tax will become due and payable immediately.


Solutions:

Question # 1
Answer: B
Question # 2
Answer: A
Question # 3
Answer: B
Question # 4
Answer: B
Question # 5
Answer: D

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