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American College HS330 guide torrent - Fundamentals of Estate Planning test

Updated: May 26, 2026

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HS330 guide torrent
  • Exam Code: HS330
  • Exam Name: Fundamentals of Estate Planning test

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American College Fundamentals of Estate Planning test Sample Questions:

1. All the following statements concerning a complex trust are correct EXCEPT:

A) A complex trust may make gifts to charity.
B) Beneficiaries must receive all distributable net income in the year received by the trust.
C) The trustee may make distributions of principal to trust beneficiaries.
D) Beneficiaries are taxed on their share of distributable net income when received by them.


2. The owner of a successful business wishes to sell it to his employee-son so that he can retire. The business is worth substantially more than the owner's basis. The owner and the employee-son have agreed to an installment sale. Which of the following statements concerning this sale is (are) correct?
1.The present value of any unpaid installments remaining at the owner's death is includible in his estate.
2.Installment payments are received free of income tax until the seller recovers his basis.

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


3. A man recently died with only probate assets. Under the terms of his will, he left his entire probate estate outright to his wife. The following are relevant facts about the estate:
*Gross estate $2,000,000
*Estate administration expenses 50,000
*Debts of decedent 200,000
*Allowable funeral expenses 5,000
The amount of the allowable marital deduction is

A) $1,750,000
B) $1,795,000
C) $1,745,000
D) $1,800,000


4. A father is considering giving his daughter a gift. For tax planning purposes, the father should give his daughter which of the following?

A) Securities that cost him $10,000, its present fair market value, but which has a substantial potential for appreciation
B) Raw land that cost him $1,000 and which now has a fair market value of $14,000
C) Real estate that cost him $30,000 and is now worth $110,000, subject to a $100,000 mortgage
D) A bond that cost him $25,000 and is now worth $10,000


5. A wife owns a $100,000 life insurance policy on her husband's life. She has named her son the revocable beneficiary. Which of the following statements concerning the life insurance is (are) correct?
1.At the husband's death, the interpolated terminal reserve of the policy is a gift to the son.
2.The annual increase in the cash value is a gift to the son.

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


Solutions:

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

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