American College Fundamentals of Estate Planning test - HS330 FREE EXAM DUMPS QUESTIONS & ANSWERS

To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:

Which of the following are ways of passing property from a deceased spouse to a surviving spouse so that the property will qualify for the federal estate tax marital deduction?
1.When the surviving spouse receives the property by electing to take against the deceased spouse's will
2.When the surviving spouse receives the property as a consequence of the qualified disclaimer of another beneficiary

A widower dies leaving a net probate estate of $300,000. At the time of his death, his descendants are as follows:
A son, Joe, who has no children; A deceased daughter, Mary, whose two children, Irene and Sally, survive; and
A daughter, Anne, who has one child, Harry
Assuming that the widower's will provides for the distribution of his assets in equal shares to his children, per stirpes, which of the following correctly states the amounts each descendant will receive?

A married man is the sole owner of a small business with an estate tax value of $500,000. In addition, he and his wife own an office building as joint tenants with right of survivorship which they purchased five years ago. The building has an estate tax value of $1,500,000. They are considering dissolving the joint tenancy and retitling the building in the name of the husband as sole owner. All the following statements concerning this action are correct EXCEPT:

Mr. Barlow died early this year. Under the terms of his will he left all his real estate and tangible personal property to his son. All the remainder of his probate estate was left to his wife, Mrs. Barlow. The following is a list of Mr. Barlow's probate assets and their fair market values at the time of his death:
*Commercial real estate $150,000
*Furniture and fixtures 75,000
*Listed common stock 300,000
*Other securities 200,000
In addition, Mr. Barlow also owned a $100,000 life insurance policy on his life with Mrs. Barlow designated as beneficiary. Based on this information, what is the amount of property in Mr. Barlow's estate qualifying for the federal estate tax marital deduction?

A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year while still living in the house. The following are relevant facts: The father bought the property in 1980 for $130,000. The fair market value of the property when the gift was made in 1990 was $150,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $220,000. The daughter sold the property 3 months after her father's death for $220,000. She had a gain of

A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint of providing federal income, gift, and estate tax savings, which of the following would be a suitable trustee?
1.The grantor of the trust
2.The grantor's 22-year-old son

All the following are characteristics of a buy-sell agreement EXCEPT

Which of the following statements concerning charitable remainder annuity trusts is correct?

On January 1, 2004 a father gave his daughter a $50,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:
Date of issue: July 1, 1992
Premium paid on July 1, 2003 $800 Terminal reserve on July 1, 2003 5,000 Terminal reserve on July 1, 2004 6,000
What is the value of the policy for federal gift tax purposes?

Which of the following statements concerning both the joint tenancy with right of survivorship and the tenancy by the entirety forms of real property ownership is correct?

Having a will enables an individual to do which of the following?
1.Make testamentary bequests to selected charitable organizations
2.Make specific bequests to selected friends