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American College HS330 real answers - Fundamentals of Estate Planning test

HS330
  • Exam Code: HS330
  • Exam Name: Fundamentals of Estate Planning test
  • Updated: Jul 06, 2025
  • Q & A: 400 Questions and Answers
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American College Fundamentals of Estate Planning test Sample Questions:

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


2. A father and son have been farming land owned by the father for the past 12 years. Just prior to his death, the father was offered $900,000 for his farm because of its possible use as a shopping center. The son would like to continue to farm the land if it can be included in his father's estate at its current use value. Additional facts are:
1.Average annual gross rentals from nearby farms of similar acreage are $36,000.
2.Average annual state and local real estate taxes on the farm are $4,000.
3.The interest rate for loans from the Federal Land Bank is 8 percent.
For federal estate tax purposes, the farm method valuation formula would result in a current use value for the farm of

A) $300,000
B) $600,000
C) $500,000
D) $400,000


3. Which of the following statements concerning antenuptial agreements is (are) correct?
1.They are frequently used prior to second marriages.
2.They can affect a surviving spouse's right to receive an intestate share of a deceased spouse's estate.

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


4. Examples of terminable interests that are nondeductible for the federal estate tax marital deduction include which of the following?
1.A property interest that would pass to someone else if the surviving spouse remarries
2.A life estate in property that would pass to another person at the death of the surviving spouse

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


5. Many trust instruments provide for the removal of the original trustee. Valid reasons for removing the original trustee include which of the following?
1.A shift in trust situs is desirable because of changes in law.
2.The beneficiary has moved his or her residence to a distant state.

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


Solutions:

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

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