Exam Code: HS330
Exam Name: Fundamentals of Estate Planning test
Certification Provider: American College
Corresponding Certification: American College Certification
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American College HS330 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Federal Estate Tax System25%- Marital and charitable deductions
- Credits and tax computation
- State death taxes and basis adjustments
- Gross estate inclusion rules
Topic 2: Advanced Planning Strategies15%- Business succession planning & buy-sell agreements
- Life insurance in estate planning
- Planning for incapacity and special needs
- Charitable giving techniques
Topic 3: Estate Planning Process & Legal Foundations20%- Wills, powers of attorney, and advance directives
- Property ownership forms and titling
- Objectives and ethical considerations
- Probate process and non-probate transfers
Topic 4: Federal Gift Tax System20%- Gift tax calculation and strategies
- Exclusions, exemptions, and valuation rules
- Taxable gifts and filing requirements
Topic 5: Trusts & Fiduciary Arrangements20%- Specialized trust structures
- Trust income taxation
- Generation-skipping transfer tax (GSTT)
- Revocable and irrevocable trusts

American College Fundamentals of Estate Planning test Sample Questions:

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. Both 1 and 2
  • B. Neither 1 nor 2
  • C. 2 only
  • D. 1 only
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

In addition to substantial probate assets, a married man with two minor children has a $1,000,000 ordinary life insurance policy payable to his estate. He wants to make certain that if he predeceases his wife the death proceeds will be available to provide income for his wife during her lifetime and to provide for their two children after her death. He would like the policy and/or its death proceeds to be as free of federal gift and estate taxes as possible with respect to both him and his wife. Which of the following courses of action would best accomplish these objectives?

  • A. Designate his wife as beneficiary and she will establish a testamentary trust in her will to receive the proceeds at her subsequent death
  • B. Assign the policy to an irrevocable intervivos trust with five and five powers and designate the trustee to receive the death proceeds
  • C. Establish a revocable intervivos trust and designate the trustee to receive death proceeds
  • D. Assign the policy to his wife who will establish a revocable intervivos trust to receive the death proceeds
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Which of the following statements concerning federal gift, estate, and income taxes is (are) correct?
1.A taxable gift of income-producing property to a donee automatically transfers income tax liability on the gifted property to the donee.
2.Once part or all of a taxable gift is made to a trust, the property can no longer be includible in the donor gross estate.

  • A. Both 1 and 2
  • B. Neither 1 nor 2
  • C. 2 only
  • D. 1 only
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

The federal gift tax is

  • A. a flat tax based on gifts made in any taxable year
  • B. a tax on the right of the donor to make the gift
  • C. levied directly on the gift
  • D. a tax on the right of thedonee to receive the property
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Which of the following items of property will be included in a decedent's gross estate for federal estate tax purposes?
1.The value of property subject to a general power of appointment that the decedent possessed at death
2.The value of all gratuitous lifetime transfers of property made within 3 years of death

  • A. Both 1 and 2
  • B. Neither 1 nor 2
  • C. 2 only
  • D. 1 only
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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