American College HS330 : Fundamentals of Estate Planning test

  • Exam Code: HS330
  • Exam Name: Fundamentals of Estate Planning test
  • Updated: Sep 18, 2026
  • Q & A: 400 Questions and Answers

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American College HS330 Exam Syllabus Topics:

SectionObjectives
Topic 1: Wills and Probate- Wills
  • 1. Types and requirements of valid wills
    • 2. Will execution and amendment
      - Probate process
      • 1. Estate administration
        • 2. Role of executor and courts
          Topic 2: Estate and Gift Taxation- Gift tax rules
          • 1. Annual and lifetime exclusions
            • 2. Taxable gifts and reporting
              - Federal estate tax system
              • 1. Tax calculation principles
                • 2. Exemptions and tax thresholds
                  Topic 3: Introduction to Estate Planning- Purpose and objectives of estate planning
                  • 1. Wealth transfer goals
                    • 2. Family and beneficiary considerations
                      Topic 4: Property Transfer and Liquidity Planning- Non-probate transfers
                      • 1. Joint ownership structures
                        • 2. Beneficiary designations
                          - Estate liquidity strategies
                          • 1. Asset liquidation considerations
                            • 2. Life insurance in estate planning
                              Topic 5: Trusts- Trust fundamentals
                              • 1. Trust parties and responsibilities
                                • 2. Types of trusts (revocable and irrevocable)
                                  - Trust taxation and control
                                  • 1. Asset protection and control strategies
                                    • 2. Tax treatment of trusts

                                      American College Fundamentals of Estate Planning test Sample Questions:

                                      Question #1

                                      Nontax benefits of lifetime gifts include all the following EXCEPT to

                                      • A. obtain privacy that is not possible to obtain through testamentary transfers
                                      • B. reduce probate and administrative costs
                                      • C. avoid claims of creditors evidenced by liens
                                      • D. provide for the education of thedonee
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Question #2

                                      All the following statements concerning an entity-purchase buy-sell agreement for a partnership are correct EXCEPT:

                                      • A. It is the surviving partners who purchase the decedent's business interest so that the partnership can afford to pay the decedent's estate.
                                      • B. The partnership makes payments to the decedent-partner's estate to liquidate the partnership interest held by the estate.
                                      • C. Both the partners and the partnership are parties to the agreement that provides for business continuation.
                                      • D. The partnership, in effect, liquidates the interest held by the decedent-partner's estate.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: A  🗳️

                                      Question #3

                                      Which of the following statements concerning the inclusion in a decedent-employee's gross estate of a lump-sum distribution from a qualified retirement plan to a beneficiary other than the employee's estate is (are) correct?
                                      1.Lump-sum distributions of payments attributable to the employer's contributions are excluded from the gross estate.
                                      2.Lump-sum distributions of payments attributable to the decedent-employee's contributions are excluded from the gross estate.

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

                                      Correct Answer: C  🗳️

                                      Question #4

                                      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?

                                      • A. $50,000
                                      • B. $5,400
                                      • C. $5,900
                                      • D. $5,800
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Question #5

                                      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. Which of the following statements concerning this action is (are) correct?
                                      1.If the husband dies first, it would be easier to qualify his estate for a Section 303 redemption of his business interest.
                                      2.If the husband dies first, the probate costs of his estate could be increased.

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

                                      Correct Answer: B  🗳️

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