Real American College HS330 practice exam questions for easy pass!
Last Updated: Aug 04, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Gift Tax System | 20% | - Taxable gifts and filing requirements - Exclusions, exemptions, and valuation rules - Gift tax calculation and strategies |
| Topic 2: Estate Planning Process & Legal Foundations | 20% | - Wills, powers of attorney, and advance directives - Property ownership forms and titling - Probate process and non-probate transfers - Objectives and ethical considerations |
| Topic 3: Trusts & Fiduciary Arrangements | 20% | - Trust income taxation - Specialized trust structures - Generation-skipping transfer tax (GSTT) - Revocable and irrevocable trusts |
| Topic 4: Federal Estate Tax System | 25% | - Credits and tax computation - State death taxes and basis adjustments - Gross estate inclusion rules - Marital and charitable deductions |
| Topic 5: Advanced Planning Strategies | 15% | - Charitable giving techniques - Business succession planning & buy-sell agreements - Planning for incapacity and special needs - Life insurance in estate planning |
1. 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) $140,000
B) $220,000
C) 0
D) $120,000
2. Believing that his death was imminent, a widower gave his son some real estate two years ago, and filed a timely gift tax return. The widower died on January 1st of this year. Additional facts are: Widower's basis in the real estate $200,000 Value of real estate when gifted 510,000 Value of real estate on date of death 1,000,000 Amount of gift tax paid by widower 159,500
Assuming the widower made no additional gifts to his son, all the following statements concerning this situation are correct EXCEPT:
A) The son's income tax basis in the real estate is $1,000,000.
B) The widower recognized no capital gain for income tax purposes at the time the gift was made.
C) The gift of the real estate is included in the calculation of the widower's federal estate tax as an adjusted taxable gift.
D) The gift tax paid is brought back into the widower's gross estate at $159,500.
3. 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) Neither 1 nor 2
B) Both 1 and 2
C) 1 only
D) 2 only
4. Which of the following members of the estate planning team is responsible for assuring that the client's intentions are expressed in documents that will carry out the final plan?
A) The life underwriter
B) The lawyer
C) The investment counselor
D) The trust officer
5. A married man has two adult sons. His entire estate is in excess of $1,500,000 and consists entirely of probate assets. He wants to make certain that if he predeceases his wife she will receive all estate income as long as she lives, and the assets remaining at her death will pass equally to their two sons. He wants to pass all assets to this wife and sons as free of federal estate taxes as possible. To best accomplish these objectives, the man should include which of the following estate plans in his will?
A) Establish a QTIP trust for half his estate and bequeath the remainder to his wife
B) Establish a marital deduction trust with a general power of appointment for half his estate and place the remainder in a QTIP trust
C) Establish a bypass trust equal to the applicable exclusion amount and place the remainder of his estate in a QTIP trust
D) Establish a QTIP trust for his entire estate
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |
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