American College Fundamentals of Estate Planning test Sample Questions:
1. All the following statements concerning a federal estate tax deduction for a bequest or gift to a qualified charity are correct EXCEPT:
A) The amount of a charitable deduction may not exceed 50 percent of a decedent's adjusted gross estate.
B) A life insurance policy that was assigned to a charity as a gift less than 3 years prior to the insured's death qualifies for a charitable deduction.
C) An estate may deduct the value of the remainder interest in a charitable remainder trust.
D) The amount of a charitable deduction is reduced by any taxes and administrative expenses chargeable against the bequest.
2. All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
A) All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
B) The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
C) In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
D) Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
3. Which of the following statements concerning the gift or estate tax charitable deduction is (are) correct?
1.A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to a noncharitable donee.
2.A decedent-spouse estate may obtain both marital and charitable deductions for interests contributed to a charitable remainder trust when the surviving spouse is the only noncharitable income beneficiary for life.
A) Both 1 and 2
B) 2 only
C) 1 only
D) Neither 1 nor 2
4. Which of the following terms applies to the blending together of separate and community properties of spouses in community-property states?
A) Inception
B) Proration
C) Transmutation
D) Commingling
5. Which of the following acts by a person other than a lawyer is clearly an unauthorized practice of law?
A) A CLU explains to a client how a life insurance policy may solve estate liquidity needs.
B) A CPA designs an estate plan for presentation to a client.
C) A sister drafts a will for her brother using printed forms.
D) A trust officer gives a client advice about the taxation of a trust.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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