Free Cheat-test Samples and Demo Questions Download
Adobe exams Adobe
Apple exams Apple
Avaya exams Avaya
Check Point exams Check Point
Cisco exams Cisco
Citrix exams Citrix
CIW exams CIW
CompTIA exams CompTIA
CWNP exams CWNP
EC-Council exams EC-Council
EMC exams EMC
Exin exams Exin
Fortinet exams Fortinet
GIAC exams GIAC
Hitachi exams Hitachi
HP exams HP
IBM exams IBM
Isaca exams Isaca
ISC exams ISC
ISEB exams ISEB
Juniper exams Juniper
LPI exams LPI
McAfee exams McAfee
Microsoft exams Microsoft
Oracle exams Oracle
PMI exams PMI
Riverbed exams Riverbed
SNIA exams SAP
Sun exams SAS
Symantec exams Symantec
VMware exams VMware
All certification exams

American College HS330 Exam - Cheat-Test.com

Free HS330 Sample Questions:

1. A widower dies leaving a net probate estate of $300,000. At the time of his death, his descendants are as follows:
A son, Joe, who has no children;
A deceased daughter, Mary, whose two children, Irene and Sally, survive; and
A daughter, Anne, who has one child, Harry
Assuming that the widower's will provides for the distribution of his assets in equal shares to his children, per stirpes, which of the following correctly states the amounts each descendant will receive?
A. $100,000 to Joe, $50,000 to Irene, $50,000 to Sally, and $100,000 to Anne
B. $100,000 to Joe, $50,000 to Irene, $50,000 to Sally, $50,000 to Anne, and $50,000 to Harry
C. $75,000 to Joe, $75,000 to Irene, $75,000 to Sally, and $75,000 to Anne
D. $60,000 to Joe, $60,000 to Irene, $60,000 to Sally, $60,000 to Anne, and $60,000 to Harry
Answer: A

2. All the following transfers are subject to the generation-skipping transfer tax (GSTT) EXCEPT:
A. A direct cash gift of $50,000 from a grandparent to his grandchild if such grandchild's parents are still alive.
B. A direct cash payment of $28,000 from a grandparent to a private prep school to cover the tuition costs for her grandchild.
C. A distribution to a grandchild from a sprinkle trust created by a grandparent to benefit both skip and non-skip beneficiaries.
D. A termination of a trust at the death of the nonskip life income beneficiary with the remainder distributed solely to skip persons.
Answer: B

3. Nontax benefits of lifetime gifts include all the following EXCEPT to
A. avoid claims of creditors evidenced by liens
B. reduce probate and administrative costs
C. obtain privacy that is not possible to obtain through testamentary transfers
D. provide for the education of the donee
Answer: A

4. To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:
A. Was the transferred property real property or personal property?
B. Was the value of the gift property in excess of the annual per-donee exclusion?
C. Did the donor absolutely, irrevocably, and currently divest himself of dominion and control over the property?
D. Was the property transferred for less than an adequate and full consideration in money or money's worth?
Answer: A

5. When the owner of a closely held business dies, the payment of a portion of the federal estate tax may be deferred for a period of several years if the estate otherwise qualifies under the provisions of IRC Section 6166. Which of the following statements concerning this deferral of federal estate tax is correct?
A. The interest rate on the deferred tax is determined by the prime rate in effect on the date of death.
B. The interest on the unpaid estate tax is payable over the first 10 years, after which the tax plus interest on the balance is payable in equal installments for the last 5 years.
C. To qualify for the tax deferral, the closely held business must represent more than 50 percent of the value of the decedent's adjusted gross estate.
D. Under certain circumstances, the estate will forfeit its right to tax deferral, and all the remaining unpaid estate tax will become due and payable immediately.
Answer: D

6. Which of the following types of partial interests in property may be allowed a charitable deduction for estate tax purposes?
I. A remainder interest in the donor vacation home
II. A testamentary gift of a percentage of a decedent entire interest in property held in trust
A. I only
B. II only
C. Both I and II
D. Neither I nor II
Answer: A

7. All the following statements concerning the generation-skipping transfer tax (GSTT) are correct EXCEPT:
A. Tuition payments made by a grandparent directly to a university for a grandchild's education are exempt from GSTT.
B. Direct skip gifts by a grandparent of up to $11,000 can be made to each grandchild without GSTT liability due to an annual exclusion.
C. Each individual has an aggregate $1.5 million exemption against GSTT.
D. The liability for GSTT falls upon the donee regardless of the type of transfer.
Answer: D

8. A man established and funded an irrevocable trust and named a bank as trustee. All income from the trust is to be paid to his four grandchildren. Which of the following powers retained by the grantor of the trust will cause all or a portion of the trust assets to be includible in his gross estate for federal estate tax purposes?
I. The power to add principal to the trust
II. The power to vary the amounts of trust income paid to each grandchild
A. I only
B. II only
C. Both I and II
D. Neither I nor II
Answer: B

9. Which of the following statements concerning the estate tax marital deduction is correct?
A. The marital deduction available to a decedent in a common-law state is equal to one half the adjusted gross estate.
B. The marital deduction available to a decedent in a community-property state is equal to the total amount of community property.
C. The marital deduction available to a decedent in a common-law state is equal to the net amount of qualifying property passing to the surviving spouse.
D. The marital deduction available to a decedent in a common-law state is limited to a maximum of $1 million.
Answer: C

10. When the owner of a closely held business dies, the payment of a portion of the federal estate tax may be deferred for a period of several years if the estate otherwise qualifies under the provisions of IRC Section 6166.
Which of the following statements concerning this deferral of federal estate tax is correct?
A. The interest rate on the deferred tax is determined by the prime rate in effect on the date of death.
B. The interest on the unpaid estate tax is payable over the first 10 years, after which the tax plus interest on the balance is payable in equal installments for the last 5 years.
C. To qualify for the tax deferral, the closely held business must represent more than 50 percent of the value of the decedent's adjusted gross estate.
D. Under certain circumstances, the estate will forfeit its right to tax deferral, and all the remaining unpaid estate tax will become due and payable immediately.
Answer: D


© 2014 Cheat-Test.com, All Rights Reserved