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American College HS-330 Exam
HS-330 Fundamentals of Estate Planning Test (Page 15 )

Updated On: 9-Feb-2026
Page 15 of 81
PDF with 400 Questions

Which of the following statements concerning the taxation of estates and trusts is (are) correct?
1. They are taxed similarly to partnership entities.
2. They are taxed on distributable net income (DNI) that is retained.

  1. 1 only
  2. Both 1 and 2
  3. Neither 1 nor 2
  4. 2 only

Answer(s): D



All the following assets owned by a decedent pass by operation of law or by contract EXCEPT

  1. death benefits of a pension plan payable to a named beneficiary
  2. life insurance payable to a named beneficiary
  3. probate assets passing under the terms of a valid will
  4. jointly owned real estate passing to the surviving joint tenant

Answer(s): C



A woman is the income beneficiary of an irrevocable trust. All the following powers held by her will cause all the assets in the trust to be includible in her gross estate for federal estate tax purposes EXCEPT

  1. the testamentary special or limited power to direct the trustee to distribute trust assets to her children
  2. the testamentary power to direct the trustee to use trust assets to pay her estate taxes
  3. the power to direct the trustee to distribute trust corpus to her
  4. the testamentary power to direct the trustee to pay trust assets to her estate

Answer(s): A



All the following statements concerning guardians for minors are correct EXCEPT:

  1. A guardian has equitable title to the property he administers for the minor.
  2. A guardian named in a deceased parent's will is not necessarily binding on the court.
  3. A guardian of the person of a minor may not necessarily be the guardian of the minor's property.
  4. A special guardian can be appointed by the court to protect a minor's rights in a legal proceeding.

Answer(s): A



Which of the following are ways of passing property from a deceased spouse to a surviving spouse so that the property will qualify for the federal estate tax marital deduction?
1. When the surviving spouse receives the property by electing to take against the deceased spouse's will
2. When the surviving spouse receives the property as a consequence of the qualified disclaimer of another beneficiary

  1. Both 1 and 2
  2. Neither 1 nor 2
  3. 1 only
  4. 2 only

Answer(s): A






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