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All the following statements concerning a power of appointment are correct EXCEPT:

The donee of a power of appointment might be restricted with respect to the time the power can be exercised.
The appointee of a power of appointment is the party who exercises the power.
Failure to exercise a power of appointment is known as a lapse of the power.
The possible recipients of property after the exercise of a power of appointment depend on the terms of the power.

Answer(s): B

The failure of an individual to have a will can result in all the following EXCEPT:

A surviving spouse receives only his or her elective share.
Unnecessary death taxes may be imposed.
Testamentary gifts to charity cannot be made.
The decedent's state of domicile might receive the property left by the decedent.

Answer(s): A

A father is considering giving his daughter a gift. For tax planning purposes, the father should give his daughter which of the following?

Raw land that cost him $10,000, its present fair market value, but which has a substantial potential for appreciation
Real estate that cost him $40,000 and is now worth $120,000, subject toa $110,000 mortgage
Stock that cost him $10,000 and which now has a fair market value of $20,000
A bond that cost him $15,000 and is now worth $10,000

Answer(s): A

All the following are proper actions on the part of a trustee EXCEPT

placing cash from the sale of securities in a non-interest bearing checking account for an extended period of time
investing trust assets in speculative securities in accordance with the provisions of the trust instrument
purchasing securities in good faith from a third party just prior to a sharp decrease in their value
purchasing assets for personal use from the trust at their fair market value with the approval of all beneficiaries

Answer(s): A

All the following trust provisions avoid causing the inclusion of an irrevocable life insurance trust in an insured's gross estate EXCEPT

a trust beneficiary's power to withdraw contributions to the trust
a trustee's power to loan assets to the estate at the trustee's discretion
a trustee's power to pay estate expenses
a trustee's power to purchase assets from the estate at the trustee's discretion

Answer(s): C

Free HS-330 Exam Braindumps HS-330 Fundamentals of Estate Planning Test Questions 36–40 (page: 9)