Question No. 1

Which of the following statements concerning a power of appointment is (are) correct?

l. A power of appointment can be designed to restrict the donee's right to appoint the property in favor of a specific class of recipients.

ll. A power of appointment can be designed to restrict the time period during which the donee may exercise the power.

Al only

BII only

CBoth l and II

DNeither I nor II

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Correct Answer: C

Question No. 2

All the following items of property will be included in a decedent's gross estate for federal estate tax purposes EXCEPT:

Athe value of property subject to a general power of appointment that the decedent possessed at death

Bthe value of all gratuitous life time transfers of property made within 3 years of death

Cthe value of a gratuitous life time transfer in which the decedent retained the right for life to receive the income from the property

Dthe value of a gratuitous lifetime transfer in which the decedent retained a reversionary interest on the date of death worth more than 5 percent of the value of the property and which the donee must survive the decedent to possess

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Correct Answer: B

Question No. 3

All the following statements concerning property ownership by a married couple residing in a community-property state are correct EXCEPT:

AAll property that is not separate property is community property.

BCommunity property loses its identity when a community-property couple moves to a common-law state.

CProperty inherited during the marriage is the separate property of the spouse who inherited it.

DIncome earned by one spouse becomes community property.

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Correct Answer: B

Question No. 4

Non tax benefits of life time gifts include all the following EXCEPT to:

Aavoid claims of creditors evidenced by liens

Breduce probate and administrative costs

Cobtain privacy that is not possible to obtain through testamentary transfers

Dprovide for the education of the donee

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Correct Answer: A

Question No. 5

All the following are grounds for contesting a will EXCEPT:

AThe instrument is a forgery.

BThe testator executed a later valid will.

CThe testator did not have testamentary capacity.

DThe widow was bequeathed less than her intestate share.

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Correct Answer: D

Free American College HS330 Exam Actual Questions

The questions for HS330 were last updated On Nov 3, 2024