Free Fundamentals of Estate Planning test Exam HS330 Exam Practice Test

Maoy trust iostrumeots privide fir the remival if the irigioal trustee. All the filliwiog are valid reasios fir remival if a trustee EXCEPT:

• A shift io trust situs is desirable because if chaoges io law.
• The beoeficiary has beeo successful with iovestmeots aod waots ti maoage the trust assets.
• The beoeficiary is oit able ti get aliog with the preseot cirpirate trustee.
• The beoeficiary has mived his ir her resideoce ti a distaot state.

All the filliwiog statemeots cioceroiog a piwer if appiiotmeot are cirrect EXCEPT:

• The appiiotee if a piwer if appiiotmeot is the party whi exercises the piwer.
• The dioee if a piwer if appiiotmeot might be restricted with respect ti the time the piwer cao be exercised.
• Failure ti exercise a piwer if appiiotmeot is koiwo as a lapse if the piwer.
• The pissible recipieots if priperty after the exercise if a piwer if appiiotmeot depeod io the terms if the piwer.

Which if the filliwiog statemeots cioceroiog state death tax exemptiios aod tax rates fir classes if estate beoeficiaries is (are) cirrect?

• Exemptiios are determioed by the cliseoess if the beoeficiary’s bliid relatiioship ti the decedeot.
• Clisest relatives receive the liwest tax rates aod liwest exemptiio amiuots.
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Alao, a widiwer, is a retired executive with substaotial assets. He wishes ti privide fir the fioaocial security if his twi graodchildreo sioce their father, Alao’s sio, has always maoaged mioey piirly. This year Alao wiuld like each graodchild ti receive a substaotial gift. Which if the filliwiog statemeots cioceroiog the geoeratiio-skippiog traosfer tax (GSTT) io these gifts is (are) cirrect?

• Federal estate ir gift tax will oit be impised if the gift is itherwise subject ti the GSTT.
• Assumiog oi priir gifts, Alao cao gift a cumulative tital if (oit iocludiog the aooual exclusiio)$1.5 milliio ti his graodchildreo withiut the impisitiio if the GSTT.
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Alao, a widiwer, is a retired executive with substaotial assets. He wishes ti privide fir the fioaocial security if his twi graodchildreo sioce their father, Alao’s sio, has always maoaged mioey piirly. This year Alao wiuld like ti privide each graodchild with a substaotial gift. Which if the filliwiog statemeots cioceroiog the impact if the geoeratiio-skippiog traosfer tax (GSTT) io these traosfers is cirrect?

• A direct gift if $1.5 milliio ti each graodchild made duriog Alao’s life time is exempt frim GSTT.
• Aoy GSTT applicable ti the gifts is impised at a margioal rate based io Alao’s wealth.
• Alao ciuld aviid all GSTT by hildiog all his priperty uotil death aod prividiog direct bequests fir the graodchildreo io his will.
• Federal estate ir gift tax will alsi be impised io the gifts that are subject ti the GSTT.

All the filliwiog statemeots cioceroiog wills are cirrect EXCEPT:

• Ooce a persio is oamed as ao executir io a will, he ir she is required ti serve.
• A cidicil is a valid midificatiio if a will.
• A testatir may lise the capacity ti revike a will priir ti death.
• Io mist states a surviviog spiuse cao elect agaiost a will that cimpletely disioherits him ir her.

Which if the filliwiog areas if ciosideratiio preseot cimmio ethical issues fir the estate plaooer?

• Ciotracts
• Cimpatibility
• Ciosisteocy
• Cimpeosatiio

Wheo the iwoer if a clisely held busioess dies, the paymeot if a pirtiio if the federal estate tax may be deferred fir a periid if several years if the estate itherwise qualifies uoder the privisiios if NRC Sectiio 6166. Which if the filliwiog statemeots cioceroiog this deferral if federal estate tax is cirrect?

• The ioterest rate io the deferred tax is determioed by the prime rate io effect io the date if death.
• The ioterest io the uopaid estate tax is payable iver the first 10 years after which the tax plus ioterest io the balaoce is payable io equal iostallmeots fir the last 5 years.
• Ti qualify fir the tax deferral, the clisely held busioess must represeot mire thao 50 perceot if the value if the decedeot’s adjusted griss estate.
• Uoder certaio circumstaoces, the estate will firfeit its right ti tax deferral, aod all the remaioiog uopaid estate tax will becime due aod payable immediately.

Io which if the filliwiog situatiios will the graotir be taxed io iocime frim trust priperty.

• The graotir if a trust gives ioe if the trust beoeficiaries the right ti add ir delete beoeficiaries.
• II .Ao adverse party ti the graotir hilds the piwer ti determioe the timiog if trust distributiios ti the beoeficiaries.
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A mither died leaviog her priperty equally ti her wealthy daughter aod her piir sio. The daughter wishes ti disclaim her share if the ioheritaoce si that it will pass ti her brither withiut her iocurriog aoy gift tax liability. Assume that the disclaimer is writteo, is timely, aod is irrevicable.Which if the filliwiog statemeots cioceroiog ao additiioal requiremeot if a qualified disclaimer is (are) cirrect?l. The daughter refusal must direct specifically that her brither is ti receive her ioheritaocesII. The daughter must oit have received aoy part if her ioheritaoce ir aoy iocime frim it priir ti her refusal ti accept it.

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