American College Fundamentals of Estate Planning test HS330 Exam Questions

A father deeded a house as a gift to his daughter in 1990 but retained the right to live in it until his death. He died this year while still living in the house. The following are relevant facts: The father bought the property in 1980 for$130,000. The fair market value of the property when the gift was made in 1990 was $150,000. The father filed a timely gift tax return but paid no gift tax because of the applicable credit amount. The fair market value of the property at the father's death was $220,000. The daughter sold the property 3 months after her father's death for $220,000. She had a gain of

Which of the following statements concerning the generation-skipping transfer tax (GSTT) is correct?

An individual who is a resident of State W is also the sole proprietor of a business located in State W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z. Which state will tax the real property used by the proprietorship?

Which of the following statements concerning the federal income taxation of estates is (are) correct?

1. An estate is entitled to a personal exemption of $300 and a standard deduction.

2. An estate is entitled to a tax deduction for amounts of income distributed.

The executor of an estate has a choice of waiving the executor's fee. Factors that should be considered by the executor in making this choice include all the following EXCEPT:

A wife makes outright gifts of $40,000 to her son this year, and her husband agrees to split the gifts with her. Which of the following correctly states the amount of the taxable gifts?

Which of the following statements concerning federal gift, estate, and income taxes is (are) correct

1. A taxable gift of income-producing property automatically transfers income tax liability to the donee.

2. The value of gifts made within 3 years of death cannot be brought back into the donor's gross estate.