American College Fundamentals of Estate Planning test : HS330

  • Exam Code: American College
  • Exam Name: Fundamentals of Estate Planning test
  • Updated: Sep 21, 2026
  • Q & A: 400 Questions and Answers

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American College HS330 Exam Syllabus Topics:
SectionObjectives
Topic 1: Introduction to Estate Planning- Purpose and objectives of estate planning
  • 1. Family and beneficiary considerations
    • 2. Wealth transfer goals
      Topic 2: Estate and Gift Taxation- Federal estate tax system
      • 1. Exemptions and tax thresholds
        • 2. Tax calculation principles
          - Gift tax rules
          • 1. Taxable gifts and reporting
            • 2. Annual and lifetime exclusions
              Topic 3: Trusts- Trust fundamentals
              • 1. Types of trusts (revocable and irrevocable)
                • 2. Trust parties and responsibilities
                  - Trust taxation and control
                  • 1. Tax treatment of trusts
                    • 2. Asset protection and control strategies
                      Topic 4: Property Transfer and Liquidity Planning- Estate liquidity strategies
                      • 1. Asset liquidation considerations
                        • 2. Life insurance in estate planning
                          - Non-probate transfers
                          • 1. Beneficiary designations
                            • 2. Joint ownership structures
                              Topic 5: Wills and Probate- Probate process
                              • 1. Role of executor and courts
                                • 2. Estate administration
                                  - Wills
                                  • 1. Types and requirements of valid wills
                                    • 2. Will execution and amendment
                                      American College Fundamentals of Estate Planning test Sample Questions:
                                      Question #1

                                      All the following statements concerning transfers at death under a will are correct EXCEPT:

                                      • A. If during lifetime a decedent disposed of property that was the subject of a specific bequest,ademption occurs.
                                      • B. It is common for a will to contain a clause that exempts the executor from posting bond.
                                      • C. Specific bequests of a decedent's property are satisfied prior to distribution of the decedent's residuary estate.
                                      • D. The most appropriate way to sever a joint tenancy with right of survivorship is for the joint tenant-decedent to make a specific bequest of the property under a will.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: D  🗳️

                                      Question #2

                                      Which of the following actions on the part of a trustee is a breach of his duties?

                                      • A. Placing cash from the sale of securities in a high yield money market fund pending a decision to invest the funds elsewhere
                                      • B. Purchasing assets for personal use from the trust at their fair market value with the approval of all beneficiaries
                                      • C. Investing all trust assets in securities that favor the income beneficiaries to the detriment ofremainderpersons
                                      • D. Purchasing securities in good faith from a third party just prior to a sharp decrease in their value
                                      Reveal Solution  Discussion  0

                                      Correct Answer: C  🗳️

                                      Question #3

                                      To qualify the seller of property for installment sale tax treatment, the transaction must meet which of the following conditions?

                                      • A. There must be no more than ten installments.
                                      • B. At least 30 percent of the purchase price must be paid in the year of sale.
                                      • C. All installments must be in equal amounts of principal.
                                      • D. The entire purchase price must not be paid in the taxable year of sale.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: D  🗳️

                                      Question #4

                                      Which of the following statements concerning a general power of appointment is (are) correct?
                                      1.A general power of appointment is a power over property so broad that it approaches actual ownership or control over the property subject to the power.
                                      2.The property subject to a general power of appointment will be includible in the gross estate of the holder of the power if held until death.

                                      • A. Neither 1 nor 2
                                      • B. Both 1 and 2
                                      • C. 1 only
                                      • D. 2 only
                                      Reveal Solution  Discussion  0

                                      Correct Answer: B  🗳️

                                      Question #5

                                      Which of the following statements concerning ownership of property under a tenancy by the entirety is correct?

                                      • A. It is a form of property ownership available only to married persons.
                                      • B. One tenant can freely transfer his or her property interest to a third person.
                                      • C. It is a form of property ownership that applies only to personal property.
                                      • D. The property will be in the probate estate of the first joint tenant to die.
                                      Reveal Solution  Discussion  0

                                      Correct Answer: A  🗳️

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