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American College Fundamentals of Estate Planning test Sample Questions:
1. Which of the following statements concerning both the joint tenancy with right of survivorship and the tenancy by the entirety forms of real property ownership is correct?
A) Both forms of ownership provide that a deceased owner's interest passes to the surviving owner.
B) Both forms of ownership are restricted to two equal owners at any one time.
C) Both forms of ownership are restricted to husband and wife.
D) Both forms of ownership provide that an owner can sell his interest in the property at any time without destroying the form of ownership.
2. Which of the following statements concerning charitable remainder annuity trusts is correct?
A) The interest paid to the charity must be paid at least quarterly.
B) It provides a fixed annuity income interest to a qualified charity.
C) The donor receives an estate tax charitable deduction for the value of the remainder interest.
D) The term of charitable remainder annuity arrangements is limited to 10 years.
3. Which of the following transactions is a taxable gift for federal gift tax purposes?
A) A man deeded real estate to his sister but did not record the deed nor did he deliver the deed to his sister.
B) A father made a deposit of $100,000 into a bank account titled jointly with his son, and the son has not yet made any withdrawals.
C) A grandmother purchased a U.S. savings bond that is registered as payable to her and her two grandchildren and the bond has not yet been surrendered for cash.
D) A mother purchased listed common stocks titling them in joint names with her daughter and the stocks have not yet been sold.
4. A man died in February of this year. Last year, when he learned that he had terminal illness, he immediately made the following gifts and filed the required gift tax return:
Fair Market Value Gift of listed stock to a
*qualified charity $200,000
*Gift of listed bonds to his wife 300,000
*Gift of a boat to his son 10,000
*Gift of a sports car to his daughter 10,000
What amount must be brought back to the man's estate as an adjusted taxable gift in the calculation of his federal estate taxes?
A) $200,000
B) $520,000
C) $290,000
D) 0
5. Which of the following statements concerning filing the federal estate tax return is correct?
A) For persons dying under current law, an estate tax return must be filed for all U.S. citizen decedents.
B) A one-year extension for filing the estate tax return is granted when the estate contains a closely held business interest.
C) An automatic two-year extension for filing the estate tax return is granted when the decedent dies overseas.
D) The estate tax return must be filed within 9 months of death unless an extension is granted by the IRS.
Solutions:
Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |

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