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American College Fundamentals of Estate Planning test Sample Questions:

1. Which of the following statements concerning ownership of property in the form of a joint tenancy with right of survivorship is (are) correct?
1.Either real or personal property may be owned as a joint tenancy with right of survivorship.
2.Nonqualified joint tenants with right of survivorship may have unequal separate shares of the property.

A) 1 only
B) Both 1 and 2
C) 2 only
D) Neither 1 nor 2

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

A) All property that is not separate property is community property.
B) Property inherited during the marriage is the separate property of the spouse who inherited it.
C) Community property loses its identity when a community-property couple moves to a common-law state.
D) Income earned by one spouse becomes community property.

3. Which of the following statements concerning a power of appointment is correct?

A) The recipients of the property after thedonee exercises the power of appointment are known as the appointees.
B) Adonee who possesses a special power of appointment at the time of his or her death has the property included in the gross estate.
C) A limited power of appointment permits thedonee of the power to exercise the power in favor of anyone except the donee's family members.
D) The time that a special power of appointment may be exercised may not be restricted by the donor when creating the power.

4. All the following are grounds for contesting a will EXCEPT:

A) The testator executed a later valid will.
B) The instrument is a forgery.
C) The widow was bequeathed less than her intestate share.
D) The testator did not have testamentary capacity.

5. Which of the following statements concerning state death tax exemptions and tax rates for classes of estate beneficiaries is (are) correct?
1.Exemptions are determined by the closeness of the beneficiary's blood relationship to the decedent.
2.Closest relatives receive the lowest tax rates and lowest exemption amounts.

A) 1 only
B) Both 1 and 2
C) 2 only
D) Neither 1 nor 2

Solutions: