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American College Fundamentals of Estate Planning test Sample Questions:

1. To determine whether a taxable gift has been made, the IRS focuses on all the following factors EXCEPT:

A) Was the value of the gift property in excess of the annual per-donee exclusion?
B) Did the donor absolutely, irrevocably, and currently divest himself of dominion and control over the property?
C) Was the transferred property real property or personal property?
D) Was the property transferred for less than an adequate and full consideration in money or money's worth?

2. Which of the following statements concerning a power of appointment is (are) correct?
1.A power of appointment can be designed to restrict the donee's right to appoint the property in favor of a specific class of recipients.
2.A power of appointment can be designed to restrict the time period during which the donee may
exercise the power.

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

3. Having a will enables an individual to do which of the following?
1.Make testamentary bequests to selected charitable organizations
2.Make specific bequests to selected friends

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

4. For estate tax purposes which of the following is (are) a form of charitable gifts that may qualify for the charitable deduction?
1.Split gifts
2.Charitable remainder trusts

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

5. Which of the following statements concerning marital transfers to a non-U.S. citizen spouse is (are) correct?
1.A marital deduction is automatically available as long as property is transferred outright to the non-citizen spouse.
2.A marital deduction is automatically available if the transferor-decedent spouse is a U.S. citizen.

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

Solutions: