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American College Fundamentals of Estate Planning test Sample Questions:
1. All the following statements concerning the gift and estate tax chartiable deduction are correct EXCEPT:
A) An estate tax charitable deduction is allowed for the full value of property transferred to a qualified charity but only if the property is included in the donor gross estate.
B) If the donor retains an interest in property contributed to a qualified charity during lifetime, the value of the property may be included in the donor gross estate.
C) A donor is denied a charitable deduction for property that passes to a qualified charity as the result of a qualified disclaimer if the donor original transfer was to anoncharitable donee.
D) It is possible for a charitable contribution made during the donor lifetime to generate both income and transfer tax deductions for the donor.
2. The personal representative of a decedent has the duty to file which of the following income tax returns?
1.The decedent's final income tax return
2.The estate's income tax return
A) 1 only
B) Both 1 and 2
C) 2 only
D) Neither 1 nor 2
3. Which of the following statements concerning executors is correct?
A) All executors must post bonds.
B) An executor can be given broad and discretionary powers with respect to the management of the estate.
C) The executor must be a licensed attorney in the decedent's state of domicile.
D) The executor named in the will of a deceased person is automatically authorized to act.
4. If a grantor establishes an irrevocable trust, the income of the trust will be taxed to the grantor if it is used to pay premiums for life insurance on the life of
A) the spouse of the grantor
B) the father of the grantor
C) a grandchild of the grantor
D) a child of the grantor
5. An executor elects to value the assets of the estate at the alternative valuation date 6 months after death. Which of the following statements concerning the estate tax value of assets included in this estate is correct?
A) Property sold before the alternate valuation date is valued at the alternate valuation date.
B) Property that has increased in value since the date of death may be valued at the date of death if the executor so elects.
C) An annuity included in the gross estate that diminishes with the mere passage of time is includible at the date of death value.
D) Property distributed under the will before the alternate valuation date is valued at the date of death.
Solutions:
Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: C |

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