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American College Fundamentals of Estate Planning test Sample Questions:
1. Which of the following factors is (are) used to make a choice between having an entity-purchase or cross-purchase partnership buy-sell agreement?
1.The cost basis of the partners' business interests.
2.The amount of the partners?individual personal net worths.
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
2. Which of the following statements concerning property is (are) correct?
1.Personal property is all property that is not considered to be real property.
2.A mortgage on real property is treated as real property.
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
3. Which of the following provisions is (are) generally common to all buy-sell agreements?
1.Provisions for modification of the agreement.
2.Provisions for lifetime business interest transfer restrictions.
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
4. All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
A) All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
B) In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
C) Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
D) The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
5. All the following will be brought back into the donor's gross estate for federal estate tax purposes EXCEPT
A) the gift taxes paid last year on a gratuitous transfer of real property
B) an outright, gratuitous transfer of real property in contemplation of death
C) a gratuitous transfer of real property to a revocable intervivos trust
D) a gratuitous transfer of real property with a reserved right to use and enjoy it for life
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |



