Free American College HS330 Exam Actual Questions

The questions for HS330 were last updated On Dec 17, 2025

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Question No. 1

A father wants to accumulate funds for his 12-year-old son's college education. On the advice of his attorney, the father establishes an IRC Section 2503(c) trust and funds it with annual gifts. All the following statements concerning this arrangement are correct EXCEPT:

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Correct Answer: B

Question No. 2

All the following items of property will be included in a decedent's gross estate for federal estate tax purposes EXCEPT:

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Correct Answer: B

Question No. 3

Which of the following is an example of a taxable gift for federal gift tax purposes?

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Correct Answer: D

Question No. 4

Which of the following statements concerning the estate tax marital deduction is correct?

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Correct Answer: C

Question No. 5

A man is planning to establish and fund an irrevocable trust for the benefit of his two sons, ages 19 and 22, and plans to give the trustee power to sprinkle trust income. From the standpoint or providing federal income, gift, and estate tax savings, which or the following would be a suitable trustee?

l. The grantor of the trust

II. The grantor's 22-year-old son

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Correct Answer: D