American College HS330 Exam - Topic 1 Question 1 Discussion

Actual exam question for American College's HS330 exam

Question #: 1
Topic #: 1

A married man has two adult sons. His entire estate is in excess of $1,500,000 and consists entirely of probate assets. He wants to make certain that if he predeceases his wife she will receive all estate income as long as she lives, and the assets remaining at her death will pass equally to their two sons. He wants to pass all assets to this wife and sons as free of federal estate taxes as possible. To best accomplish these objectives, the man should include which of the following estate plans in his will?

AEstablish a QTIP trust for half his estate and bequeath the remainder to his wife

BEstablish a marital deduction trust with a general power of appointment for half his estate and place the remainder in a QTIP trust

CEstablish a bypass trust equal to the applicable exclusion amount and place the remainder of his estate in a QTIP trust

DEstablish a QTIP trust for his entire estate

Show Suggested Answer

Suggested Answer: C

by Deeanna at May 04, 2022, 02:37 PM

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Michael

4 months ago

Wait, I didn't know trusts could avoid estate taxes like that!

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Corinne

4 months ago

Why not just go with a QTIP for everything? Seems simpler!

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Annett

4 months ago

Not sure if a bypass trust is necessary here, seems complicated.

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Leoma

4 months ago

I think option C is the best choice for tax benefits.

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Detra

5 months ago

A QTIP trust can definitely help with income for the wife.

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Ligia

5 months ago

I'm a bit confused by the image and the question. Is there any additional context I'm missing? I want to make sure I understand the full scope of the attack before selecting an answer.

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Jenelle

5 months ago

I think I've got a handle on this. In the worst case, I'd expect the indexing, typing, merging, and parsing queues to all fill up as the system struggles to keep up with the inefficient regex transforms. The input queue might also be affected, but that seems less likely to be the primary issue.

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Adell

5 months ago

B. Water seems like the best choice here. Detention charges are common in maritime transportation, like when ships are delayed at ports or in shipping lanes.

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Lavonne

5 months ago

This seems like a tricky question. I'll need to think carefully about the implications of DevOps and what other boundaries might need to disappear.

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