American College HS330 Exam - Topic 1 Question 71 Discussion

Actual exam question for American College's HS330 exam

Question #: 71
Topic #: 1

Mr. Allen died early this year survived by his spouse Mrs. Allen. Among the items or family property are:

1. A $200,000 lire insurance policy on Mr. Allen's life with Mrs. Allen designated as beneficiary. Mrs. Allen has been the owner or the policy ever since it was issued 4 years ago.

2. The family residence with a fair market value of $300,000. Mr. and Mrs. Allen own the residence jointly with the right or survivorship even though Mr. Allen purchased it with his separate funds.

3. A $20,000 bank account. Mr. and Mrs. Allen own the account jointly with the right of survivorship even though Mrs. Allen made all the deposits. What amount of the family property? will be included in Mr. Allen's gross estate for federal estate tax purposes?

A$160,000

B$300,000

C$350,000

D$360,000

Show Suggested Answer

Suggested Answer: A

by Franklyn at Jul 06, 2023, 10:37 PM

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Dick

6 months ago

So, is the total really $360,000? That seems high!

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Alecia

6 months ago

The residence value is included since they own it jointly.

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Carol

7 months ago

Wait, are we sure about the joint accounts? Seems tricky.

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Elvis

7 months ago

Totally agree, that won't count towards the estate!

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Ilene

7 months ago

The life insurance policy goes directly to Mrs. Allen, not in the estate.

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Emerson

7 months ago

I practiced a similar question, and I think the total might be around $360,000, but I can't recall exactly how to break it down.

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Stephanie

7 months ago

The bank account is tricky too; I feel like since Mrs. Allen made the deposits, maybe only part of it is included?

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Doyle

8 months ago

I think the joint ownership of the house means half of its value is included in the estate, but I'm not sure how that works with the right of survivorship.

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Erick

8 months ago

I remember that life insurance proceeds are usually not included in the gross estate if the spouse is the beneficiary, so that might not count.

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Frank

8 months ago

Okay, let me see. The key here is understanding how the Nokia 7750 SR handles VPLS services for different customers. I'm pretty sure it maintains a separate MAC Forwarding Database for each service, so I'll go with option D.

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Deeanna

8 months ago

I'm pretty confident that negative risks are recorded in the negative risk register. That's where you'd keep track of all the potential downside risks to the project, so A seems like the right answer here.

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Stephaine

1 year ago

Ah, the old 'trick question' about estate taxes. I bet the person who wrote this question is chuckling to themselves right now, thinking 'Let's see who can figure this out!'

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Merilyn

1 year ago

C) $350,000

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Yuonne

1 year ago

B) $300,000

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Sunny

1 year ago

A) $160,000

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Josphine

1 year ago

Hold on, are we talking about U.S. dollars or Italian lire? I'm a bit confused here. Either way, I think the answer is C) $350,000.

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Azalee

1 year ago

Hmm, this seems like a tricky one. I'll have to double-check the rules on joint tenancy and life insurance policies to make sure I get this right.

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Kenda

11 months ago

D) $360,000

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Casie

11 months ago

C) $350,000

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Royal

11 months ago

B) $300,000

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Kiera

11 months ago

A) $160,000

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Lashunda

11 months ago

D) $360,000

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Malcolm

12 months ago

C) $350,000

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Glory

1 year ago

B) $300,000

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Carissa

1 year ago

A) $160,000

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Francoise

1 year ago

The life insurance policy on Mr. Allen's life should be included in his gross estate, but the family residence and bank account owned jointly with the right of survivorship should not. Therefore, the correct answer is A) $160,000.

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Angelyn

1 year ago

I'm not sure, but I think the answer might be C) $350,000 because the insurance policy and the bank account should be included, but not the family residence.

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Stephaine

1 year ago

I disagree, I believe the answer is D) $360,000 because all the items listed should be included in Mr. Allen's gross estate.

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Lavina

1 year ago

I think the answer is A) $160,000 because only the insurance policy should be included in Mr. Allen's gross estate.

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Irving

1 year ago

I'm not sure, but I think the answer might be C) $350,000 because the $200,000 life insurance policy should also be included in Mr. Allen's gross estate.

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Kanisha

1 year ago

I agree with Tarra. The total value of the family residence and the bank account is $300,000, so that should be the amount included in Mr. Allen's gross estate.

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Tarra

1 year ago

I think the answer is B) $300,000 because the family residence and the bank account will be included in Mr. Allen's gross estate.

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