American College Exam HS330 Topic 1 Question 73 Discussion

Actual exam question for American College's HS330 exam

Question #: 73
Topic #: 1

[All HS330 Questions]

Which of the following statements concerning a testamentary trust is correct?

AIt becomes effective only at the death of the grantor.

BThe trust terms must be included in the will.

CThe assets in the trust are tree of probate costs.

DIt saves federal and state death taxes at the death of the grantor.

Show Suggested Answer

Suggested Answer: A

by Angella at Aug 06, 2023, 12:08 PM

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Marti

19 days ago

As an aspiring estate attorney, I can say with confidence that A is the right choice here. Testamentary trusts take effect at the grantor's passing.

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1 months ago

A testamentary trust is definitely effective at the grantor's death, so A is the correct answer.

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Ilona

7 days ago

Yes, that's correct. The trust is established after the grantor passes away.

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Pamela

10 days ago

A) It becomes effective only at the death of the grantor.

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Ilona

1 months ago

But doesn't a testamentary trust also help in avoiding probate costs as mentioned in option C?

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Ria

1 months ago

I disagree, I believe the correct statement is B) The trust terms must be included in the will.

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Ilona

1 months ago

I think the correct statement is A) It becomes effective only at the death of the grantor.

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