American College Exam HS330 Topic 1 Question 90 Discussion

Actual exam question for American College's HS330 exam

Question #: 90
Topic #: 1

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

1. A $300,000 life insurance policy on Mr. Allen's life with Mrs. Allen designated as beneficiary. Mrs. Allen has been the owner of the policy ever since it was issued 4 years ago.

2. The family residence with a fair market value of $400,000. Mr. and Mrs. Allen own the residence jointly with the right of survivorship even though Mr. Allen purchased it with his separate funds.

3. A$40,000 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$220,000

B$400,000

C$500,000

D$520,000

Show Suggested Answer

Suggested Answer: D

by Kimbery at Jun 18, 2024, 07:42 AM

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Vanesa

2 months ago

Okay, let's see... The life insurance policy is definitely included, and the family residence is too, even though it was purchased with Mr. Allen's separate funds. I think I've got it - the answer is D. $360,000.

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Jame

1 months ago

Yes, the bank account is also included because it is owned jointly with the right of survivorship.

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Amie

1 months ago

But what about the bank account? Is that included as well?

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Kathrine

1 months ago

I think you're right, the life insurance policy and the family residence are both included in Mr. Allen's gross estate.

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Emilio

2 months ago

Ah, the joys of estate planning. I'm just glad I don't have to deal with this stuff in my day-to-day life. Leave it to the professionals, I say!

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Lindsey

1 months ago

C) $350,000

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Cora

1 months ago

B) $300,000

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Santos

2 months ago

A) $160,000

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Maryann

3 months ago

This question is making my head spin! I bet the IRS wishes they could just tax the whole $700,000 and call it a day. Where's the fun in that, though?

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Arlen

29 days ago

D) $360,000

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Marjory

1 months ago

C) $350,000

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Daniel

1 months ago

B) $300,000

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Merri

2 months ago

C) $350,000

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Felix

2 months ago

B) $300,000

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Cristen

2 months ago

A) $160,000

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Helene

3 months ago

A) $160,000

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Dick

3 months ago

Hmm, I'm not sure about this one. It seems like there are a lot of factors to consider. I better double-check my work on this one.

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Dannette

3 months ago

I think the answer is D. $360,000. The life insurance policy and the family residence are both included in the gross estate, but the joint bank account is excluded since Mrs. Allen made all the deposits.

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Paul

2 months ago

User2

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Cassandra

2 months ago

User1

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Rene

3 months ago

I'm not sure, but I think the life insurance policy and the bank account should be included in Mr. Allen's gross estate, so the answer might be D) $360,000.

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Isidra

3 months ago

I disagree, I believe the correct answer is D) $360,000.

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Ludivina

4 months ago

I think the answer is C) $350,000.

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