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Updated: Jun 02, 2026
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American College Fundamentals of Estate Planning test Sample Questions:
1. Which of the following types of partial interests in property may be allowed a charitable deduction for estate tax purposes?
1.A remainder interest in the donor vacation home
2.A testamentary gift of a percentage of a decedent entire interest in property held in trust
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
2. Which of the following statements concerning ownership of property held in trust is (are) correct?
1.The legal owner of property held in trust is a trustee.
2.The equitable owner of property held in trust is a beneficiary.
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
3. An individual who is a resident of State W is also the sole proprietor of a business located in State
W. He owns real property located in State X that is used by the proprietorship. While on vacation in State Y, the individual meets an untimely death. Under the terms of his will, his entire estate is bequeathed to a resident of State Z.
Which state will tax the real property used by the proprietorship?
A) State Z
B) State Y
C) State W
D) State X
4. Which of the following statements concerning property is (are) correct?
1.A mortgage on real estate is real property.
2.A tree growing on land is real property.
A) Neither 1 nor 2
B) 2 only
C) 1 only
D) Both 1 and 2
5. All the following statements concerning real property ownership by married couples as joint tenants with right of survivorship are correct EXCEPT:
A) Jointly held property between spouses does not pass through the probate estate of the first spouse to die.
B) All benefits of ownership remain available to the surviving spouse without interruption during the administration of the deceased spouse's estate.
C) In common-law states the total value of the property receives a stepped-up tax basis in the estate of the first spouse to die.
D) The deceased spouse's interest in the property qualifies for the marital deduction since it passes outright to the surviving spouse.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |
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