American College Exam HS330 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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Stephaine

2 months 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 months ago

C) $350,000

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Yuonne

1 months ago

B) $300,000

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Sunny

1 months ago

A) $160,000

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Josphine

2 months 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

2 months 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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Royal

B) $300,000

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Kiera

23 hours ago

A) $160,000

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Lashunda

5 days ago

D) $360,000

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Malcolm

8 days ago

C) $350,000

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Glory

1 months ago

B) $300,000

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Carissa

1 months ago

A) $160,000

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Francoise

2 months 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

2 months 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

2 months 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

2 months 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

2 months 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

2 months 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

2 months 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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