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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Pilar

20 hours ago

Haha, D is a classic 'too good to be true' answer. Saving on death taxes? Not a chance with a testamentary trust!

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Octavio

4 days ago

The assets in the trust are not free of probate costs, so C is incorrect. Gotta watch out for those tricky questions!

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King

5 days ago

The trust terms need to be included in the will, so B is correct. I remember learning that in my estate planning class.

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Leatha

13 days ago

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

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Ilona

16 days ago

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

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Ria

19 days ago

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

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Ilona

21 days ago

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

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