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

2 months 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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Sharen

4 days ago

C) The assets in the trust are free of probate costs.

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Martha

10 days ago

B) The trust terms must be included in the will.

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Leota

23 days ago

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

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Pilar

2 months 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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Jaclyn

4 days ago

Dulce: Thanks for clarifying, testamentary trusts can be tricky.

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Janessa

5 days ago

User 3: A is the correct answer, it only becomes effective at the grantor's death.

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Dulce

8 days ago

User 2: Definitely, it's not that simple with testamentary trusts.

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Gilma

12 days ago

User 1: I agree, D sounds too good to be true.

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Albina

18 days 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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Sena

19 days ago

C) The assets in the trust are free of probate costs.

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Eden

1 months ago

B) The trust terms must be included in the will.

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Jesusita

1 months ago

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

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Octavio

2 months 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

2 months 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

2 months ago

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

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Cherry

1 months ago

C) The assets in the trust are free of probate costs.

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Ilona

1 months ago

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

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Pamela

1 months ago

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

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Ilona

2 months ago

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

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Ria

2 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

2 months ago

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

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