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2026 Statistics

Key Facts: HS 330 Exam

$15M

2026 Basic Exclusion Amount

IRS / One Big Beautiful Bill Act

$19,000

2026 Gift Annual Exclusion

IRS

$15M

2026 GST Exemption

IRS

40%

Top Transfer Tax Rate

IRC Section 2001

100

Free Practice Questions

OpenExamPrep

Online

Proctored Final Exam

The American College

HS 330 Fundamentals of Estate Planning is an online proctored, multiple-choice course final exam from The American College of Financial Services within the ChFC and CFP Education Programs. It tests the estate and gift tax planning process, wills and probate, the unified transfer tax (2026 basic exclusion $15,000,000, annual gift exclusion $19,000, GST exemption $15,000,000, 40% top rate), gross estate inclusion, the unlimited marital and charitable deductions, trusts, powers of appointment, generation-skipping transfer tax, asset valuation, life insurance, and estate liquidity. The American College does not publish a fixed public question count, pass rate, or standalone exam fee.

Sample HS 330 Practice Questions

Try these sample questions to test your HS 330 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the basic exclusion amount (the amount sheltered by the unified credit) against federal estate and gift tax for a decedent dying or a donor making gifts in 2026?
A.$13,990,000
B.$11,700,000
C.$15,000,000
D.$5,490,000
Explanation: The One Big Beautiful Bill Act amended IRC Section 2010(c)(3) to set the basic exclusion amount at $15,000,000 for 2026, up from $13,990,000 in 2025. The unified credit equals the tentative tax on this amount.
2In 2026 a donor gives $34,000 outright to an unrelated friend. How much of this gift is a taxable gift after applying the gift tax annual exclusion?
A.$0
B.$19,000
C.$34,000
D.$15,000
Explanation: The 2026 annual exclusion is $19,000 per donee for gifts of a present interest. $34,000 minus the $19,000 exclusion leaves a $15,000 taxable gift, which reduces the donor's remaining applicable exclusion (or generates tax if exhausted).
3A gift in trust gives the beneficiary no current right to income or principal until age 30. For gift tax purposes, this transfer is characterized as a gift of:
A.A present interest qualifying for the annual exclusion
B.A future interest not qualifying for the annual exclusion
C.A terminable interest qualifying for the marital deduction
D.An incomplete gift with no tax consequences
Explanation: The annual exclusion is available only for gifts of a present interest, an unrestricted right to immediate use, possession, or enjoyment. A gift in trust deferring all benefit to age 30 is a future interest, so no annual exclusion is allowed unless a Crummey power is added.
4What is the highest marginal federal estate and gift tax rate applied to cumulative taxable transfers in 2026?
A.40%
B.35%
C.45%
D.55%
Explanation: The unified estate and gift tax has a top marginal rate of 40% under IRC Section 2001(c), reached on the taxable amount exceeding $1,000,000. The generation-skipping transfer tax also uses this 40% maximum rate.
5Property titled as joint tenancy with right of survivorship between two non-spouses passes at the first owner's death by:
A.The terms of the decedent's will
B.The state intestacy statute
C.Operation of law to the surviving joint tenant
D.Probate administration
Explanation: Joint tenancy with right of survivorship passes automatically by operation of law to the surviving joint tenant outside probate. The decedent's will cannot redirect the property, and intestacy does not apply because a survivorship feature governs.
6When a married decedent leaves the entire estate outright to a U.S.-citizen surviving spouse, the federal estate tax marital deduction is:
A.Limited to one-half of the adjusted gross estate
B.Limited to the basic exclusion amount
C.Available only if a QTIP election is made
D.Unlimited, deferring tax until the survivor's death
Explanation: IRC Section 2056 grants an unlimited marital deduction for qualifying transfers to a U.S.-citizen spouse, eliminating estate tax at the first death. The transferred property is instead included in the surviving spouse's estate, deferring rather than eliminating tax.
7A decedent owned a life insurance policy on his own life and named his estate as beneficiary. For federal estate tax purposes, the policy proceeds are:
A.Excluded entirely from the gross estate
B.Included only to the extent of the cash surrender value
C.Included in the gross estate under Section 2042
D.Included only if the policy was bought within three years of death
Explanation: Under IRC Section 2042, insurance proceeds are included in the gross estate if the proceeds are payable to the estate or if the decedent held incidents of ownership. Because the decedent owned the policy and the estate is beneficiary, the full death benefit is included.
8An irrevocable life insurance trust (ILIT) is funded so that the trustee owns and is beneficiary of a policy on the grantor's life. The principal estate tax advantage is that:
A.The premiums are income-tax deductible to the grantor
B.The proceeds qualify for the marital deduction
C.The death proceeds are excluded from the grantor's gross estate
D.The trust eliminates probate for all of the grantor's assets
Explanation: When properly structured, the ILIT (not the insured) owns the policy and holds no incidents of ownership for the grantor, so the proceeds escape inclusion under Section 2042. This removes the death benefit from the taxable estate while providing liquidity.
9Under the three-year rule of IRC Section 2035, which transfer is pulled back into the gross estate if the decedent dies within three years?
A.The transfer of a life insurance policy on the decedent's own life
B.A gift of marketable securities
C.An outright gift of cash to a child
D.A sale of property for full consideration
Explanation: Section 2035 brings back into the gross estate the proceeds of a life insurance policy on the decedent's life that was gifted within three years of death. Outright gifts of cash or securities are not subject to this rule after 1981.
10A bypass (credit shelter) trust is most commonly used to:
A.Use the first spouse's applicable exclusion amount and keep appreciation out of the survivor's estate
B.Qualify a terminable interest for the marital deduction
C.Avoid the generation-skipping transfer tax automatically
D.Provide an income tax deduction to the grantor
Explanation: A bypass trust funds with assets up to the first spouse's applicable exclusion amount, sheltering them with the unified credit. The trust assets and their post-death appreciation are excluded from the surviving spouse's gross estate even though the survivor may receive income.

About the HS 330 Exam

HS 330 Fundamentals of Estate Planning is a foundational course in The American College ChFC and CFP Education Programs. It covers the estate and gift tax planning process, property transfer, the unified transfer tax, gross estate inclusion, marital and charitable deductions, gifting, trusts, powers of appointment, generation-skipping transfer tax, valuation, life insurance, and estate liquidity.

Assessment

Question count not published by the exam provider

Time Limit

Timed online proctored final exam per the current course syllabus

Passing Score

The American College sets a course passing standard; no fixed public percentage is published for HS 330

Exam Fee

HS 330 tuition is bundled in the ChFC or CFP Education Program; no separate standalone exam fee is published (The American College of Financial Services)

HS 330 Exam Content Outline

Core

Estate Planning Process and Property Transfer

Steps in the estate planning and probate process, wills, intestacy, ownership forms, community vs. common-law property, and probate vs. nonprobate transfers.

Core

Unified Transfer Tax System

Integration of estate and gift tax, basic exclusion amount, unified credit, adjusted taxable gifts, tentative tax, DSUE portability, and the 40% top rate.

Core

Gross Estate and Inclusion

Sections 2033 to 2042 inclusion: property owned at death, retained interests, revocable transfers, joint property, powers, the three-year rule, and gross-up.

Core

Marital and Charitable Deductions

Unlimited marital deduction, terminable interest rule, QTIP elections, QDOT for noncitizen spouses, and unlimited charitable estate and gift tax deductions.

Core

Lifetime Gifting Strategies

Annual exclusion, present vs. future interest, gift splitting, qualified transfers, 529 five-year election, basis rules, completed gifts, and net gifts.

Core

Trusts and Powers of Appointment

Revocable, bypass, QTIP, ILIT, GRAT, GRUT, QPRT, charitable trusts, Crummey powers, grantor trusts, IDGTs, and general vs. special powers.

Core

Generation-Skipping Transfer Tax

Skip persons, direct skips, taxable terminations and distributions, GST exemption, inclusion ratio, and the relationship to estate and gift tax.

Core

Valuation, Life Insurance, and Liquidity

Fair market and special-use valuation, discounts, life insurance incidents of ownership, Sections 303 and 6166, and buy-sell planning.

How to Pass the HS 330 Exam

What You Need to Know

  • Passing score: The American College sets a course passing standard; no fixed public percentage is published for HS 330
  • Assessment: Question count not published by the exam provider
  • Time limit: Timed online proctored final exam per the current course syllabus
  • Exam fee: HS 330 tuition is bundled in the ChFC or CFP Education Program; no separate standalone exam fee is published

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

HS 330 Study Tips from Top Performers

1Memorize the 2026 figures: $15,000,000 basic exclusion, $19,000 annual exclusion, $15,000,000 GST exemption, and the 40% top rate.
2Learn the gross estate inclusion sections (2033, 2035, 2036, 2038, 2040, 2041, 2042) as a set and practice matching facts to each.
3Distinguish trust types by purpose: bypass for exclusion use, QTIP for controlled marital deduction, ILIT for insurance exclusion, and GRAT/QPRT for appreciation transfer.
4Work the GST tax framework: skip persons, the three event types, exemption allocation, and the inclusion ratio.
5Practice computational gift questions involving the annual exclusion, gift splitting, and qualified transfers.
6Build an error log that tags mistakes by topic so you can target weak inclusion, deduction, or valuation rules before the final.

Frequently Asked Questions

What is HS 330?

HS 330 Fundamentals of Estate Planning is a foundational course offered by The American College of Financial Services. It is a required course in both the ChFC designation program and the CFP Certification Education Program and ends with an online proctored multiple-choice final exam.

What format is the HS 330 exam?

The HS 330 final exam is an online proctored, multiple-choice course exam delivered through The American College learning platform. The American College does not publish a fixed public question count for the exam.

What topics does HS 330 cover?

HS 330 covers the estate and gift tax planning process, wills and probate, property ownership, the unified transfer tax, gross estate inclusion, marital and charitable deductions, gifting, trusts, powers of appointment, generation-skipping transfer tax, valuation, life insurance, and estate liquidity.

What are the 2026 estate and gift tax figures tested in HS 330?

For 2026 the basic exclusion amount is $15,000,000 per person, the gift tax annual exclusion is $19,000 per donee, the GST exemption is $15,000,000, and the top transfer tax rate is 40%. The One Big Beautiful Bill Act set the $15,000,000 exclusion with no scheduled sunset.

Is there a passing score for HS 330?

The American College sets a course passing standard for the HS 330 proctored final exam but does not publish a fixed public passing percentage. Candidates should confirm the current standard within the course.

How much does HS 330 cost?

HS 330 tuition is bundled into the ChFC or CFP Education Program package. The American College does not publish a separate standalone HS 330 exam fee, so candidates should confirm pricing for their chosen program with the College.