CANNON TRUST SCHOOL II CERTIFICATION
EVALUATION EXAMS 2026 QUESTIONS WITH
SOLUTIONS GUARANTEED PASS
◉ In 2019, having made no prior gifts, Don began making annual
gifts to his son of $55,000. What is the first tax year for which he will
have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022. Answer: A. 2019
◉ Which of the following does not qualify for purposes of the gift tax
annual exclusion?
A. Vested remainder interest
B. Simple trust
C. Life estate
D. Complex trust with "Crummey" powers. Answer: A. Vested
remainder interest
,◉ In 2023 a widow made the following transfers:
$20,000 - grandson's college tuition, paid to the college directly.
$19,000 - to the grandson directly for college books and dormitory
fees.
$33,000 - to the granddaughter directly for tuition at law school.
What is the amount of her net taxable gifts for this year?
A. $1,000
B. $18,000
C. $32,000
D. $48,000. Answer: B. $18,000
◉ Which of the following scenarios does NOT qualify for the marital
deduction?
A. Life Insurance proceeds validly payable to an ex-spouse.
B. Lump-sum distribution of the decedent's qualified retirement
plan to the surviving spouse.
C. Specific bequest in the decedent's will of intangible personal
property to the surviving spouse.
,D. Joint property that passes to the surviving spouse by statute.
Answer: A. Life Insurance proceeds validly payable to an ex-spouse.
◉ A couple has been married for ten years. The first spouse dies this
year. All of the following are required in order for portability of the
unused exemption to be available to the surviving spouse EXCEPT:
A. a timely estate tax return being filed.
B. the estate being large enough to cause federal estate tax.
C. the executor electing portability.
D. the couple being married at the time of death. Answer: B. the
estate being large enough to cause federal estate tax.
◉ Which of the following is NOT an advantage of using the credit
shelter portion of the A-B trust in the era of portability?
A. Appreciation after the death of the first spouse is not included of
the surviving spouse's estate.
B. Preservation of the full generation skipping transfer tax
exemption for each spouse.
C. Asset protection for the surviving spouse.
D. Lower income tax for trust income retained in the trust.. Answer:
D. Lower income tax for trust income retained in the trust.
, ◉ A client dies this year and leaves everything to their surviving
spouse who is a U.S. citizen. The executor files a timely estate tax
return and elects portability. What amount of deceased spousal
unused exclusion will the surviving spouse have the right to use?
A. $0
B. The Basic Exclusion Amount of the first spouse to die
C. Up to the value of the first spouse to die's estate
D. Unlimited. Answer: B. The Basic Exclusion Amount of the first
spouse to die
◉ Your client, Elizabeth, creates a revocable living trust and
transfers her investment portfolio into the trust. The trust is for the
sole benefit of Elizabeth for life and her death the all assets will pass
to her daughter, Sandra, outright. Which of the following is
responsible for capital gains tax due on capital gains realized during
Elizabeth's lifetime?
A. Elizabeth
B. Sandra
C. The trust
D. The estate. Answer: A. Elizabeth
EVALUATION EXAMS 2026 QUESTIONS WITH
SOLUTIONS GUARANTEED PASS
◉ In 2019, having made no prior gifts, Don began making annual
gifts to his son of $55,000. What is the first tax year for which he will
have to file a gift tax return?
A. 2019
B. 2020
C. 2021
D. 2022. Answer: A. 2019
◉ Which of the following does not qualify for purposes of the gift tax
annual exclusion?
A. Vested remainder interest
B. Simple trust
C. Life estate
D. Complex trust with "Crummey" powers. Answer: A. Vested
remainder interest
,◉ In 2023 a widow made the following transfers:
$20,000 - grandson's college tuition, paid to the college directly.
$19,000 - to the grandson directly for college books and dormitory
fees.
$33,000 - to the granddaughter directly for tuition at law school.
What is the amount of her net taxable gifts for this year?
A. $1,000
B. $18,000
C. $32,000
D. $48,000. Answer: B. $18,000
◉ Which of the following scenarios does NOT qualify for the marital
deduction?
A. Life Insurance proceeds validly payable to an ex-spouse.
B. Lump-sum distribution of the decedent's qualified retirement
plan to the surviving spouse.
C. Specific bequest in the decedent's will of intangible personal
property to the surviving spouse.
,D. Joint property that passes to the surviving spouse by statute.
Answer: A. Life Insurance proceeds validly payable to an ex-spouse.
◉ A couple has been married for ten years. The first spouse dies this
year. All of the following are required in order for portability of the
unused exemption to be available to the surviving spouse EXCEPT:
A. a timely estate tax return being filed.
B. the estate being large enough to cause federal estate tax.
C. the executor electing portability.
D. the couple being married at the time of death. Answer: B. the
estate being large enough to cause federal estate tax.
◉ Which of the following is NOT an advantage of using the credit
shelter portion of the A-B trust in the era of portability?
A. Appreciation after the death of the first spouse is not included of
the surviving spouse's estate.
B. Preservation of the full generation skipping transfer tax
exemption for each spouse.
C. Asset protection for the surviving spouse.
D. Lower income tax for trust income retained in the trust.. Answer:
D. Lower income tax for trust income retained in the trust.
, ◉ A client dies this year and leaves everything to their surviving
spouse who is a U.S. citizen. The executor files a timely estate tax
return and elects portability. What amount of deceased spousal
unused exclusion will the surviving spouse have the right to use?
A. $0
B. The Basic Exclusion Amount of the first spouse to die
C. Up to the value of the first spouse to die's estate
D. Unlimited. Answer: B. The Basic Exclusion Amount of the first
spouse to die
◉ Your client, Elizabeth, creates a revocable living trust and
transfers her investment portfolio into the trust. The trust is for the
sole benefit of Elizabeth for life and her death the all assets will pass
to her daughter, Sandra, outright. Which of the following is
responsible for capital gains tax due on capital gains realized during
Elizabeth's lifetime?
A. Elizabeth
B. Sandra
C. The trust
D. The estate. Answer: A. Elizabeth
