CANNON TRUST SCHOOL 2-
ADVANCED TOPICS QUIZES
1.-Which-of-the-following-best-describes-the-distribution-of-property-of-a-first-trust-to-one-or-
more-second-trusts-or-to-modify-the-terms-of-the-first-trust?
A.-Decanting-
B.-Distribution
C.-Direct-Skip
D.-Termination---ans-✔✔A.-Decanting
2.-Each-of-the-following-may-provide-legal-authorization-to-decant-a-trust-EXCEPT:
A.-Terms-of-the-instrument
B.-Written-direction-by-a-majority-of-the-beneficiaries-
C.-Uniform-Trust-Decanting-Act
D.-Uniform-Trust-Code---ans-✔✔B.-Written-direction-by-a-majority-of-the-beneficiaries
3.-All-of-these-are-valid-reasons-to-decant-a-trust-EXCEPT-which-of-the-following?
A.-To-fix-drafting-errors-or-makes-ambiguous-terms-clear
B.-To-move-a-trust-to-a-state-with-more-favorable-laws
C.-To-eliminate-a-charitable-beneficiary's-interest-
D.-To-convert-a-trust-to-a-special-needs-trust---ans-✔✔C.-To-eliminate-a-charitable-
beneficiary's-interest
4.-Which-of-the-following-best-describes-what-Trustees-that-are-most-successful-in-
defending-against-abuse-of-discretion-claims-do-consistently?
A.-Do-not-apply-a-process-when-exercising-discretion,-instead-just-consider-the-request-
and-the-person
B.-Apply-a-process-when-exercising-discretion-and-document-the-reasons-for-their-
decisions
C.-Apply-a-process-when-exercising-discretion,-but-do-not-document-the-reasons-
because-it-leaves-written-evidence
D.-Do-not-apply-a-process-when-exercising-discretion,-but-document-the-reasons---ans-
✔✔B.-Apply-a-process-when-exercising-discretion-and-document-the-reasons-for-their-
decisions
, 5.-Settlor's-intent-is-primarily-expressed-in-the-document-as-written-guidance-but-may-be-
influenced-by-all-of-the-following-factors-except-one.-Which-of-the-following-is-least-
influential?
A.-Experience-&-Observation-of-settlor's-past-practices
B.-Protectors-or-Committees-created-by-the-document
C.-Letter-of-Wishes-or-Purpose-statement-published-with-the-document
D.-A-valid-need-of-the-beneficiary-even-if-not-within-the-settlor's-expressed-intent---ans-
✔✔D.-A-valid-need-of-the-beneficiary-even-if-not-within-the-settlor's-expressed-intent
6.-The-following-language,-"Travel-has-been-a-huge-part-of-my-life-and-is-something-I-
would-do-with-our-children-if-I-were-living;-please-make-generous-distributions-for-travel-
and-educational-opportunities.-Even-a-pleasure-trip-can-have-tremendous-advantages-in-
terms-of-experience-and-maturity."-is-an-example-of-which-of-the-following?
A.-Precatory-Language
B.-General-Power-of-Appointment
C.-Limited-Power-of-Appointment
D.-Mandatory-Distribution---ans-✔✔A.-Precatory-Language
7.-When-the-document-expressly-states-that-the-trustee-has-"Absolute-or-Uncontrolled
Discretion"-all-of-the-following-are-true
EXCEPT-which-of-the-following?
A.-Case-law-and-the-Restatement-provide-that-these-terms-are-not-interpreted-literally
B.-Trustee's-discretion-is-always-subject-to-judicial-review
C.-Trustee's-discretion-is-no-longer-subject-to-judicial-review
D.-The-trustee(s)-are-required-to-act-honestly-and-in-accordance-with-the-settlor's-intent---
ans-✔✔C.-Trustee's-discretion-is-no-longer-subject-to-judicial-review
8.-When-the-beneficiary-has-a-legitimate-standard-of-living-which-exceeds-the-ability-of-
the-trust-to-maintain,-what-can-be-called-a-"wasting-trust",-all-of-the-following-are-
appropriate-EXCEPT-which-of-the-following?
A.-Resign-prior-to-the-trust-running-out-of-money-to-avoid-liability
B.-Distribute-to-the-standard,-with-at-least-annual-documentation-and-communication-of-
the-consequences
C.-Counsel-beneficiary-about-sustainable-withdrawal-rates
D.-As-appropriate,-communicate-in-advance-with-remainderpersons-to-set-expectations---
ans-✔✔A.-Resign-prior-to-the-trust-running-out-of-money-to-avoid-liability
9.-Under-the-Uniform-Trust-Code,-a-trustee-may-delegate-duties-and-powers-that-a-
prudent-trustee-of-comparable-skills-could-properly-delegate-under-the-circumstances.-
The-trustee-is-not-liable-to-the-beneficiaries-or-to-the-trust-for-an-action-of-the-agent-to-
whom-the-function-was-delegated-if-the-trustee-exercises-reasonable-care,-skill,-and-
caution-in-each-of-the-following-EXCEPT-which-of-the-following?
ADVANCED TOPICS QUIZES
1.-Which-of-the-following-best-describes-the-distribution-of-property-of-a-first-trust-to-one-or-
more-second-trusts-or-to-modify-the-terms-of-the-first-trust?
A.-Decanting-
B.-Distribution
C.-Direct-Skip
D.-Termination---ans-✔✔A.-Decanting
2.-Each-of-the-following-may-provide-legal-authorization-to-decant-a-trust-EXCEPT:
A.-Terms-of-the-instrument
B.-Written-direction-by-a-majority-of-the-beneficiaries-
C.-Uniform-Trust-Decanting-Act
D.-Uniform-Trust-Code---ans-✔✔B.-Written-direction-by-a-majority-of-the-beneficiaries
3.-All-of-these-are-valid-reasons-to-decant-a-trust-EXCEPT-which-of-the-following?
A.-To-fix-drafting-errors-or-makes-ambiguous-terms-clear
B.-To-move-a-trust-to-a-state-with-more-favorable-laws
C.-To-eliminate-a-charitable-beneficiary's-interest-
D.-To-convert-a-trust-to-a-special-needs-trust---ans-✔✔C.-To-eliminate-a-charitable-
beneficiary's-interest
4.-Which-of-the-following-best-describes-what-Trustees-that-are-most-successful-in-
defending-against-abuse-of-discretion-claims-do-consistently?
A.-Do-not-apply-a-process-when-exercising-discretion,-instead-just-consider-the-request-
and-the-person
B.-Apply-a-process-when-exercising-discretion-and-document-the-reasons-for-their-
decisions
C.-Apply-a-process-when-exercising-discretion,-but-do-not-document-the-reasons-
because-it-leaves-written-evidence
D.-Do-not-apply-a-process-when-exercising-discretion,-but-document-the-reasons---ans-
✔✔B.-Apply-a-process-when-exercising-discretion-and-document-the-reasons-for-their-
decisions
, 5.-Settlor's-intent-is-primarily-expressed-in-the-document-as-written-guidance-but-may-be-
influenced-by-all-of-the-following-factors-except-one.-Which-of-the-following-is-least-
influential?
A.-Experience-&-Observation-of-settlor's-past-practices
B.-Protectors-or-Committees-created-by-the-document
C.-Letter-of-Wishes-or-Purpose-statement-published-with-the-document
D.-A-valid-need-of-the-beneficiary-even-if-not-within-the-settlor's-expressed-intent---ans-
✔✔D.-A-valid-need-of-the-beneficiary-even-if-not-within-the-settlor's-expressed-intent
6.-The-following-language,-"Travel-has-been-a-huge-part-of-my-life-and-is-something-I-
would-do-with-our-children-if-I-were-living;-please-make-generous-distributions-for-travel-
and-educational-opportunities.-Even-a-pleasure-trip-can-have-tremendous-advantages-in-
terms-of-experience-and-maturity."-is-an-example-of-which-of-the-following?
A.-Precatory-Language
B.-General-Power-of-Appointment
C.-Limited-Power-of-Appointment
D.-Mandatory-Distribution---ans-✔✔A.-Precatory-Language
7.-When-the-document-expressly-states-that-the-trustee-has-"Absolute-or-Uncontrolled
Discretion"-all-of-the-following-are-true
EXCEPT-which-of-the-following?
A.-Case-law-and-the-Restatement-provide-that-these-terms-are-not-interpreted-literally
B.-Trustee's-discretion-is-always-subject-to-judicial-review
C.-Trustee's-discretion-is-no-longer-subject-to-judicial-review
D.-The-trustee(s)-are-required-to-act-honestly-and-in-accordance-with-the-settlor's-intent---
ans-✔✔C.-Trustee's-discretion-is-no-longer-subject-to-judicial-review
8.-When-the-beneficiary-has-a-legitimate-standard-of-living-which-exceeds-the-ability-of-
the-trust-to-maintain,-what-can-be-called-a-"wasting-trust",-all-of-the-following-are-
appropriate-EXCEPT-which-of-the-following?
A.-Resign-prior-to-the-trust-running-out-of-money-to-avoid-liability
B.-Distribute-to-the-standard,-with-at-least-annual-documentation-and-communication-of-
the-consequences
C.-Counsel-beneficiary-about-sustainable-withdrawal-rates
D.-As-appropriate,-communicate-in-advance-with-remainderpersons-to-set-expectations---
ans-✔✔A.-Resign-prior-to-the-trust-running-out-of-money-to-avoid-liability
9.-Under-the-Uniform-Trust-Code,-a-trustee-may-delegate-duties-and-powers-that-a-
prudent-trustee-of-comparable-skills-could-properly-delegate-under-the-circumstances.-
The-trustee-is-not-liable-to-the-beneficiaries-or-to-the-trust-for-an-action-of-the-agent-to-
whom-the-function-was-delegated-if-the-trustee-exercises-reasonable-care,-skill,-and-
caution-in-each-of-the-following-EXCEPT-which-of-the-following?
