CANNON TRUST FUNDAMENTALS EXAM
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Testamentary Trusts at funding can have all of the following
EXCEPT which one of the following? - ANSWERS-A.
Revocable (Right answer)
B. More flexible in protecting children than a court
established guardianship
C. Sometimes tax advantaged and an asset protection
devices
D. Set up under the terms of the decedant's will
Which of the following is the most contractual, least
fiduciary relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship - ANSWERS-C. Agency
,In the transfer A to B, B has what kind of interest following
the transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder - ANSWERS-B. Fee Simple
Under JTWROS, when one tenant dies which of the
following best describes the result?
A. His/her share passes through her will to their heirs
B. His/her share passes by law to their heirs, not through
their will
C. His/her share passes to the surviving tenant, regardless of
what their will says
D. the asset must be sold and the estate gets 1/2 the
proceeds - ANSWERS-C. His/her share passes to the
surviving tenant, regardless of what their will says
Value of Qualified Interests determined under IRC 7530 -
ANSWERS-120% of the federal midterm rate
, Appreciated assets donated to a private foundation may be
deducted from income up to what percentage? - ANSWERS-
20% of AGI
Appreciated assets donated to a public charity may be
deducted from income up to what percentage? - ANSWERS-
30% of AGI
Cash donated to a private foundation may be deducted from
income up to what percentage? - ANSWERS-30% of AGI
Cash donated to a public charity may be deducted from
income up to what percentage? - ANSWERS-60% of AGI
What is the two (2) main differences between a CRUT and a
CRAT? - ANSWERS-CRUT = ability to make additions in later
year, and fluctuation of fixed income percentage based of
FMV
CRAT = NO additions in later year
Crummey power created what kind of interest? - ANSWERS-
Present interest
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Testamentary Trusts at funding can have all of the following
EXCEPT which one of the following? - ANSWERS-A.
Revocable (Right answer)
B. More flexible in protecting children than a court
established guardianship
C. Sometimes tax advantaged and an asset protection
devices
D. Set up under the terms of the decedant's will
Which of the following is the most contractual, least
fiduciary relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship - ANSWERS-C. Agency
,In the transfer A to B, B has what kind of interest following
the transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder - ANSWERS-B. Fee Simple
Under JTWROS, when one tenant dies which of the
following best describes the result?
A. His/her share passes through her will to their heirs
B. His/her share passes by law to their heirs, not through
their will
C. His/her share passes to the surviving tenant, regardless of
what their will says
D. the asset must be sold and the estate gets 1/2 the
proceeds - ANSWERS-C. His/her share passes to the
surviving tenant, regardless of what their will says
Value of Qualified Interests determined under IRC 7530 -
ANSWERS-120% of the federal midterm rate
, Appreciated assets donated to a private foundation may be
deducted from income up to what percentage? - ANSWERS-
20% of AGI
Appreciated assets donated to a public charity may be
deducted from income up to what percentage? - ANSWERS-
30% of AGI
Cash donated to a private foundation may be deducted from
income up to what percentage? - ANSWERS-30% of AGI
Cash donated to a public charity may be deducted from
income up to what percentage? - ANSWERS-60% of AGI
What is the two (2) main differences between a CRUT and a
CRAT? - ANSWERS-CRUT = ability to make additions in later
year, and fluctuation of fixed income percentage based of
FMV
CRAT = NO additions in later year
Crummey power created what kind of interest? - ANSWERS-
Present interest
