Cannon Trust School 1 Questions and Correct
Answers 2026-2027 with Rationales
D
O
N
O
T
If the Trust Document is silent with respect to a certain cash
C
transaction, the Trust Administrator should first look to which of
O
the following for guidance?
PY
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC 💯ANSWER 💯Principal and Income Law of the State
Your client owns a $200,000 home in joint tenancy, a $15,000 car
in his own name, an $8,000 CD in his name alone, and a
,$100,000life insurance policy with a cash value of $10,000,
payable to his wife. What is the value of his probate estate?
- $23,000
- $33,000
- $223,000
- $333,000 💯ANSWER 💯$23,000
D
A simple trust earned $27,000 in dividends. It paid $4,000 in
O
trustee fees, one-half from income and one-half from
principal. Trust accounting income is which of the
N
following?
O
- $0
T
- $23,000
C
- $25,000
O
- $27,000 💯ANSWER 💯$25,000
PY
When determining a long-term sustainable rate of return for a
unitrust payout, which of the following best represents the range
of high confidence payout percentages?
- 1-2%
- 2-3%
- 3-5%
,- 120% of the federal midterm rate 💯ANSWER 💯3-5%
Which of the following is an example of tangible personal
property?
- Gold bar
- Common stock certificate
- Patent
D
- Vacant land 💯ANSWER 💯Gold bar
O
N
Which of the following is an example of tangible personal
O
property?
T
- Family residence
- IBM stock
C
- Jewelry
O
- Rental house 💯ANSWER 💯Jewelry
PY
A to B for life, then to C. Following this transfer, which of the
following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
, - C has a life estate. 💯ANSWER 💯C has a remainder interest.
Under joint tenants with rights of survivorship, when one tenant
dies which of the following best describes the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her will.
- Her share passes to the surviving joint tenant regardless of what
D
her will says.
O
- The asset must be sold and the estate gets 1/2 of the proceeds.
💯ANSWER 💯Her share passes to the surviving joint tenant
N
regardless of what her will says.
O
T
A decedent owns $400,000 in his own name, a $200,000 home in
C
joint tenancy with his spouse and a $100,000 life insurance policy
with the children as beneficiaries. Which of the following is the
O
amount passing through probate?
PY
- 0.
- $400,000.
- $500,000.
- $700,000. 💯ANSWER 💯$400,000
Answers 2026-2027 with Rationales
D
O
N
O
T
If the Trust Document is silent with respect to a certain cash
C
transaction, the Trust Administrator should first look to which of
O
the following for guidance?
PY
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC 💯ANSWER 💯Principal and Income Law of the State
Your client owns a $200,000 home in joint tenancy, a $15,000 car
in his own name, an $8,000 CD in his name alone, and a
,$100,000life insurance policy with a cash value of $10,000,
payable to his wife. What is the value of his probate estate?
- $23,000
- $33,000
- $223,000
- $333,000 💯ANSWER 💯$23,000
D
A simple trust earned $27,000 in dividends. It paid $4,000 in
O
trustee fees, one-half from income and one-half from
principal. Trust accounting income is which of the
N
following?
O
- $0
T
- $23,000
C
- $25,000
O
- $27,000 💯ANSWER 💯$25,000
PY
When determining a long-term sustainable rate of return for a
unitrust payout, which of the following best represents the range
of high confidence payout percentages?
- 1-2%
- 2-3%
- 3-5%
,- 120% of the federal midterm rate 💯ANSWER 💯3-5%
Which of the following is an example of tangible personal
property?
- Gold bar
- Common stock certificate
- Patent
D
- Vacant land 💯ANSWER 💯Gold bar
O
N
Which of the following is an example of tangible personal
O
property?
T
- Family residence
- IBM stock
C
- Jewelry
O
- Rental house 💯ANSWER 💯Jewelry
PY
A to B for life, then to C. Following this transfer, which of the
following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
, - C has a life estate. 💯ANSWER 💯C has a remainder interest.
Under joint tenants with rights of survivorship, when one tenant
dies which of the following best describes the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her will.
- Her share passes to the surviving joint tenant regardless of what
D
her will says.
O
- The asset must be sold and the estate gets 1/2 of the proceeds.
💯ANSWER 💯Her share passes to the surviving joint tenant
N
regardless of what her will says.
O
T
A decedent owns $400,000 in his own name, a $200,000 home in
C
joint tenancy with his spouse and a $100,000 life insurance policy
with the children as beneficiaries. Which of the following is the
O
amount passing through probate?
PY
- 0.
- $400,000.
- $500,000.
- $700,000. 💯ANSWER 💯$400,000
