CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A donor establishes a charitable remainder unitrust that will pay him 6%
annually. He funds it with a highly appreciated, valuable stock holding,
purchased by his grandfather. His income tax charitable deduction is
which of the following?
A. Donor's cost basis up to 100% of the donor's adjusted gross income.
B. Fair market value contributed less the actuarial value of his retained
life interest, up to 50% of the donor's adjusted gross income.
C. Fair market value contributed less the actuarial value of his retained
life interest, up to 30% of the donor's adjusted gross income.
D. Fair market value contributed up to 30% of the donor's adjusted gross
income. - ANSWERS-Fair market value contributed less the actuarial
value of his retained life interest, up to 30% of the donor's adjusted gross
income.
Appreciated assets donated to a public charity may be deducted from
income up to which of the following amounts?
A. 30% of adjusted gross income (AGI)
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PAGE
1
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
B. 60% of adjusted gross income (AGI)
C. 30% of the value of the assets donated
D. 60% of the value of the assets donated - ANSWERS-30% of adjusted
gross income (AGI)
A qualified personal residence trust has which of the following results?
A. The grantor may continue to live in the residence.
B. If the grantor survives the term of the trust, gift tax is due at
termination.
C. The shorter the term of the trust, the greater the discount for gift tax
purposes.
D. At termination, the property reverts back to the grantor. -
ANSWERS-The grantor may continue to live in the residence.
A client dies with assets in his own name. As executor of the estate,
which of the following pieces of information is LEAST important to
you?
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PAGE
2
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A. Value of taxable gifts made, if any.
B. Date of death value of the taxable estate. coo
C. Date of death value of each asset.
D. Decedent's cost basis on assets. - ANSWERS-Decedent's cost basis
on assets.
Gifts to which of the following trusts will NOT qualify as a gift of
present interest for the annual exclusion?
A. Irrevocable trusts with Crummey provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts - ANSWERS-Complex trusts
Which of the following is an income tax benefit of a partnership form of
business ownership?
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3
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A. Ordinary losses pass through to the partners.
B. Income is taxed to the partnership.
C. Partnership income is taxed in the year of receipt rather than on the
fiscal year of the partnership.
D. Retained earnings defer income recognition. - ANSWERS-Ordinary
losses pass through to the partners.
Your client has invested $100,000 in a limited partnership. The limited
partnership later has a problem and is assessed claim of $1,000,000.
What is your client's maximum financial exposure to the claim?
A. $0
B. $100,000
C. $1,000,000
D. Unlimited - ANSWERS-$100,000
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PAGE
4
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A donor establishes a charitable remainder unitrust that will pay him 6%
annually. He funds it with a highly appreciated, valuable stock holding,
purchased by his grandfather. His income tax charitable deduction is
which of the following?
A. Donor's cost basis up to 100% of the donor's adjusted gross income.
B. Fair market value contributed less the actuarial value of his retained
life interest, up to 50% of the donor's adjusted gross income.
C. Fair market value contributed less the actuarial value of his retained
life interest, up to 30% of the donor's adjusted gross income.
D. Fair market value contributed up to 30% of the donor's adjusted gross
income. - ANSWERS-Fair market value contributed less the actuarial
value of his retained life interest, up to 30% of the donor's adjusted gross
income.
Appreciated assets donated to a public charity may be deducted from
income up to which of the following amounts?
A. 30% of adjusted gross income (AGI)
END OF
PAGE
1
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
B. 60% of adjusted gross income (AGI)
C. 30% of the value of the assets donated
D. 60% of the value of the assets donated - ANSWERS-30% of adjusted
gross income (AGI)
A qualified personal residence trust has which of the following results?
A. The grantor may continue to live in the residence.
B. If the grantor survives the term of the trust, gift tax is due at
termination.
C. The shorter the term of the trust, the greater the discount for gift tax
purposes.
D. At termination, the property reverts back to the grantor. -
ANSWERS-The grantor may continue to live in the residence.
A client dies with assets in his own name. As executor of the estate,
which of the following pieces of information is LEAST important to
you?
END OF
PAGE
2
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A. Value of taxable gifts made, if any.
B. Date of death value of the taxable estate. coo
C. Date of death value of each asset.
D. Decedent's cost basis on assets. - ANSWERS-Decedent's cost basis
on assets.
Gifts to which of the following trusts will NOT qualify as a gift of
present interest for the annual exclusion?
A. Irrevocable trusts with Crummey provisions
B. 2503(c) trusts for minors
C. Simple trusts
D. Complex trusts - ANSWERS-Complex trusts
Which of the following is an income tax benefit of a partnership form of
business ownership?
END OF
PAGE
3
, CANNON TRUST LATEST
SCHOOL 1 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
A. Ordinary losses pass through to the partners.
B. Income is taxed to the partnership.
C. Partnership income is taxed in the year of receipt rather than on the
fiscal year of the partnership.
D. Retained earnings defer income recognition. - ANSWERS-Ordinary
losses pass through to the partners.
Your client has invested $100,000 in a limited partnership. The limited
partnership later has a problem and is assessed claim of $1,000,000.
What is your client's maximum financial exposure to the claim?
A. $0
B. $100,000
C. $1,000,000
D. Unlimited - ANSWERS-$100,000
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PAGE
4
