CANNON TRUST LATEST
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is the trustee's duty regarding tax planning?
To avoid all taxes
To consider tax consequences in administration
To delegate tax planning to beneficiaries
To ignore tax implications - ANSWERS-To consider tax consequences
in administration
Which type of trust is used to fund education expenses?
529 plan trust
Charitable remainder trust
Special needs trust
Dynasty trust - ANSWERS-529 plan trust
What is the purpose of the Uniform Trust Decanting Act?
To terminate a trust
To transfer assets to a new trust with different terms
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1
, CANNON TRUST LATEST
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
To appoint a successor trustee
To distribute all trust assets - ANSWERS-To transfer assets to a new
trust with different terms
What is the trustee's duty when distributing trust assets?
To distribute equally to all beneficiaries
To follow the trust's terms and act impartially
To prioritize income beneficiaries
To distribute all assets immediately - ANSWERS-To follow the trust's
terms and act impartially
What is the tax treatment of a trust's charitable contributions?
Non-deductible
Deductible under IRC §642(c)
Taxed to the beneficiary
Deductible only for grantor trusts - ANSWERS-Deductible under IRC
§642(c)
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PAGE
2
, CANNON TRUST LATEST
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is a revocable trust's primary advantage?
Avoiding estate taxes
Avoiding probate
Protecting assets from creditors
Providing income to charities - ANSWERS-Avoiding probate
What is the purpose of a trust's spendthrift provision?
To allow unlimited distributions
To protect assets from beneficiary creditors
To minimize income taxes
To appoint a successor trustee - ANSWERS-To protect assets from
beneficiary creditors
Which IRS code section governs the GST tax?
IRC §2631
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PAGE
3
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is the trustee's duty regarding tax planning?
To avoid all taxes
To consider tax consequences in administration
To delegate tax planning to beneficiaries
To ignore tax implications - ANSWERS-To consider tax consequences
in administration
Which type of trust is used to fund education expenses?
529 plan trust
Charitable remainder trust
Special needs trust
Dynasty trust - ANSWERS-529 plan trust
What is the purpose of the Uniform Trust Decanting Act?
To terminate a trust
To transfer assets to a new trust with different terms
END OF
PAGE
1
, CANNON TRUST LATEST
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
To appoint a successor trustee
To distribute all trust assets - ANSWERS-To transfer assets to a new
trust with different terms
What is the trustee's duty when distributing trust assets?
To distribute equally to all beneficiaries
To follow the trust's terms and act impartially
To prioritize income beneficiaries
To distribute all assets immediately - ANSWERS-To follow the trust's
terms and act impartially
What is the tax treatment of a trust's charitable contributions?
Non-deductible
Deductible under IRC §642(c)
Taxed to the beneficiary
Deductible only for grantor trusts - ANSWERS-Deductible under IRC
§642(c)
END OF
PAGE
2
, CANNON TRUST LATEST
SCHOOL 2 EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is a revocable trust's primary advantage?
Avoiding estate taxes
Avoiding probate
Protecting assets from creditors
Providing income to charities - ANSWERS-Avoiding probate
What is the purpose of a trust's spendthrift provision?
To allow unlimited distributions
To protect assets from beneficiary creditors
To minimize income taxes
To appoint a successor trustee - ANSWERS-To protect assets from
beneficiary creditors
Which IRS code section governs the GST tax?
IRC §2631
END OF
PAGE
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