CANNON TRUST SCHOOL III LATEST
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
A transfer of a private foundations income or assets, two or four the
benefit of a disqualified person, the subject to a penalty excise tax as:
1. A taxable expenditure.
2. An act of self dealing.
3. Prohibited distribution.
4. Unrelated business income. - ANSWERS-An act of self dealing
In January, a client purchases municipal bonds in the secondary market.
Upon maturity in December the same year, a bond purchased at a
discount generates tax exempt interest and:
1. A capital gain.
2. A capital loss.
3. Taxable interest.
4. No taxable income. - ANSWERS-A capital gain
What can a successor corporate trustee be held liable for? - ANSWERS-
Any act or failure of the predecessor individual or corporate trustee
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, CANNON TRUST SCHOOL III LATEST
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
A $10K bond is issued with a duration of 4 years. Six months later
interest rates fall by 50 basis points. With the change in interest rates, the
bond's value will change to:
1. 9600
2. 9800
3. 10200
4. 10400 - ANSWERS-10200
Amy executed a charitable lead annuity trust with your bank as trustee.
The trust terminates at the death of the survivor of Amy, her daughter,
and her grandson. The estate tax consequence is that the assets will:
1. Not be taxed at any generation.
2. Be included in Amy's estate at her death.
3. Be included in Amy's daughter's estate.
4. Be included in Amy's grandson's estate. - ANSWERS-Not be taxed at
any generation
How are capital gains treated when an asset is sold by a Grant tour to an
intentionally defective Grant or trust IDGT?
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EXAM QUESTIONS AND
ANSWERS 2026 - 2027
A transfer of a private foundations income or assets, two or four the
benefit of a disqualified person, the subject to a penalty excise tax as:
1. A taxable expenditure.
2. An act of self dealing.
3. Prohibited distribution.
4. Unrelated business income. - ANSWERS-An act of self dealing
In January, a client purchases municipal bonds in the secondary market.
Upon maturity in December the same year, a bond purchased at a
discount generates tax exempt interest and:
1. A capital gain.
2. A capital loss.
3. Taxable interest.
4. No taxable income. - ANSWERS-A capital gain
What can a successor corporate trustee be held liable for? - ANSWERS-
Any act or failure of the predecessor individual or corporate trustee
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PAGE
1
, CANNON TRUST SCHOOL III LATEST
EXAM QUESTIONS AND
ANSWERS 2026 - 2027
A $10K bond is issued with a duration of 4 years. Six months later
interest rates fall by 50 basis points. With the change in interest rates, the
bond's value will change to:
1. 9600
2. 9800
3. 10200
4. 10400 - ANSWERS-10200
Amy executed a charitable lead annuity trust with your bank as trustee.
The trust terminates at the death of the survivor of Amy, her daughter,
and her grandson. The estate tax consequence is that the assets will:
1. Not be taxed at any generation.
2. Be included in Amy's estate at her death.
3. Be included in Amy's daughter's estate.
4. Be included in Amy's grandson's estate. - ANSWERS-Not be taxed at
any generation
How are capital gains treated when an asset is sold by a Grant tour to an
intentionally defective Grant or trust IDGT?
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