TENNESSEE REAL ESTATE EXAM 2025
QUESTIONS AND ANSWERS
Revocable Trust - ANS can be changed by the trustor at any time.
There are two types of living trusts: - ANS revocable and irrevocable.
Irrevocable Trust - ANS Irrevocable trusts are just what they say on the tin: irrevocable. With
very few exceptions, once you put your property in an irrevocable trust, you can't touch it. It's
no longer yours, it's the trustee's, and then the beneficiary's.
Testamentary Trust - ANS A testamentary trust is created by a testament, or will
What is the main difference between living and testamentary trusts? - ANS Living trusts take
effect while the trustor is still alive. Testamentary trusts take effect after the trustor's death.
Land trusts can be used for all kinds of things, including: - ANS Avoiding probate
Shielding a property from liens or judgments against the trustor
Preventing the partition of the land
Avoiding marital co-interest
Buying land anonymously
Community Land Trust - ANS A community land trust is a parcel of land bought by a
nonprofit with the goal of creating affordable housing.
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 1
, benefiaciary - ANS the recipient of advantage or gain from an act or instrument such as a
trust, will, or insurance policy
General Partnership - ANS a business entity in which all co-owners actively share power,
liability, responsibilities, and profit
limited partnership - ANS a business entity composed of both general and limited partners
where the general partners manage the business and assume most of the risk, while the limited
partners are passive investors with limited risk
living trust - ANS a trust established by a living trustor in order to convey legal title of
property to a trustee for the benefit of a named beneficiary
Sole Proprietorship - ANS ownership of a business by a lone individual (or a married couple
acting as a single person)
legal entity - ANS a legal entity where control of some asset or property is transferred by a
grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary)
Trusts: The Three Roles - ANS 1. The creator of the trust is the trustor.
2. The person entrusted to hold and manage the assets is the trustee.
3. The individual who ultimately receives the benefits or assets of the trust is the beneficiary.
All partners assume unlimited personal liability in what type of business organization? -
ANS general partnership
Which of these function more as investors, usually playing no role in the day-to-day operation
and management of the business? - ANS Limited partners
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS
Revocable Trust - ANS can be changed by the trustor at any time.
There are two types of living trusts: - ANS revocable and irrevocable.
Irrevocable Trust - ANS Irrevocable trusts are just what they say on the tin: irrevocable. With
very few exceptions, once you put your property in an irrevocable trust, you can't touch it. It's
no longer yours, it's the trustee's, and then the beneficiary's.
Testamentary Trust - ANS A testamentary trust is created by a testament, or will
What is the main difference between living and testamentary trusts? - ANS Living trusts take
effect while the trustor is still alive. Testamentary trusts take effect after the trustor's death.
Land trusts can be used for all kinds of things, including: - ANS Avoiding probate
Shielding a property from liens or judgments against the trustor
Preventing the partition of the land
Avoiding marital co-interest
Buying land anonymously
Community Land Trust - ANS A community land trust is a parcel of land bought by a
nonprofit with the goal of creating affordable housing.
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 1
, benefiaciary - ANS the recipient of advantage or gain from an act or instrument such as a
trust, will, or insurance policy
General Partnership - ANS a business entity in which all co-owners actively share power,
liability, responsibilities, and profit
limited partnership - ANS a business entity composed of both general and limited partners
where the general partners manage the business and assume most of the risk, while the limited
partners are passive investors with limited risk
living trust - ANS a trust established by a living trustor in order to convey legal title of
property to a trustee for the benefit of a named beneficiary
Sole Proprietorship - ANS ownership of a business by a lone individual (or a married couple
acting as a single person)
legal entity - ANS a legal entity where control of some asset or property is transferred by a
grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary)
Trusts: The Three Roles - ANS 1. The creator of the trust is the trustor.
2. The person entrusted to hold and manage the assets is the trustee.
3. The individual who ultimately receives the benefits or assets of the trust is the beneficiary.
All partners assume unlimited personal liability in what type of business organization? -
ANS general partnership
Which of these function more as investors, usually playing no role in the day-to-day operation
and management of the business? - ANS Limited partners
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 2
