Personal Trust Fundamentals - Cannon || A+ Certified. 2026
Update.
Sole Ownership correct answers Fee Simple; Full and complete ctrl by a single party; No
survivorship; Subject to probate
Joint Tenancy WROS correct answers Ownership by two, or more with equal ctrl; Ownership to
the survivor or survivors equally
Tenancy by the Entirety correct answers Joint holding between spouses only; Decisions required
by both; Ownership to survivor
Tenants in Common correct answers No survivorship rights; Multiple owners with differentiated
shares; Sole ownership of a partial amount; Subject to Probate
Community Property correct answers All property obtained during marriage; Property owned at
time of marriage is considered separate
Income Beneficiaries correct answers Present Beneficiaries; May have access to income or
principal
Remainder Beneficiaries correct answers Future Beneficiaries; Receive remaining principal and
undistributed income
Tuition and Medical Expense Exclusion correct answers Qualified Transfers; Must be paid
directly to service provider; Unlimited in amount; Over and above AEA
Crummey Power correct answers Clifford D. Crummey v. Commissioner (1968); concept of
giving withdrawal rights to beneficiaries of trusts; considered present interest; 30 day period
Gross Estate correct answers Anything in which the decedent owned, controlled, or retained
Taxable Estate correct answers Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
, Intestate Successsion correct answers Dying w/o valid last will & testament
Distribution Rules of Intestate Succession correct answers State Law determines division of
property; Spousal rights exist in all states; State takes property only if there are no close family
members or claimants
Estate Administration Overview correct answers Collect, distribute, and/or invest
income/principal; Prepare Tax Returns; Report to the Court; Receive closure from the IRS and
Court; Distribute and close the estate
Administrator correct answers An individual or a trust institution appointed by a court to settle
the estate of a person who has died w/o leaving a valid will
Agent correct answers A person who acts for another person by the latter's authority
Executor correct answers An Individual/Institute nominated in a will and appointed by a court to
settle the estate of the testator
Trust correct answers A fiduciary relationship in which one person is the holder of the legal title
to property subject to an equitable obligation to keep or use the property for the benefit of
another person
Trustee correct answers An Individual/Institution that holds the legal title to property for the
benefit of someone else, who is the beneficial owner
Personal Guardian correct answers Health Care or Medical Directive Guardian over a ward
Property Guardian correct answers Protection and Management for the assets of the individual;
Financial/Investment assistance
Revocable correct answers Grantor reserves the right to augment, amend, or terminate so long as
the party is competent; CANNOT change the responsibility of the trustee without their
agreement
Durable Power of Attorney correct answers Continue through incapacity
Springing Power of Attorney correct answers Intended to be effective at incapacity
Uniform Gift to Minor's Act (UGMA) correct answers Property is transferred in the name of
someone, acting as custodian for a minor; securities, cash, life insurance, and annuities
Update.
Sole Ownership correct answers Fee Simple; Full and complete ctrl by a single party; No
survivorship; Subject to probate
Joint Tenancy WROS correct answers Ownership by two, or more with equal ctrl; Ownership to
the survivor or survivors equally
Tenancy by the Entirety correct answers Joint holding between spouses only; Decisions required
by both; Ownership to survivor
Tenants in Common correct answers No survivorship rights; Multiple owners with differentiated
shares; Sole ownership of a partial amount; Subject to Probate
Community Property correct answers All property obtained during marriage; Property owned at
time of marriage is considered separate
Income Beneficiaries correct answers Present Beneficiaries; May have access to income or
principal
Remainder Beneficiaries correct answers Future Beneficiaries; Receive remaining principal and
undistributed income
Tuition and Medical Expense Exclusion correct answers Qualified Transfers; Must be paid
directly to service provider; Unlimited in amount; Over and above AEA
Crummey Power correct answers Clifford D. Crummey v. Commissioner (1968); concept of
giving withdrawal rights to beneficiaries of trusts; considered present interest; 30 day period
Gross Estate correct answers Anything in which the decedent owned, controlled, or retained
Taxable Estate correct answers Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
, Intestate Successsion correct answers Dying w/o valid last will & testament
Distribution Rules of Intestate Succession correct answers State Law determines division of
property; Spousal rights exist in all states; State takes property only if there are no close family
members or claimants
Estate Administration Overview correct answers Collect, distribute, and/or invest
income/principal; Prepare Tax Returns; Report to the Court; Receive closure from the IRS and
Court; Distribute and close the estate
Administrator correct answers An individual or a trust institution appointed by a court to settle
the estate of a person who has died w/o leaving a valid will
Agent correct answers A person who acts for another person by the latter's authority
Executor correct answers An Individual/Institute nominated in a will and appointed by a court to
settle the estate of the testator
Trust correct answers A fiduciary relationship in which one person is the holder of the legal title
to property subject to an equitable obligation to keep or use the property for the benefit of
another person
Trustee correct answers An Individual/Institution that holds the legal title to property for the
benefit of someone else, who is the beneficial owner
Personal Guardian correct answers Health Care or Medical Directive Guardian over a ward
Property Guardian correct answers Protection and Management for the assets of the individual;
Financial/Investment assistance
Revocable correct answers Grantor reserves the right to augment, amend, or terminate so long as
the party is competent; CANNOT change the responsibility of the trustee without their
agreement
Durable Power of Attorney correct answers Continue through incapacity
Springing Power of Attorney correct answers Intended to be effective at incapacity
Uniform Gift to Minor's Act (UGMA) correct answers Property is transferred in the name of
someone, acting as custodian for a minor; securities, cash, life insurance, and annuities
