CANNON TRUST SCHOOL I EXAM 2
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ A QTIP trust does which of the following?
Allows the testator to appoint beneficiaries after death of surviving
spouse.
Gives the spouse only a limited testamentary power of appointment.
Allows the spouse an unlimited right of withdrawal.
Allows the spouse an inter vivos right to appoint $100,000 per year..
Answer: Allows the testator to appoint beneficiaries after death of
surviving spouse.
◉ In a QTIP marital trust, the surviving spouse may be given various
powers of appointment. Which of the following may be included for
the surviving spouse to have maximum control available as a
beneficiary of a QTIP while retaining election options for the
executor?
,Only limited powers of appointment.
Limited powers and the 5×5 power.
Only general powers of appointment, except the 5x5 power.
General powers including the 5x5 power.. Answer: Limited powers
and the 5×5 power.
◉ Which of the following is NOT required in a QTIP trust?
All net accounting income to be paid to the surviving spouse at least
annually.
Principal to be distributed at the trustee's discretion for the
surviving spouse's health
education support or maintenance.
The surviving spouse has the ability to require the trustee to convert
non-income producing assets to income productive assets.
,The surviving spouse may be the only permissible distributee during
their lifetime.. Answer: Principal to be distributed at the trustee's
discretion for the surviving spouse's health
education support or maintenance.
◉ Which of the following trusts can qualify for the marital deduction
and allow the testator to control disposition of corpus after the
surviving spouse's death?
Estate trust
Outright bequest
GPA marital trust
QTIP trust. Answer: QTIP trust
◉ Which of the following is NOT a characteristic of a qualified
domestic trust (QDT)?
At least one trustee must be a U.S. citizen or domestic corporation.
, The executor of the donor's estate must irrevocably elect to have the
trust treated at a QDT.
The U.S. trustee must have the right to withhold federal estate taxes
from any distribution.
Upon termination of the trust, the U.S. trustee must file a final
accounting with the IRS and a tax of 55% the current fair market
value of the trust assets shall be assessed.. Answer: Upon
termination of the trust, the U.S. trustee must file a final accounting
with the IRS and a tax of 55% the current fair market value of the
trust assets shall be assessed.
◉ The decedent spouse dies with $18,000,000 and leaves their
estate into a marital and credit shelter trust with the standard
optimum marital formula for her surviving spouse.
She had made $3,000,000 in taxable gifts during life and dies when
her Basic
Exclusion amount is $10,000,000. How much goes into the Marital
Trust?
$3,000,000
$7,000,000
ASSESSMENT TEST 2026 TESTED QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ A QTIP trust does which of the following?
Allows the testator to appoint beneficiaries after death of surviving
spouse.
Gives the spouse only a limited testamentary power of appointment.
Allows the spouse an unlimited right of withdrawal.
Allows the spouse an inter vivos right to appoint $100,000 per year..
Answer: Allows the testator to appoint beneficiaries after death of
surviving spouse.
◉ In a QTIP marital trust, the surviving spouse may be given various
powers of appointment. Which of the following may be included for
the surviving spouse to have maximum control available as a
beneficiary of a QTIP while retaining election options for the
executor?
,Only limited powers of appointment.
Limited powers and the 5×5 power.
Only general powers of appointment, except the 5x5 power.
General powers including the 5x5 power.. Answer: Limited powers
and the 5×5 power.
◉ Which of the following is NOT required in a QTIP trust?
All net accounting income to be paid to the surviving spouse at least
annually.
Principal to be distributed at the trustee's discretion for the
surviving spouse's health
education support or maintenance.
The surviving spouse has the ability to require the trustee to convert
non-income producing assets to income productive assets.
,The surviving spouse may be the only permissible distributee during
their lifetime.. Answer: Principal to be distributed at the trustee's
discretion for the surviving spouse's health
education support or maintenance.
◉ Which of the following trusts can qualify for the marital deduction
and allow the testator to control disposition of corpus after the
surviving spouse's death?
Estate trust
Outright bequest
GPA marital trust
QTIP trust. Answer: QTIP trust
◉ Which of the following is NOT a characteristic of a qualified
domestic trust (QDT)?
At least one trustee must be a U.S. citizen or domestic corporation.
, The executor of the donor's estate must irrevocably elect to have the
trust treated at a QDT.
The U.S. trustee must have the right to withhold federal estate taxes
from any distribution.
Upon termination of the trust, the U.S. trustee must file a final
accounting with the IRS and a tax of 55% the current fair market
value of the trust assets shall be assessed.. Answer: Upon
termination of the trust, the U.S. trustee must file a final accounting
with the IRS and a tax of 55% the current fair market value of the
trust assets shall be assessed.
◉ The decedent spouse dies with $18,000,000 and leaves their
estate into a marital and credit shelter trust with the standard
optimum marital formula for her surviving spouse.
She had made $3,000,000 in taxable gifts during life and dies when
her Basic
Exclusion amount is $10,000,000. How much goes into the Marital
Trust?
$3,000,000
$7,000,000
