Cannon Trust Fundamentals Exam Questions
With Correct Answers 2026 Rated A+
Your client owns a $200,000 home in joint tenanc
y, a $15,000 car in his own name, an
$8,000 CD in his name alone, and a $100,000 life in
surance policy with a cash value of
$10,000, payable to his wife. What is the value of
his probate
estate?
A)$23,000
B)$33,000
C) $233,000
D) $333,000 - CORRECT ANSWER -A) $23,000
Which of the following is an example of tangible
personal property?
A) Gold Bar
B) Common Stock Certificate
C) Patent
D) Vacant Land - CORRECT ANSWER -A) Gold Bar
Which of the following is an example of tangible
personal property?
,A) Family Residence
B) IBM Stock
C) Jewelry
D) Rental House - CORRECT ANSWER -C) Jewelry
A to B for life, then to C. Following this transfer, which of the following is true?
A) A has a fee simple interest
B) B has revisionary interest
C) C has remainder interest
D) C has a life estate - CORRECT ANSWER -C) C has remainder interest
Under joint tenants with rights of survivorship,
when one tenant dies which of the
following best describes the result?
A) Her share passes through her will to her heirs
B) Her share passes by law to her heirs, not by will
C) Her share passes to the surviving joint tenant, regardless of will
D) Asset must be sold and estate gets 1/2 of the proceeds. - CORRECT ANSWER -C) Her share
passes to the surviving joint tenant, regardless of the will.
A decedent owns $400,000 in his own name, a $200,000 home in joint tenancy with his spouse
and a $100,000 life insurance policy with the children as beneficiaries. Which
of the following is the amount passing through probate?
, A) $0
B) $400,000
C) $500,000
D) $700,000 - CORRECT ANSWER -B) $400,000
In cutting down a tree, which of the following occurs?
A) Real property is converted to personal property
B) Personal property is converted to real property
C) Real property is converted to a fixture
D) There is no conversion, the tree remains real property. - CORRECT ANSWER -A) Real property
is converted to personal property
Which of the following statements BEST describes
the U.S. Transfer Tax System?
A) Gift taxes are on a lower rate schedule than estate taxes.
B) Estate taxes are calculated independent of taxable gifts.
C) Estate taxes are based on the value of taxable gifts and fair market value of assets owned at
death.
D) Taxable gifts that are drawn back into the estate f
or calculation of estate taxes
create double taxation. - CORRECT ANSWER -C) Estate taxes are based on the value of taxable
gifts and fair market value of assets owned at death.
Gift and Estate Taxes are unified for individuals. Which of the following best describes what that
means?
With Correct Answers 2026 Rated A+
Your client owns a $200,000 home in joint tenanc
y, a $15,000 car in his own name, an
$8,000 CD in his name alone, and a $100,000 life in
surance policy with a cash value of
$10,000, payable to his wife. What is the value of
his probate
estate?
A)$23,000
B)$33,000
C) $233,000
D) $333,000 - CORRECT ANSWER -A) $23,000
Which of the following is an example of tangible
personal property?
A) Gold Bar
B) Common Stock Certificate
C) Patent
D) Vacant Land - CORRECT ANSWER -A) Gold Bar
Which of the following is an example of tangible
personal property?
,A) Family Residence
B) IBM Stock
C) Jewelry
D) Rental House - CORRECT ANSWER -C) Jewelry
A to B for life, then to C. Following this transfer, which of the following is true?
A) A has a fee simple interest
B) B has revisionary interest
C) C has remainder interest
D) C has a life estate - CORRECT ANSWER -C) C has remainder interest
Under joint tenants with rights of survivorship,
when one tenant dies which of the
following best describes the result?
A) Her share passes through her will to her heirs
B) Her share passes by law to her heirs, not by will
C) Her share passes to the surviving joint tenant, regardless of will
D) Asset must be sold and estate gets 1/2 of the proceeds. - CORRECT ANSWER -C) Her share
passes to the surviving joint tenant, regardless of the will.
A decedent owns $400,000 in his own name, a $200,000 home in joint tenancy with his spouse
and a $100,000 life insurance policy with the children as beneficiaries. Which
of the following is the amount passing through probate?
, A) $0
B) $400,000
C) $500,000
D) $700,000 - CORRECT ANSWER -B) $400,000
In cutting down a tree, which of the following occurs?
A) Real property is converted to personal property
B) Personal property is converted to real property
C) Real property is converted to a fixture
D) There is no conversion, the tree remains real property. - CORRECT ANSWER -A) Real property
is converted to personal property
Which of the following statements BEST describes
the U.S. Transfer Tax System?
A) Gift taxes are on a lower rate schedule than estate taxes.
B) Estate taxes are calculated independent of taxable gifts.
C) Estate taxes are based on the value of taxable gifts and fair market value of assets owned at
death.
D) Taxable gifts that are drawn back into the estate f
or calculation of estate taxes
create double taxation. - CORRECT ANSWER -C) Estate taxes are based on the value of taxable
gifts and fair market value of assets owned at death.
Gift and Estate Taxes are unified for individuals. Which of the following best describes what that
means?
