CANNON FINANCIAL INSTITUTE CFIRS
SAMPLE SET 2026 NEWEST ACTUAL EXAMS
QUESTIONS AND VERIFIED ANSWERS
"When the terms of an irrevocable living trust become illegal, imprudent, or impossible
with which to comply, the trustee (as with a testamentary trust):
a. Should petition a court of proper jurisdiction for instruction as to the proper course of
action.
b. Is protected in following regulatory guidance provided by the trustee's primary
regulator.
c. Is protected in following directions of a majority of the beneficiaries.
" - CORRECT ANSWES -- A
"As executor of an estate, a bank must take control of:
a. Only such property as contained in schedule A attached to the will.
b. All real and personal property owned by the testator at death.
c. All personal property owned by the decedent at the time of their death.
d. All real and personal property owned by the deceased except the personal residence
occupied by the surviving spouse.
" - CORRECT ANSWES -- B
"A testamentary trust is established by:
a. The terms of a decedent's will.
b. A deposit of one's own money in his name as trustee for another.
c. The settlor during his/her lifetime.
d. Order of the appropriate court.
" - CORRECT ANSWES -- A
"As an executor of an estate, a Bank Trust Department typically:
a. Does not have a fiduciary duty.
b. Is charged with the responsibility to marshal assets, pay debts, and make
distributions per terms of the will.
,c. Can only serve if granted special permission by the regulatory authorities in addition
to the bank's general fiduciary powers.
d. Must have capital in excess of the normal capital required to exercise general trust
powers.
" - CORRECT ANSWES -- B
"An irrevocable trust can be terminated prior to its normal distribution date:
a. If an adult beneficiary requests it of the trustee.
b. If a beneficiary no longer wishes the monies since they are in a high tax bracket.
c. Under court order with unanimous consent of all beneficiaries, including
representation for minors and unborns, provided the purpose of the trust is satisfied.
d. In the discretion of the trustee with the approval of the auditor.
" - CORRECT ANSWES -- C
"Trustees have a fiduciary duty to:
a. Communicate with beneficiaries.
b. Make trust assets productive at least equal to the S&P 500.
c. Invest funds in accordance with the beneficiaries' wishes.
d. Be profitable.
" - CORRECT ANSWES -- A
"An inter vivos trust is one that:
a. Is set up during the grantor's lifetime.
b. Is created by the last will and testament of the grantor.
c. Must be revocable by the grantor during his/her lifetime.
d. Must be irrevocable by the grantor during his/her lifetime.
" - CORRECT ANSWES -- A
"In many jurisdictions, unless the power to revoke is specified, the trust is said to be:
a. Void.
b. Amendable.
c. Revocable.
d. Irrevocable.
" - CORRECT ANSWES -- D
"If a person dies, intestate, they died:
,a. With a bankrupt estate.
b. Without a valid will.
c. Without a surviving spouse.
d. In transit between two states.
" - CORRECT ANSWES -- B
"An individual holding a testamentary general power of appointment will be taxed on
which of the following:
a. A percentage of the income only if the power is exercised.
b. A fraction or percentage of both the ordinary income and capital gains for the period
of time the power is available but not exercised.
c. The full value of the property subject to the power will be included in the holder's
estate.
d. A fraction or percentage of both the ordinary income and capital gains for the period
of time the power is available only if exercised.
" - CORRECT ANSWES -- C
"An estate tax return (Form 706) is due:
a. 90 days from date of death.
b. 9 months from date of death.
c. By April 15th of the year following date of death.
d. Within a reasonable time based on the size and complexity of the estate.
" - CORRECT ANSWES -- B
"A decedent owns $400,000 in her own name, a $150,000 home jointly with her spouse,
and ownership of $100,000 life insurance policy with the children as beneficiaries. The
amount of her gross estate is:
a. $250,000
b. $400,000
c. $575,000
d. $650,000
" - CORRECT ANSWES -- C
"In making an encroachment for the beneficiary, the trustee should:
a. Follow directions of the beneficiary.
b. Refer to the trust instrument.
c. Seek concurrence of the other beneficiaries.
d. Ensure that income is sufficient to cover the encroachment.
, " - CORRECT ANSWES -- B
"A type of a power of attorney which survives even though the principal may become
incapacitated is:
a. Common law power of attorney.
b. Civil law power of attorney.
c. Durable power of attorney.
d. Uniform power of attorney.
" - CORRECT ANSWES -- C
"The following property is NOT included in the gross estate of a decedent:
a. Life insurance transferred within 3 years prior to the date of a death.
b. An irrevocable trust established by the decedent in which all income is retained for
life.
c. A $24,800 gift in fee simple using both spouse's annual gift tax exclusion.
d. Funds in a qualified retirement plan of the decedent with a named beneficiary.
" - CORRECT ANSWES -- C
""When funds are deposited to the trust, the beneficiaries are to be notified of their right
to withdraw the contribution for a period of 30 days. If they do not request a withdrawal
in writing within 30 days of their notification, their power to withdraw lapses and the
trustee may invest the funds as they see fit." This is an example of a:
a. Spendthrift provision.
b. Limited power of appointment.
c. Crummey power.
d. Five by five power.
" - CORRECT ANSWES -- C
"In securities lending, the securities should be marked to market:
a. Only at inception of the loan.
b. Daily.
c. Weekly.
d. As deemed appropriate by the agent bank.
" - CORRECT ANSWES -- B
"In security lending, the investment of cash collateral is the responsibility of the:
SAMPLE SET 2026 NEWEST ACTUAL EXAMS
QUESTIONS AND VERIFIED ANSWERS
"When the terms of an irrevocable living trust become illegal, imprudent, or impossible
with which to comply, the trustee (as with a testamentary trust):
a. Should petition a court of proper jurisdiction for instruction as to the proper course of
action.
b. Is protected in following regulatory guidance provided by the trustee's primary
regulator.
c. Is protected in following directions of a majority of the beneficiaries.
" - CORRECT ANSWES -- A
"As executor of an estate, a bank must take control of:
a. Only such property as contained in schedule A attached to the will.
b. All real and personal property owned by the testator at death.
c. All personal property owned by the decedent at the time of their death.
d. All real and personal property owned by the deceased except the personal residence
occupied by the surviving spouse.
" - CORRECT ANSWES -- B
"A testamentary trust is established by:
a. The terms of a decedent's will.
b. A deposit of one's own money in his name as trustee for another.
c. The settlor during his/her lifetime.
d. Order of the appropriate court.
" - CORRECT ANSWES -- A
"As an executor of an estate, a Bank Trust Department typically:
a. Does not have a fiduciary duty.
b. Is charged with the responsibility to marshal assets, pay debts, and make
distributions per terms of the will.
,c. Can only serve if granted special permission by the regulatory authorities in addition
to the bank's general fiduciary powers.
d. Must have capital in excess of the normal capital required to exercise general trust
powers.
" - CORRECT ANSWES -- B
"An irrevocable trust can be terminated prior to its normal distribution date:
a. If an adult beneficiary requests it of the trustee.
b. If a beneficiary no longer wishes the monies since they are in a high tax bracket.
c. Under court order with unanimous consent of all beneficiaries, including
representation for minors and unborns, provided the purpose of the trust is satisfied.
d. In the discretion of the trustee with the approval of the auditor.
" - CORRECT ANSWES -- C
"Trustees have a fiduciary duty to:
a. Communicate with beneficiaries.
b. Make trust assets productive at least equal to the S&P 500.
c. Invest funds in accordance with the beneficiaries' wishes.
d. Be profitable.
" - CORRECT ANSWES -- A
"An inter vivos trust is one that:
a. Is set up during the grantor's lifetime.
b. Is created by the last will and testament of the grantor.
c. Must be revocable by the grantor during his/her lifetime.
d. Must be irrevocable by the grantor during his/her lifetime.
" - CORRECT ANSWES -- A
"In many jurisdictions, unless the power to revoke is specified, the trust is said to be:
a. Void.
b. Amendable.
c. Revocable.
d. Irrevocable.
" - CORRECT ANSWES -- D
"If a person dies, intestate, they died:
,a. With a bankrupt estate.
b. Without a valid will.
c. Without a surviving spouse.
d. In transit between two states.
" - CORRECT ANSWES -- B
"An individual holding a testamentary general power of appointment will be taxed on
which of the following:
a. A percentage of the income only if the power is exercised.
b. A fraction or percentage of both the ordinary income and capital gains for the period
of time the power is available but not exercised.
c. The full value of the property subject to the power will be included in the holder's
estate.
d. A fraction or percentage of both the ordinary income and capital gains for the period
of time the power is available only if exercised.
" - CORRECT ANSWES -- C
"An estate tax return (Form 706) is due:
a. 90 days from date of death.
b. 9 months from date of death.
c. By April 15th of the year following date of death.
d. Within a reasonable time based on the size and complexity of the estate.
" - CORRECT ANSWES -- B
"A decedent owns $400,000 in her own name, a $150,000 home jointly with her spouse,
and ownership of $100,000 life insurance policy with the children as beneficiaries. The
amount of her gross estate is:
a. $250,000
b. $400,000
c. $575,000
d. $650,000
" - CORRECT ANSWES -- C
"In making an encroachment for the beneficiary, the trustee should:
a. Follow directions of the beneficiary.
b. Refer to the trust instrument.
c. Seek concurrence of the other beneficiaries.
d. Ensure that income is sufficient to cover the encroachment.
, " - CORRECT ANSWES -- B
"A type of a power of attorney which survives even though the principal may become
incapacitated is:
a. Common law power of attorney.
b. Civil law power of attorney.
c. Durable power of attorney.
d. Uniform power of attorney.
" - CORRECT ANSWES -- C
"The following property is NOT included in the gross estate of a decedent:
a. Life insurance transferred within 3 years prior to the date of a death.
b. An irrevocable trust established by the decedent in which all income is retained for
life.
c. A $24,800 gift in fee simple using both spouse's annual gift tax exclusion.
d. Funds in a qualified retirement plan of the decedent with a named beneficiary.
" - CORRECT ANSWES -- C
""When funds are deposited to the trust, the beneficiaries are to be notified of their right
to withdraw the contribution for a period of 30 days. If they do not request a withdrawal
in writing within 30 days of their notification, their power to withdraw lapses and the
trustee may invest the funds as they see fit." This is an example of a:
a. Spendthrift provision.
b. Limited power of appointment.
c. Crummey power.
d. Five by five power.
" - CORRECT ANSWES -- C
"In securities lending, the securities should be marked to market:
a. Only at inception of the loan.
b. Daily.
c. Weekly.
d. As deemed appropriate by the agent bank.
" - CORRECT ANSWES -- B
"In security lending, the investment of cash collateral is the responsibility of the:
