Cannon Trust School 2 Exam|| Most Recent Exam
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
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Which IRS code section governs charitable remainder trusts?
IRC §664
IRC §2056
IRC §2503
IRC §2010 - ANSWER-IRC §664
What is a pour-over will?
A will that distributes assets to a trust upon death
A will that avoids probate
A will that names a charity as beneficiary
A will that appoints a trustee - ANSWER-A will that distributes
assets to a trust upon death
What is the purpose of a trust modification under the UTC?
To change the trustee without consent
To adapt the trust to changed circumstances or correct errors
To distribute all assets immediately
To avoid all taxes - ANSWER-To adapt the trust to changed
circumstances or correct errors
What is the tax treatment of a trust's administrative expenses?
Deductible only by beneficiaries
,Deductible by the trust, subject to limitations
Non-deductible
Deductible only for charitable trusts - ANSWER-Deductible by
the trust, subject to limitations
What is the purpose of a trust protector in modern trust
planning?
To manage daily trust operations
To oversee trustee actions and modify trust terms
To distribute trust income
To invest trust assets - ANSWER-To oversee trustee actions
and modify trust terms
What is the trustee's duty regarding tax planning?
To avoid all taxes
To consider tax consequences in administration
To delegate tax planning to beneficiaries
To ignore tax implications - ANSWER-To consider tax
consequences in administration
Which type of trust is used to fund education expenses?
529 plan trust
Charitable remainder trust
Special needs trust
Dynasty trust - ANSWER-529 plan trust
What is the purpose of the Uniform Trust Decanting Act?
To terminate a trust
To transfer assets to a new trust with different terms
, To appoint a successor trustee
To distribute all trust assets - ANSWER-To transfer assets to a
new trust with different terms
What is the trustee's duty when distributing trust assets?
To distribute equally to all beneficiaries
To follow the trust's terms and act impartially
To prioritize income beneficiaries
To distribute all assets immediately - ANSWER-To follow the
trust's terms and act impartially
What is the tax treatment of a trust's charitable contributions?
Non-deductible
Deductible under IRC §642(c)
Taxed to the beneficiary
Deductible only for grantor trusts - ANSWER-Deductible under
IRC §642(c)
What is a revocable trust's primary advantage?
Avoiding estate taxes
Avoiding probate
Protecting assets from creditors
Providing income to charities - ANSWER-Avoiding probate
What is the purpose of a trust's spendthrift provision?
To allow unlimited distributions
To protect assets from beneficiary creditors
To minimize income taxes
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success!! Newest Exam | Just
Released!!
Which IRS code section governs charitable remainder trusts?
IRC §664
IRC §2056
IRC §2503
IRC §2010 - ANSWER-IRC §664
What is a pour-over will?
A will that distributes assets to a trust upon death
A will that avoids probate
A will that names a charity as beneficiary
A will that appoints a trustee - ANSWER-A will that distributes
assets to a trust upon death
What is the purpose of a trust modification under the UTC?
To change the trustee without consent
To adapt the trust to changed circumstances or correct errors
To distribute all assets immediately
To avoid all taxes - ANSWER-To adapt the trust to changed
circumstances or correct errors
What is the tax treatment of a trust's administrative expenses?
Deductible only by beneficiaries
,Deductible by the trust, subject to limitations
Non-deductible
Deductible only for charitable trusts - ANSWER-Deductible by
the trust, subject to limitations
What is the purpose of a trust protector in modern trust
planning?
To manage daily trust operations
To oversee trustee actions and modify trust terms
To distribute trust income
To invest trust assets - ANSWER-To oversee trustee actions
and modify trust terms
What is the trustee's duty regarding tax planning?
To avoid all taxes
To consider tax consequences in administration
To delegate tax planning to beneficiaries
To ignore tax implications - ANSWER-To consider tax
consequences in administration
Which type of trust is used to fund education expenses?
529 plan trust
Charitable remainder trust
Special needs trust
Dynasty trust - ANSWER-529 plan trust
What is the purpose of the Uniform Trust Decanting Act?
To terminate a trust
To transfer assets to a new trust with different terms
, To appoint a successor trustee
To distribute all trust assets - ANSWER-To transfer assets to a
new trust with different terms
What is the trustee's duty when distributing trust assets?
To distribute equally to all beneficiaries
To follow the trust's terms and act impartially
To prioritize income beneficiaries
To distribute all assets immediately - ANSWER-To follow the
trust's terms and act impartially
What is the tax treatment of a trust's charitable contributions?
Non-deductible
Deductible under IRC §642(c)
Taxed to the beneficiary
Deductible only for grantor trusts - ANSWER-Deductible under
IRC §642(c)
What is a revocable trust's primary advantage?
Avoiding estate taxes
Avoiding probate
Protecting assets from creditors
Providing income to charities - ANSWER-Avoiding probate
What is the purpose of a trust's spendthrift provision?
To allow unlimited distributions
To protect assets from beneficiary creditors
To minimize income taxes
