CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Study online at https://quizlet.com/_jd73f1
1. Does an Irrevocable Trust move out of the Yes
gross estate of the Grantor?
2. What is the current Basic Exclusion Amount $12.06 million
(BEA)?
3. Gross estate includes... (3 things) Everything that the decedent owned,
controlled, retained
4. Joint interests owned by spouses (only) are 50%/50% assumption
presumed to be what percentage during the
first estate to dies gross estate?
5. All other joint interests that do not include 100% includable in the first estate
spouses are presumed to be what percent-
age during the first estate to dies gross es-
tate?
6. What is the step up in basis for common law 1/2 step
states with tenants in common?
7. What is the step up in basis for community 1 full step
property states?
8. Which two types of gifts/deductions are un- Charitable and marital
limited?
9. When must the PR/Trustee elect for an alter- 6 months after DOD (or before)
nate valuation date?
10. DSUE = ? Deceased Spouse Unused Exclusion
11. An estate tax return form (Form 706) must be within 9 months of DOD
filed...
, CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Study online at https://quizlet.com/_jd73f1
12. What does filing an estate tax return (within Allows portability of DSUE to SS
9 months) of the DOD of the first spouse?
13. Gift splits apply to...? Spouses only
14. applicable exclusion amount (AEA) BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
15. Form 709 must be filed when... Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
16. Trust that requires mandatory distribution of Simple Trust
all income to beneficiary on annual basis, ei-
ther outright, or to custodial account
17. A power of attorney that ONLT becomes ef- Spring DPOA
fective at the time of incapacity
18. Bob and Sue are married and live in a com- $75 (50%/50% assumption of asset with
mon law state. They put in $100 in joint spouses)
names with survivorship rights. When Sue
dies, before Bob, it has grown to $150. How
much is includable in Sue's gross estate?
19. Testamentary Trusts at funding can have all A. Revocable (Right answer)
of the following EXCEPT which one of the B. More flexible in protecting children
following? than a court established guardianship
C. Sometimes tax advantaged and an as-
set protection devices
D. Set up under the terms of the de-
cedant's will
20. C. Agency
, CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Study online at https://quizlet.com/_jd73f1
Which of the following is the most contractu-
al, least fiduciary relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship
21. In the transfer A to B, B has what kind of B. Fee Simple
interest following the transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder
22. Under JTWROS, when one tenant dies which C. His/her share passes to the surviving
of the following best describes the result? tenant, regardless of what their will says
A. His/her share passes through her will to
their heirs
B. His/her share passes by law to their heirs,
not through their will
C. His/her share passes to the surviving ten-
ant, regardless of what their will says
D. the asset must be sold and the estate gets
1/2 the proceeds
23. Value of Qualified Interests determined un- 120% of the federal midterm rate
der IRC 7530
24. Appreciated assets donated to a private 20% of AGI
foundation may be deducted from income
up to what percentage?
25. 30% of AGI
Study online at https://quizlet.com/_jd73f1
1. Does an Irrevocable Trust move out of the Yes
gross estate of the Grantor?
2. What is the current Basic Exclusion Amount $12.06 million
(BEA)?
3. Gross estate includes... (3 things) Everything that the decedent owned,
controlled, retained
4. Joint interests owned by spouses (only) are 50%/50% assumption
presumed to be what percentage during the
first estate to dies gross estate?
5. All other joint interests that do not include 100% includable in the first estate
spouses are presumed to be what percent-
age during the first estate to dies gross es-
tate?
6. What is the step up in basis for common law 1/2 step
states with tenants in common?
7. What is the step up in basis for community 1 full step
property states?
8. Which two types of gifts/deductions are un- Charitable and marital
limited?
9. When must the PR/Trustee elect for an alter- 6 months after DOD (or before)
nate valuation date?
10. DSUE = ? Deceased Spouse Unused Exclusion
11. An estate tax return form (Form 706) must be within 9 months of DOD
filed...
, CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Study online at https://quizlet.com/_jd73f1
12. What does filing an estate tax return (within Allows portability of DSUE to SS
9 months) of the DOD of the first spouse?
13. Gift splits apply to...? Spouses only
14. applicable exclusion amount (AEA) BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
15. Form 709 must be filed when... Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
16. Trust that requires mandatory distribution of Simple Trust
all income to beneficiary on annual basis, ei-
ther outright, or to custodial account
17. A power of attorney that ONLT becomes ef- Spring DPOA
fective at the time of incapacity
18. Bob and Sue are married and live in a com- $75 (50%/50% assumption of asset with
mon law state. They put in $100 in joint spouses)
names with survivorship rights. When Sue
dies, before Bob, it has grown to $150. How
much is includable in Sue's gross estate?
19. Testamentary Trusts at funding can have all A. Revocable (Right answer)
of the following EXCEPT which one of the B. More flexible in protecting children
following? than a court established guardianship
C. Sometimes tax advantaged and an as-
set protection devices
D. Set up under the terms of the de-
cedant's will
20. C. Agency
, CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Study online at https://quizlet.com/_jd73f1
Which of the following is the most contractu-
al, least fiduciary relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship
21. In the transfer A to B, B has what kind of B. Fee Simple
interest following the transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder
22. Under JTWROS, when one tenant dies which C. His/her share passes to the surviving
of the following best describes the result? tenant, regardless of what their will says
A. His/her share passes through her will to
their heirs
B. His/her share passes by law to their heirs,
not through their will
C. His/her share passes to the surviving ten-
ant, regardless of what their will says
D. the asset must be sold and the estate gets
1/2 the proceeds
23. Value of Qualified Interests determined un- 120% of the federal midterm rate
der IRC 7530
24. Appreciated assets donated to a private 20% of AGI
foundation may be deducted from income
up to what percentage?
25. 30% of AGI
