Cannon Trust School 1
(2026)
1. Ned, who lives in Minnesota, owns a $150,000 classic automobile.
He would like his daughter Nellie, who lives in Colorado, to receive it
after his death. Few people know that Ned owns the car and he
wishes to it that way. the best way for Ned to transfer the
automobile to Nellie at his death is for to:: C. Create a self-declaration of trust,
re-title the car into the name of the trust and indicate a bequest in the trust document that the successor
trustee transfer the car to Nellie following his death.
2. Alfred, a divorcee, dies with a valid will leaving "my entire estate to
my issue, per stirpes with right of representation in each
generation."He is survived by his father F, two grandchildren A and
B by his deceased
daughter, and one grandchild C by his deceased son. What is the
APPROPRI-ATE distribution?: C receives more than A or B.
3. A fiduciary appointed by the court for an intestate estate?: An
administrator.
4. Bob and Sue are married and live in a common law state. They
put $100 in joint names with survivorship rights. When Sue dies,
before Bob, it has grown to $150. How much is includable in Sue's
gross estate?: $75
5. Income in Respect of a Decedent (IRD) is income which is received
after the decedent's death and which of the following is also TRUE?: B.
It would have been received by the decedent had he/she lived.
6. Your client is a U.S. citizen and her husband is an Australian
citizen. She desires to leave outright to her husband the
maximum amount possible at her death without estate tax being
imposed. How much may she leave him outright without owing estate
tax?: The applicable exclusion amount.
7. Which of the following is the most contractual, least fiduciary
relationship?
A. Guardianship
B. Trustee
C. Agency
, Cannon Trust School 1
(2026)
D. Executorship: C. Agency
8. A client dies. After preparation of the decedent's final 1040
income tax return, you notice that the client has an unused
charitable contribution carry forward of $10,000. What best
describes the status of this deduction for future use?: It is lost. The charitable
contribution carryforward may be used on the decedent's final Form 1040 (subject to the normal AGI
limitations), but any unused balance is lost at death.
, Cannon Trust School 1
(2026)
9. A fiduciary can elect a fiscal year, other than a calendar year, for
income tax reporting purposes only for what types of arrangements?:
Estates & Fully Charitable Trusts
10. What BEST describes an estate as an income tax reporting
entity?: It begins at date of death and lasts for the period of administration.
11. Who pays the income taxes on income of a simple trust?: The
beneficiaries pay the tax regardless of whether distributions are made or not, since the trust is
required to
make such distributions.
12. One of your bank's largest depositors tells you that he
does not trust lawyers, and asks you to prepare a simple
will for him, leaving
everything to his wife. What should you tell him?: You cannot prepare his will
because to do so
constitutes the unauthorized practice of law.
13. A client with highly appreciated property desires to sell
that property with minimal tax consequences and convert it to
income producing assets. You should recommend as an
appropriate alternative the following:
A. Charitable Remainder Trust
B. Charitable Lead Trust
C. Grantor Retained Income Trust
D. Revocable Living Trust: A. Charitable Remainder Trust
14. A testamentary trust is established by which of the following?
A. Terms of the decedent's will
B. Court order
C. A deposit of ones own money in his name as trustee
D. The settlor during his/her lifetime.: A. Terms of the decedent's will
15. True or False: Income pay-out of at least 5% of the initial
fair market value of the trust annually is required in a charitable
remainder annuity trust (CRAT)?: TRUE
16. Your elderly client who regularly gives to his church
, Cannon Trust School 1
(2026)
desires to transfer assets to his children and wants to make the
gift at the lowest gift tax value possible, and tis examining
options other than outright gifts. Due to his age, you are
concerned about a trust where he must outlive the term to obtain
tax
(2026)
1. Ned, who lives in Minnesota, owns a $150,000 classic automobile.
He would like his daughter Nellie, who lives in Colorado, to receive it
after his death. Few people know that Ned owns the car and he
wishes to it that way. the best way for Ned to transfer the
automobile to Nellie at his death is for to:: C. Create a self-declaration of trust,
re-title the car into the name of the trust and indicate a bequest in the trust document that the successor
trustee transfer the car to Nellie following his death.
2. Alfred, a divorcee, dies with a valid will leaving "my entire estate to
my issue, per stirpes with right of representation in each
generation."He is survived by his father F, two grandchildren A and
B by his deceased
daughter, and one grandchild C by his deceased son. What is the
APPROPRI-ATE distribution?: C receives more than A or B.
3. A fiduciary appointed by the court for an intestate estate?: An
administrator.
4. Bob and Sue are married and live in a common law state. They
put $100 in joint names with survivorship rights. When Sue dies,
before Bob, it has grown to $150. How much is includable in Sue's
gross estate?: $75
5. Income in Respect of a Decedent (IRD) is income which is received
after the decedent's death and which of the following is also TRUE?: B.
It would have been received by the decedent had he/she lived.
6. Your client is a U.S. citizen and her husband is an Australian
citizen. She desires to leave outright to her husband the
maximum amount possible at her death without estate tax being
imposed. How much may she leave him outright without owing estate
tax?: The applicable exclusion amount.
7. Which of the following is the most contractual, least fiduciary
relationship?
A. Guardianship
B. Trustee
C. Agency
, Cannon Trust School 1
(2026)
D. Executorship: C. Agency
8. A client dies. After preparation of the decedent's final 1040
income tax return, you notice that the client has an unused
charitable contribution carry forward of $10,000. What best
describes the status of this deduction for future use?: It is lost. The charitable
contribution carryforward may be used on the decedent's final Form 1040 (subject to the normal AGI
limitations), but any unused balance is lost at death.
, Cannon Trust School 1
(2026)
9. A fiduciary can elect a fiscal year, other than a calendar year, for
income tax reporting purposes only for what types of arrangements?:
Estates & Fully Charitable Trusts
10. What BEST describes an estate as an income tax reporting
entity?: It begins at date of death and lasts for the period of administration.
11. Who pays the income taxes on income of a simple trust?: The
beneficiaries pay the tax regardless of whether distributions are made or not, since the trust is
required to
make such distributions.
12. One of your bank's largest depositors tells you that he
does not trust lawyers, and asks you to prepare a simple
will for him, leaving
everything to his wife. What should you tell him?: You cannot prepare his will
because to do so
constitutes the unauthorized practice of law.
13. A client with highly appreciated property desires to sell
that property with minimal tax consequences and convert it to
income producing assets. You should recommend as an
appropriate alternative the following:
A. Charitable Remainder Trust
B. Charitable Lead Trust
C. Grantor Retained Income Trust
D. Revocable Living Trust: A. Charitable Remainder Trust
14. A testamentary trust is established by which of the following?
A. Terms of the decedent's will
B. Court order
C. A deposit of ones own money in his name as trustee
D. The settlor during his/her lifetime.: A. Terms of the decedent's will
15. True or False: Income pay-out of at least 5% of the initial
fair market value of the trust annually is required in a charitable
remainder annuity trust (CRAT)?: TRUE
16. Your elderly client who regularly gives to his church
, Cannon Trust School 1
(2026)
desires to transfer assets to his children and wants to make the
gift at the lowest gift tax value possible, and tis examining
options other than outright gifts. Due to his age, you are
concerned about a trust where he must outlive the term to obtain
tax
