Cannon Trust School 1
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Terms in this set (260) Hide definitions
Your client owns a $200,000 home in joint tenancy, a $23,000
$15,000 car in his own name, an $8,000 CD in his name
alone, and a $100,000-life insurance policy with a cash
value of $10,000, payable to his wife. What is the value of
his probate estate?
- $23,000
- $33,000
- $223,000
- $333,000
The maximum amount of income that can be treated as Distributable Net Income (DNI)
passed through and reportable to the beneficiaries in a
given year.
A trust that requires all income to be distributed on an Simple Trust
annual basis. No corpus distribution is made. No
charitable contributions are made.
,Any trust that is not simple. Trust that allow accumulation Complex Trust
of income and distribute income on a discretionary basis.
Distributions from a trust or estate in the first _______ days 65
of the year can be treated as distribution from the
previous tax year.
Income the decedent would have received had the death Income in Respect of a Decedent (IRD)
not occurred (that would have been received by the
decedent had s/he lived) that was not property
includible on final return.
If trust have substantially the same grantor and Multiple Trust Rule
beneficiaries and they will be treated as one trust for
income tax purposes, this is referred to as the ___________
___________ ___________.
Deductions carried forward, such as charitable
deductions or losses, can be taken against final year
income, but excess deductions are lost.
Estate does not have to make quarterly estimated tax B. 2
payments for ____ years.
A. 1
B. 2
C. 3
D. 0
Which of the following is TRUE regarding death benefits B. Not subject to income tax
paid on a decedent owner's life insurance policy?
A. Not subject to estate tax
B. Not subject to income tax
C. Not subject to generation skipping tax
D. No subject to any taxation
The optimum in tax planning is to do which of the B. Attempt to have all taxpayers, whenever possible, in the lowest tax bracket.
following?
A. Pay all taxes as soon as possible
B. Attempt to have all taxpayers, whenever possible, in
the lowest tax bracket
C. Avoid including excessive information when filing
D. Use marital and charitable deduction to always
eliminate tax payment
, A decedent's estate being settle by your bank contains C. Explain that he may not purchase the car from the estate.
and antique automobile. One of the directors of your
bank indicates that he would like to buy it. You should do
which of the following?
A. Sell it to him at a bargain price and befriend him.
B. Have a qualified appraisal done and offer it to him.
C. Explain that he may not purchase the car from the
estate.
D. Arrange for a public auction at which he may buy if he
is the highest bidder.
Asset allocation plays an important role in the portfolio A. 80%
performance. Many contend that the percentage of
differential of return determined by the asset mix is
approximately:
A. 80%
B. 50%
C. 20%
D. 10%
When a fiduciary makes an investment, he faces the D. An appropriate investment goes down in value.
LEAST chance of liability when:
A. The investment is of a type which fiduciary
B. A particular investment is improper.
C. Absent authority in the instrument he trades with.
D. An appropriate investment goes down in value.
Generally, cash resulting from the sale or exchange of the B. Principal Cash
account's investment would be which of the following?
A. Income Cash
B. Principal Cash
C. Income Assets
D. Principal Assets
Leave the first rating
Students also studied
Flashcard sets Study guides
Cannon Trust School 2- Asset Mana... Cannon Trust School 1 - Exam Revie... Cannon Trust I Flashcards Trust Fu
25 terms 103 terms 117 terms 97 terms
Noah_Will48 Preview ebelanger2 Preview ktsharrow Preview zaw
Terms in this set (260) Hide definitions
Your client owns a $200,000 home in joint tenancy, a $23,000
$15,000 car in his own name, an $8,000 CD in his name
alone, and a $100,000-life insurance policy with a cash
value of $10,000, payable to his wife. What is the value of
his probate estate?
- $23,000
- $33,000
- $223,000
- $333,000
The maximum amount of income that can be treated as Distributable Net Income (DNI)
passed through and reportable to the beneficiaries in a
given year.
A trust that requires all income to be distributed on an Simple Trust
annual basis. No corpus distribution is made. No
charitable contributions are made.
,Any trust that is not simple. Trust that allow accumulation Complex Trust
of income and distribute income on a discretionary basis.
Distributions from a trust or estate in the first _______ days 65
of the year can be treated as distribution from the
previous tax year.
Income the decedent would have received had the death Income in Respect of a Decedent (IRD)
not occurred (that would have been received by the
decedent had s/he lived) that was not property
includible on final return.
If trust have substantially the same grantor and Multiple Trust Rule
beneficiaries and they will be treated as one trust for
income tax purposes, this is referred to as the ___________
___________ ___________.
Deductions carried forward, such as charitable
deductions or losses, can be taken against final year
income, but excess deductions are lost.
Estate does not have to make quarterly estimated tax B. 2
payments for ____ years.
A. 1
B. 2
C. 3
D. 0
Which of the following is TRUE regarding death benefits B. Not subject to income tax
paid on a decedent owner's life insurance policy?
A. Not subject to estate tax
B. Not subject to income tax
C. Not subject to generation skipping tax
D. No subject to any taxation
The optimum in tax planning is to do which of the B. Attempt to have all taxpayers, whenever possible, in the lowest tax bracket.
following?
A. Pay all taxes as soon as possible
B. Attempt to have all taxpayers, whenever possible, in
the lowest tax bracket
C. Avoid including excessive information when filing
D. Use marital and charitable deduction to always
eliminate tax payment
, A decedent's estate being settle by your bank contains C. Explain that he may not purchase the car from the estate.
and antique automobile. One of the directors of your
bank indicates that he would like to buy it. You should do
which of the following?
A. Sell it to him at a bargain price and befriend him.
B. Have a qualified appraisal done and offer it to him.
C. Explain that he may not purchase the car from the
estate.
D. Arrange for a public auction at which he may buy if he
is the highest bidder.
Asset allocation plays an important role in the portfolio A. 80%
performance. Many contend that the percentage of
differential of return determined by the asset mix is
approximately:
A. 80%
B. 50%
C. 20%
D. 10%
When a fiduciary makes an investment, he faces the D. An appropriate investment goes down in value.
LEAST chance of liability when:
A. The investment is of a type which fiduciary
B. A particular investment is improper.
C. Absent authority in the instrument he trades with.
D. An appropriate investment goes down in value.
Generally, cash resulting from the sale or exchange of the B. Principal Cash
account's investment would be which of the following?
A. Income Cash
B. Principal Cash
C. Income Assets
D. Principal Assets
