Cannon Trust School 1
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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
A simple trust earned $27,000 in dividends. It paid $4,000 $25,000
in trustee fees, one-half
from income and one-half from principal. Trust
accounting income is which of the following?
- $0
- $23,000
- $25,000
- $27,000
If the Trust Document is silent with respect to a certain Principal and Income Law of the State
cash transaction, the Trust Administrator should first look
to which of the following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
,When determining a long-term sustainable rate of return 3-5%
for a unitrust payout, which of the following best
represents the range of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an example of tangible personal Gold bar
property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
Which of the following is an example of tangible personal Jewelry
property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following this transfer, which of C has a remainder interest.
the following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of survivorship, when one Her share passes to the surviving joint tenant regardless of what her will says.
tenant dies which of the following best describes the
result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her
will.
- Her share passes to the surviving joint tenant regardless
of what her will says.
- The asset must be sold and the estate gets 1/2 of the
proceeds.
, A decedent owns $400,000 in his own name, a $200,000 $400,000
home in joint tenancy with his spouse and a $100,000 life
insurance policy with the children as beneficiaries. Which
of the following is the amount passing through probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
In cutting down a tree, which of the following occurs? Real property is converted to personal property.
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
- There is no conversion, the tree remains real property.
Which of the following transfers are includable in the Gift of $8,000 cash value life insurance policy to son.
gross estate of the donor if made within 3 years of
death?
- Gift of $8,000 cash value life insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely held company to
parent.
Which of the following can be deducted either on the Medical expenses relating to the decedent's last illness.
decedent's final 1040 income tax return or on the Form
706 Estate Tax return?
- Funeral expenses.
- Medical expenses relating to the decedent's last illness.
- Court costs in probating the estate.
- Executor's administration expenses.
A client made lifetime taxable gifts of $800,000 ten years $3,800,000
prior to her death. She had an estate worth $3,000,000 at
death. The value of the property gifted during her lifetime
is worth $1,600,000 at her death. On which of the
following is her tentative tax figured prior to applying the
applicable exclusion amount?
- $800,000
- $3,000,000
- $3,800,000
- $4,600,000
10 studiers recently Leave the first rating
Students also studied
Flashcard sets Study guides
CTFA - Practice Exam #1 Questions Cannon Trust School 1 - Exam Revie... Cannon Trust School I - Knowledge ... Cannon
96 terms 103 terms 102 terms 120 term
P regan_seliger Preview ebelanger2 Preview ebelanger2 Preview lind
Terms in this set (164) 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
A simple trust earned $27,000 in dividends. It paid $4,000 $25,000
in trustee fees, one-half
from income and one-half from principal. Trust
accounting income is which of the following?
- $0
- $23,000
- $25,000
- $27,000
If the Trust Document is silent with respect to a certain Principal and Income Law of the State
cash transaction, the Trust Administrator should first look
to which of the following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
,When determining a long-term sustainable rate of return 3-5%
for a unitrust payout, which of the following best
represents the range of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an example of tangible personal Gold bar
property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
Which of the following is an example of tangible personal Jewelry
property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following this transfer, which of C has a remainder interest.
the following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of survivorship, when one Her share passes to the surviving joint tenant regardless of what her will says.
tenant dies which of the following best describes the
result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her
will.
- Her share passes to the surviving joint tenant regardless
of what her will says.
- The asset must be sold and the estate gets 1/2 of the
proceeds.
, A decedent owns $400,000 in his own name, a $200,000 $400,000
home in joint tenancy with his spouse and a $100,000 life
insurance policy with the children as beneficiaries. Which
of the following is the amount passing through probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
In cutting down a tree, which of the following occurs? Real property is converted to personal property.
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
- There is no conversion, the tree remains real property.
Which of the following transfers are includable in the Gift of $8,000 cash value life insurance policy to son.
gross estate of the donor if made within 3 years of
death?
- Gift of $8,000 cash value life insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely held company to
parent.
Which of the following can be deducted either on the Medical expenses relating to the decedent's last illness.
decedent's final 1040 income tax return or on the Form
706 Estate Tax return?
- Funeral expenses.
- Medical expenses relating to the decedent's last illness.
- Court costs in probating the estate.
- Executor's administration expenses.
A client made lifetime taxable gifts of $800,000 ten years $3,800,000
prior to her death. She had an estate worth $3,000,000 at
death. The value of the property gifted during her lifetime
is worth $1,600,000 at her death. On which of the
following is her tentative tax figured prior to applying the
applicable exclusion amount?
- $800,000
- $3,000,000
- $3,800,000
- $4,600,000
