CANNON TRUST LATEST
SCHOOL II EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
In 2023, the annual gift tax exclusion is: - ANSWERS-$17,000
What are the requirements to make QTIP election? - ANSWERS-Only
to spouse, income to spouse at least annually
Why is QTIP includable in surviving spouse's Estate? - ANSWERS-
Because election was made.
To maximize both spouses use of the generation skipping exemption in
an optimal marital deduction plan, what type of marital bequest must be
used? - ANSWERS-Qualified terminable interest property trust
A grandparent establishes an irrevocable trust with income to her child
for his life and then to his children. She funds the trust with assets
valued at $4,000,000 and allocates $1,000,000 of her lifetime GST
exemption. The inclusion ratio for this trust is - ANSWERS-75%
Which is the best definition of the "applicable rate" for GSTT? -
ANSWERS-Inclusion Ratio X Maximum Estate Tax Rate
END OF
PAGE 1
, CANNON TRUST LATEST
SCHOOL II EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is the maximum amount that an individual can shelter from federal
estate tax (other than the marital or charitable deductions)? -
ANSWERS-$10,000,000 as indexed for inflation.
The purpose of the valuation discount in an FLP or LLC is for: -
ANSWERS-Federal gift and estate tax purposes.
In order to establish the Deceased Spouse's Unused Exemption Amount
(DSUEA) for the surviving spouse, which of the following must be true
at the first spouse's death? - ANSWERS-A timely filed estate tax return
was filed.
Pecuniary Formulas - ANSWERS-formula Defines
Bonds that can be traded for stock are known as - ANSWERS-
Convertible Bonds
END OF
PAGE 2
SCHOOL II EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
In 2023, the annual gift tax exclusion is: - ANSWERS-$17,000
What are the requirements to make QTIP election? - ANSWERS-Only
to spouse, income to spouse at least annually
Why is QTIP includable in surviving spouse's Estate? - ANSWERS-
Because election was made.
To maximize both spouses use of the generation skipping exemption in
an optimal marital deduction plan, what type of marital bequest must be
used? - ANSWERS-Qualified terminable interest property trust
A grandparent establishes an irrevocable trust with income to her child
for his life and then to his children. She funds the trust with assets
valued at $4,000,000 and allocates $1,000,000 of her lifetime GST
exemption. The inclusion ratio for this trust is - ANSWERS-75%
Which is the best definition of the "applicable rate" for GSTT? -
ANSWERS-Inclusion Ratio X Maximum Estate Tax Rate
END OF
PAGE 1
, CANNON TRUST LATEST
SCHOOL II EXAM
QUESTIONS AND
ANSWERS 2026 - 2027
What is the maximum amount that an individual can shelter from federal
estate tax (other than the marital or charitable deductions)? -
ANSWERS-$10,000,000 as indexed for inflation.
The purpose of the valuation discount in an FLP or LLC is for: -
ANSWERS-Federal gift and estate tax purposes.
In order to establish the Deceased Spouse's Unused Exemption Amount
(DSUEA) for the surviving spouse, which of the following must be true
at the first spouse's death? - ANSWERS-A timely filed estate tax return
was filed.
Pecuniary Formulas - ANSWERS-formula Defines
Bonds that can be traded for stock are known as - ANSWERS-
Convertible Bonds
END OF
PAGE 2
