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CANON TRUST SCHOOL II EXAMINATION|| VERIFIED
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
3. Allocation of the generation skipping transfer tax
exemption for an irrevocable trust subject to a taxable
termination is made by which of the following?
A. Donor (or donor's estate) at the time the trust
terminates.
B. Donee at the time the donee receives the property.
C. Donor (or donor's estate) at the time the trust is funded.
D. Donee at the time the trust is funded. - Answer-C.
Donor (or donor's estate) at the time the trust is funded.
4. The generation skipping transfer tax rules apply only to
which of the following?
A. Property left in trusts that exceed the rule against
perpetuity.
B. Property passing two or more generations below the
grantor.
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C. Family members of the decedent.
D. All persons 37 1/2 years younger than the grantor. -
Answer-B. Property passing two or more generations
below the grantor.
5. Which of the following BEST describes the rate at which
the generation skipping transfer tax is applied?
A. At varying, progressive rates according to the unified
transfer tax rate schedule applicable at the time.
B. Only at the lowest estate tax rate applicable at the time.
C. Only at the highest estate tax rate applicable at the
time.
D. Based on the size and nature of the transfer. - Answer-
C. Only at the highest estate tax rate applicable at the
time.
1. Which of the following best describes the distribution of
property of a first trust to one or more second trusts or to
modify the terms of the first trust?
A. Decanting
B. Distribution
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C. Direct Skip
D. Termination - Answer-A. Decanting
2. Each of the following may provide legal authorization to
decant a trust EXCEPT:
A. Terms of the instrument
B. Written direction by a majority of the beneficiaries
C. Uniform Trust Decanting Act
D. Uniform Trust Code - Answer-B. Written direction by a
majority of the beneficiaries
1. Bob intends to make gifts to the following. Which of the
following will qualify for the generation-skipping tax
predeceased ancestor exception?
A. The children of his living children.
B. The child of his deceased child.
C. His grandnephew (whose parents are deceased).
D. His niece, if his brother is deceased. - Answer-B. The
child of his deceased child.
CANON TRUST SCHOOL II EXAMINATION|| VERIFIED
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
3. Allocation of the generation skipping transfer tax
exemption for an irrevocable trust subject to a taxable
termination is made by which of the following?
A. Donor (or donor's estate) at the time the trust
terminates.
B. Donee at the time the donee receives the property.
C. Donor (or donor's estate) at the time the trust is funded.
D. Donee at the time the trust is funded. - Answer-C.
Donor (or donor's estate) at the time the trust is funded.
4. The generation skipping transfer tax rules apply only to
which of the following?
A. Property left in trusts that exceed the rule against
perpetuity.
B. Property passing two or more generations below the
grantor.
,2|Page
C. Family members of the decedent.
D. All persons 37 1/2 years younger than the grantor. -
Answer-B. Property passing two or more generations
below the grantor.
5. Which of the following BEST describes the rate at which
the generation skipping transfer tax is applied?
A. At varying, progressive rates according to the unified
transfer tax rate schedule applicable at the time.
B. Only at the lowest estate tax rate applicable at the time.
C. Only at the highest estate tax rate applicable at the
time.
D. Based on the size and nature of the transfer. - Answer-
C. Only at the highest estate tax rate applicable at the
time.
1. Which of the following best describes the distribution of
property of a first trust to one or more second trusts or to
modify the terms of the first trust?
A. Decanting
B. Distribution
, 3|Page
C. Direct Skip
D. Termination - Answer-A. Decanting
2. Each of the following may provide legal authorization to
decant a trust EXCEPT:
A. Terms of the instrument
B. Written direction by a majority of the beneficiaries
C. Uniform Trust Decanting Act
D. Uniform Trust Code - Answer-B. Written direction by a
majority of the beneficiaries
1. Bob intends to make gifts to the following. Which of the
following will qualify for the generation-skipping tax
predeceased ancestor exception?
A. The children of his living children.
B. The child of his deceased child.
C. His grandnephew (whose parents are deceased).
D. His niece, if his brother is deceased. - Answer-B. The
child of his deceased child.
