Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
Your client owns a $200,000 home in joint tenancy, a $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?
A. $23,000
B. $33,000
C. $223,000
D. $333,000 - Correct Answers ✅A. $23,000
A simple trust earned $27,000 in dividends. It paid $4,000 in
trustee fees, one-half from income and one-half from
principal. Trust accounting income is which of the following?
A. $0
B. $23,000
C. $25,000
D. $27,000 - Correct Answers ✅C. $25,000
If the Trust Document is silent with respect to a certain cash
transaction, the Trust Administrator should first look to which
of the following for guidance?
A. Court of Jurisdiction
,Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
B. Principal and Income Law of the State
C. Grantor
D. OCC - Correct Answers ✅B. Principal and Income Law of
the State
When determining a long-term sustainable rate of return for a
unitrust payout, which of the following best represents the
range of high confidence payout percentages?
A. 1-2%
B. 2-3%
C. 3-5%
D. 120% of the federal midterm rate - Correct Answers ✅C.
3-5%
Which of the following is an example of tangible personal
property?
A. Gold bar
B. Common stock certificate
C. Patent
D. Vacant land - Correct Answers ✅A. Gold bar
,Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
Which of the following is an example of tangible personal
property?
A. Family residence
B. IBM stock
C. Jewelry
D. Rental house - Correct Answers ✅C. Jewelry
A to B for life, then to C. Following this transfer, which of the
following is true?
A. A has a fee simple interest.
B. B has a reversionary interest.
C. C has a remainder interest.
D. C has a life estate. - Correct Answers ✅C. C has a
remainder interest.
Under joint tenants with rights of survivorship, when one
tenant dies which of the following best describes the result?
A. Her share passes through her will to her heirs.
B. Her share passes by law to her heirs, not through her will.
, Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
C. Her share passes to the surviving joint tenant regardless of
what her will says.
D. The asset must be sold and the estate gets 1/2 of the
proceeds. - Correct Answers ✅C. Her share passes to the
surviving joint tenant regardless of what her will says.
A decedent owns $400,000 in his own name, a $200,000
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?
A. $0.
B. $400,000.
C. $500,000.
D. $700,000 - Correct Answers ✅B. $400,000.
In cutting down a tree, which of the following occurs?
A. Real property is converted to personal property.
B. Personal property is converted to real property.
C. Real property is converted to a fixture.
D. There is no conversion, the tree remains real property -
Correct Answers ✅A. Real property is converted to
personal property.
Questions and Answers (Most Recent
Version, Complete Study Material)
Your client owns a $200,000 home in joint tenancy, a $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?
A. $23,000
B. $33,000
C. $223,000
D. $333,000 - Correct Answers ✅A. $23,000
A simple trust earned $27,000 in dividends. It paid $4,000 in
trustee fees, one-half from income and one-half from
principal. Trust accounting income is which of the following?
A. $0
B. $23,000
C. $25,000
D. $27,000 - Correct Answers ✅C. $25,000
If the Trust Document is silent with respect to a certain cash
transaction, the Trust Administrator should first look to which
of the following for guidance?
A. Court of Jurisdiction
,Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
B. Principal and Income Law of the State
C. Grantor
D. OCC - Correct Answers ✅B. Principal and Income Law of
the State
When determining a long-term sustainable rate of return for a
unitrust payout, which of the following best represents the
range of high confidence payout percentages?
A. 1-2%
B. 2-3%
C. 3-5%
D. 120% of the federal midterm rate - Correct Answers ✅C.
3-5%
Which of the following is an example of tangible personal
property?
A. Gold bar
B. Common stock certificate
C. Patent
D. Vacant land - Correct Answers ✅A. Gold bar
,Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
Which of the following is an example of tangible personal
property?
A. Family residence
B. IBM stock
C. Jewelry
D. Rental house - Correct Answers ✅C. Jewelry
A to B for life, then to C. Following this transfer, which of the
following is true?
A. A has a fee simple interest.
B. B has a reversionary interest.
C. C has a remainder interest.
D. C has a life estate. - Correct Answers ✅C. C has a
remainder interest.
Under joint tenants with rights of survivorship, when one
tenant dies which of the following best describes the result?
A. Her share passes through her will to her heirs.
B. Her share passes by law to her heirs, not through her will.
, Cannon Trust School 1 – Spring Exam
Questions and Answers (Most Recent
Version, Complete Study Material)
C. Her share passes to the surviving joint tenant regardless of
what her will says.
D. The asset must be sold and the estate gets 1/2 of the
proceeds. - Correct Answers ✅C. Her share passes to the
surviving joint tenant regardless of what her will says.
A decedent owns $400,000 in his own name, a $200,000
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?
A. $0.
B. $400,000.
C. $500,000.
D. $700,000 - Correct Answers ✅B. $400,000.
In cutting down a tree, which of the following occurs?
A. Real property is converted to personal property.
B. Personal property is converted to real property.
C. Real property is converted to a fixture.
D. There is no conversion, the tree remains real property -
Correct Answers ✅A. Real property is converted to
personal property.
