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Cannon Trust School II EXAM LATEST VERSION
WITH ALL QUESTIONS AND CORRECT DETAILED
SOLUTIONS JUST RELEASED THIS YEAR
Question: 1. 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 - CORRECT ANSWER✔✔B. Written direction by a majority of the
beneficiaries
Q:2. 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 - CORRECT ANSWER✔✔A. Decanting
Question: 3. All of these are valid reasons to decant a trust EXCEPT which of the following?
A. To fix drafting errors or makes ambiguous terms clear
B. To move a trust to a state with more favorable laws
C. To eliminate a charitable beneficiary's interest
D. To convert a trust to a special needs trust - CORRECT ANSWER✔✔C. To eliminate a charitable
beneficiary's interest
Question: 4. Which of the following best describes what Trustees that are most successful in
defending against abuse of discretion claims do consistently?
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A. Do not apply a process when exercising discretion, instead just consider the request and the
person
B. Apply a process when exercising discretion and document the reasons for their decisions
C. Apply a process when exercising discretion, but do not document the reasons because it
leaves written evidence
D. Do not apply a process when exercising discretion, but document the reasons - CORRECT
ANSWER✔✔B. Apply a process when exercising discretion and document the reasons for their
decisions
Question: 5. Settlor's intent is primarily expressed in the document as written guidance but
may be influenced by all of the following factors except one. Which of the following is least
influential?
A. Experience & Observation of settlor's past practices
B. Protectors or Committees created by the document
C. Letter of Wishes or Purpose statement published with the document
D. A valid need of the beneficiary even if not within the settlor's expressed intent - CORRECT
ANSWER✔✔D. A valid need of the beneficiary even if not within the settlor's expressed intent
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Question: 6. The following language, "Travel has been a huge part of my life and is something I
would do with our children if I were living; please make generous distributions for travel and
educational opportunities. Even a pleasure trip can have tremendous advantages in terms of
experience and maturity." is an example of which of the following?
A. Precatory Language
B. General Power of Appointment
C. Limited Power of Appointment
D. Mandatory Distribution - CORRECT ANSWER✔✔A. Precatory Language
Question: 7. When the document expressly states that the trustee has "Absolute or
Uncontrolled
Discretion" all of the following are true
EXCEPT which of the following?
A. Case law and the Restatement provide that these terms are not interpreted literally
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SUCCESS!
Cannon Trust School II EXAM LATEST VERSION
WITH ALL QUESTIONS AND CORRECT DETAILED
SOLUTIONS JUST RELEASED THIS YEAR
Question: 1. 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 - CORRECT ANSWER✔✔B. Written direction by a majority of the
beneficiaries
Q:2. 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 - CORRECT ANSWER✔✔A. Decanting
Question: 3. All of these are valid reasons to decant a trust EXCEPT which of the following?
A. To fix drafting errors or makes ambiguous terms clear
B. To move a trust to a state with more favorable laws
C. To eliminate a charitable beneficiary's interest
D. To convert a trust to a special needs trust - CORRECT ANSWER✔✔C. To eliminate a charitable
beneficiary's interest
Question: 4. Which of the following best describes what Trustees that are most successful in
defending against abuse of discretion claims do consistently?
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A. Do not apply a process when exercising discretion, instead just consider the request and the
person
B. Apply a process when exercising discretion and document the reasons for their decisions
C. Apply a process when exercising discretion, but do not document the reasons because it
leaves written evidence
D. Do not apply a process when exercising discretion, but document the reasons - CORRECT
ANSWER✔✔B. Apply a process when exercising discretion and document the reasons for their
decisions
Question: 5. Settlor's intent is primarily expressed in the document as written guidance but
may be influenced by all of the following factors except one. Which of the following is least
influential?
A. Experience & Observation of settlor's past practices
B. Protectors or Committees created by the document
C. Letter of Wishes or Purpose statement published with the document
D. A valid need of the beneficiary even if not within the settlor's expressed intent - CORRECT
ANSWER✔✔D. A valid need of the beneficiary even if not within the settlor's expressed intent
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Question: 6. The following language, "Travel has been a huge part of my life and is something I
would do with our children if I were living; please make generous distributions for travel and
educational opportunities. Even a pleasure trip can have tremendous advantages in terms of
experience and maturity." is an example of which of the following?
A. Precatory Language
B. General Power of Appointment
C. Limited Power of Appointment
D. Mandatory Distribution - CORRECT ANSWER✔✔A. Precatory Language
Question: 7. When the document expressly states that the trustee has "Absolute or
Uncontrolled
Discretion" all of the following are true
EXCEPT which of the following?
A. Case law and the Restatement provide that these terms are not interpreted literally
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