CANNON 1 CUMULATIVE QUIZ
(2026/2027) UPDATE|EXAM 130
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
1. Yourmclientmownsmam$200,000mhomeminmjointmtenancy,mam$15,000mcarminmhismownmname,ma
nm$8,000mCDminmhismnamemalone,mandmam$100,000mlifeminsurancempolicymwithmamcashmvalu
emofm$10,000,mpayablemtomhismwife.mWhatmismthemvaluemofmhismprobatemestate?m
a. $23,000
b. $33,000
c. $223,000
d. $333,000m-mCORRECTmANSWERma.m$23,000
2. Amsimplemtrustmearnedm$27,000minmdividends.mItmpaidm$4,000minmtrusteemfees,mone-
halfmfrommincomemandmone-
halfmfrommprincipal.mTrustmaccountingmincomemismwhichmofmthemfollowing:m
a. $0
b. $23,000
c. $25,000
d. $27,000m-mCORRECTmANSWERmc.m$25,000
3. IfmthemTrustmDocumentmismsilentmwithmrespectmtomamcertainmcashmtransaction,mthemTrustmA
dministratormshouldmfirstmlookmtomwhichmofmthemfollowingmguidance?m
a. CourtmofmJurisdictionm
b. PrincipalmandmIncomemLawmofmStatem
c. Grantorm
d. OCCm-mCORRECTmANSWERmb.mPrincipalmandmIncomemLawmofmState
,4. Whenmdeterminingmamlong-
termmsustainablemratemofmreturnmformamunitrustmpayout,mwhichmofmthemfollowingmbestmrepr
esentsmthemrangemofmhighmconfidencempayoutmpercentages?m
a. 1-2%m
b. 2-3%m
c. 3-5%m
d. 120%mofmfederalmmidtermmratem-mCORRECTmANSWERmc.m3-5%
5. Whichmofmthemfollowingmismanmexamplemofmtangiblempersonalmproperty?
a. Goldmbar
b. Commonmstockmcertificatem
c. Patentm
d. Vacantmlandm-mCORRECTmANSWERma.mGoldmbar
6. Whichmofmthemfollowingmismanmexamplemofmtangiblempersonalmproperty?
a. Familymresidencem
b. IBMmstockm
c. Jewelrym
d. RentalmHousem-mCORRECTmANSWERmc.mJewelry
7. AmtomBmformlife,mthenmtomC.mFollowingmthismtransfer,mwhichmofmthemfollowingmismtrue?
a. Amhasmamfeemsimpleminterest.m
b. Bmhasmamreversionaryminterest.m
c. Cmhasmamremainderminterest.m
d. Cmhasmamlifemestate.m-mCORRECTmANSWERmc.mCmhasmamremainderminterest.
,8. Undermjointmtenetsmwithmrightsmtomsurvivorship,mwhenmonemtenantmdies,mwhichmofmthemfoll
owingmbestmdescribesmthemresults?
a. Hermsharempassesmthroughmhermwillmtomhermheirs.m
b. Hermsharempassesmbymlawmtomhermheirs,mnotmthroughmhermwill.m
c. Hermsharempassesmtomthemsurvivingmjointmtenantmregardlessmofmwhatmhermwillmsays.
m
d. Themassetmmustmbemsoldmandmthemestatemgetsm1/2mofmthemproceeds.m-
mCORRECTmANSWERmc.mHermsharempassesmtomthemsurvivingmjointmtenantmregardles
smofmwhatmhermwillmsays.
9. Amdecendentmownsm$400,000minmhismownmname,mam$200,000mhomeminmjointmtenancymwit
hmhismspousemandmam$100,000mlifeminsurancempolicymwithmthemchildrenmasmbeneficiaries.m
Whichmofmthemfollowingmismthemamountmpassingmthroughmprobate?m
a. 0
b. $400,000
c. $500,000
d. $700,000m-mCORRECTmANSWERmb.m$400,000
10. Inmcuttingmdownmamtree,mwhichmofmthemfollowingmoccurs?m
a. Realmpropertymismconvertedmtompersonalmproperty.m
b. Personalmpropertymismconvertedmtomrealmproperty.m
c. Realmpropertymismconvertedmtomamfixture.m
d. Theremismnomconversion,mthemtreemremainsmrealmproperty.m-
mCORRECTmANSWERma.mRealmpropertymismconvertedmtompersonalmproperty.
11. Whichmofmthemfollowingmtransfersmallmincludableminmthemgrossmestatemofmthemdonormifmmad
emwithingm3myearsmofmdeath?m
, a. Giftmofm$8,000mcashmvaluemlifeminsurancempolicymtomson.m
b. Giftmofm9,800mcashmtomdaughter.m
c. Giftmofm$10,000mcashmtomfriend.m
d. Giftmofm$5,000mstockminmamcloselymheldmcompanymtomparent.m-
mCORRECTmANSWERma.mGiftmofm$8,000mcashmvaluemlifeminsurancempolicymtomson.
12. Whichmofmthemfollowingmcanmbemdeductedmeithermonmthemdecedent'smfinalm1040mincomemt
axmreturnmormonmthemFormm706mEstatemTaxmreturn?m
1. Funeralmexpenses.m
2. Medicalmexpensesmrelatingmtomthemdecedent'smlastmillness.m
3. Courtmcostsminmprobatingmthemestate.m
4. Executor'smadministrationmexpenses.m-
mCORRECTmANSWERm2.mMedicalmexpensesmrelatingmtomthemdecedent'smlastmillness.
13. Amclientmmademlifetimemtaxablemgiftsmofm$800,000mtenmyearsmpriormtomhermdeath.mShemhad
manmestatemworthm$3,000,000matmdeath.mThemvaluemofmthempropertymgiftedmduringmhermlife
timemismworthm$1,600,000matmhermdeath.mOnmwhichmofmthemfollowingmismhermtentativemtaxm
figuredmpriormtomapplyingmthemapplicablemexclusionmamount?m
a. $800,000m
b. $3,000,000m
c. $3,800,000m
d. $4,600,000m-mCORRECTmANSWERmc.m$3,800,000
14. AmUnitedmStatesmcitizenmlivingminmCanada,mdiedmandmwasmsurvivedmbymamspouse,mwhomismam
citizenmofmCanada.mThemestatemvaluedmatm$18mmillionmaftermexpenses,mpassedmtomthemsurv
ivingmspousemoutright.mHowmmuchmofmthemsurvivingmspouse'sminterestmqualifiesmformthemm
aritalmdeduction?m
a. None.mTheremismnommaritalmdeductionmformassetsmpassingmtomamnon-
citizenmspouse.m
(2026/2027) UPDATE|EXAM 130
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
1. Yourmclientmownsmam$200,000mhomeminmjointmtenancy,mam$15,000mcarminmhismownmname,ma
nm$8,000mCDminmhismnamemalone,mandmam$100,000mlifeminsurancempolicymwithmamcashmvalu
emofm$10,000,mpayablemtomhismwife.mWhatmismthemvaluemofmhismprobatemestate?m
a. $23,000
b. $33,000
c. $223,000
d. $333,000m-mCORRECTmANSWERma.m$23,000
2. Amsimplemtrustmearnedm$27,000minmdividends.mItmpaidm$4,000minmtrusteemfees,mone-
halfmfrommincomemandmone-
halfmfrommprincipal.mTrustmaccountingmincomemismwhichmofmthemfollowing:m
a. $0
b. $23,000
c. $25,000
d. $27,000m-mCORRECTmANSWERmc.m$25,000
3. IfmthemTrustmDocumentmismsilentmwithmrespectmtomamcertainmcashmtransaction,mthemTrustmA
dministratormshouldmfirstmlookmtomwhichmofmthemfollowingmguidance?m
a. CourtmofmJurisdictionm
b. PrincipalmandmIncomemLawmofmStatem
c. Grantorm
d. OCCm-mCORRECTmANSWERmb.mPrincipalmandmIncomemLawmofmState
,4. Whenmdeterminingmamlong-
termmsustainablemratemofmreturnmformamunitrustmpayout,mwhichmofmthemfollowingmbestmrepr
esentsmthemrangemofmhighmconfidencempayoutmpercentages?m
a. 1-2%m
b. 2-3%m
c. 3-5%m
d. 120%mofmfederalmmidtermmratem-mCORRECTmANSWERmc.m3-5%
5. Whichmofmthemfollowingmismanmexamplemofmtangiblempersonalmproperty?
a. Goldmbar
b. Commonmstockmcertificatem
c. Patentm
d. Vacantmlandm-mCORRECTmANSWERma.mGoldmbar
6. Whichmofmthemfollowingmismanmexamplemofmtangiblempersonalmproperty?
a. Familymresidencem
b. IBMmstockm
c. Jewelrym
d. RentalmHousem-mCORRECTmANSWERmc.mJewelry
7. AmtomBmformlife,mthenmtomC.mFollowingmthismtransfer,mwhichmofmthemfollowingmismtrue?
a. Amhasmamfeemsimpleminterest.m
b. Bmhasmamreversionaryminterest.m
c. Cmhasmamremainderminterest.m
d. Cmhasmamlifemestate.m-mCORRECTmANSWERmc.mCmhasmamremainderminterest.
,8. Undermjointmtenetsmwithmrightsmtomsurvivorship,mwhenmonemtenantmdies,mwhichmofmthemfoll
owingmbestmdescribesmthemresults?
a. Hermsharempassesmthroughmhermwillmtomhermheirs.m
b. Hermsharempassesmbymlawmtomhermheirs,mnotmthroughmhermwill.m
c. Hermsharempassesmtomthemsurvivingmjointmtenantmregardlessmofmwhatmhermwillmsays.
m
d. Themassetmmustmbemsoldmandmthemestatemgetsm1/2mofmthemproceeds.m-
mCORRECTmANSWERmc.mHermsharempassesmtomthemsurvivingmjointmtenantmregardles
smofmwhatmhermwillmsays.
9. Amdecendentmownsm$400,000minmhismownmname,mam$200,000mhomeminmjointmtenancymwit
hmhismspousemandmam$100,000mlifeminsurancempolicymwithmthemchildrenmasmbeneficiaries.m
Whichmofmthemfollowingmismthemamountmpassingmthroughmprobate?m
a. 0
b. $400,000
c. $500,000
d. $700,000m-mCORRECTmANSWERmb.m$400,000
10. Inmcuttingmdownmamtree,mwhichmofmthemfollowingmoccurs?m
a. Realmpropertymismconvertedmtompersonalmproperty.m
b. Personalmpropertymismconvertedmtomrealmproperty.m
c. Realmpropertymismconvertedmtomamfixture.m
d. Theremismnomconversion,mthemtreemremainsmrealmproperty.m-
mCORRECTmANSWERma.mRealmpropertymismconvertedmtompersonalmproperty.
11. Whichmofmthemfollowingmtransfersmallmincludableminmthemgrossmestatemofmthemdonormifmmad
emwithingm3myearsmofmdeath?m
, a. Giftmofm$8,000mcashmvaluemlifeminsurancempolicymtomson.m
b. Giftmofm9,800mcashmtomdaughter.m
c. Giftmofm$10,000mcashmtomfriend.m
d. Giftmofm$5,000mstockminmamcloselymheldmcompanymtomparent.m-
mCORRECTmANSWERma.mGiftmofm$8,000mcashmvaluemlifeminsurancempolicymtomson.
12. Whichmofmthemfollowingmcanmbemdeductedmeithermonmthemdecedent'smfinalm1040mincomemt
axmreturnmormonmthemFormm706mEstatemTaxmreturn?m
1. Funeralmexpenses.m
2. Medicalmexpensesmrelatingmtomthemdecedent'smlastmillness.m
3. Courtmcostsminmprobatingmthemestate.m
4. Executor'smadministrationmexpenses.m-
mCORRECTmANSWERm2.mMedicalmexpensesmrelatingmtomthemdecedent'smlastmillness.
13. Amclientmmademlifetimemtaxablemgiftsmofm$800,000mtenmyearsmpriormtomhermdeath.mShemhad
manmestatemworthm$3,000,000matmdeath.mThemvaluemofmthempropertymgiftedmduringmhermlife
timemismworthm$1,600,000matmhermdeath.mOnmwhichmofmthemfollowingmismhermtentativemtaxm
figuredmpriormtomapplyingmthemapplicablemexclusionmamount?m
a. $800,000m
b. $3,000,000m
c. $3,800,000m
d. $4,600,000m-mCORRECTmANSWERmc.m$3,800,000
14. AmUnitedmStatesmcitizenmlivingminmCanada,mdiedmandmwasmsurvivedmbymamspouse,mwhomismam
citizenmofmCanada.mThemestatemvaluedmatm$18mmillionmaftermexpenses,mpassedmtomthemsurv
ivingmspousemoutright.mHowmmuchmofmthemsurvivingmspouse'sminterestmqualifiesmformthemm
aritalmdeduction?m
a. None.mTheremismnommaritalmdeductionmformassetsmpassingmtomamnon-
citizenmspouse.m
