Cannon Trust School Exam I (Latest Update)
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Terms in this set (164)
Your client owns a $200,000 home in joint tenancy, a $23,000
$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?
- $23,000
- $33,000
- $223,000
- $333,000
A simple trust earned $27,000 in dividends. It paid $25,000
$4,000 in trustee fees, one-half
from income and one-half from principal. Trust
accounting income is which of the following?
- $0
- $23,000
- $25,000
- $27,000
If the Trust Document is silent with respect to a certain Principal and Income Law of the State
cash transaction, the Trust Administrator should first
look to which of the following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
,When determining a long-term sustainable rate of 3-5%
return for a unitrust payout, which of the following best
represents the range of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an example of tangible Gold bar
personal property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
Which of the following is an example of tangible Jewelry
personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following this transfer, which of C has a remainder interest.
the following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of survivorship, when Her share passes to the surviving joint tenant regardless of what her will says.
one tenant dies which of the following best describes
the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her
will.
- Her share passes to the surviving joint tenant
regardless of what her will says.
- The asset must be sold and the estate gets 1/2 of the
proceeds.
A decedent owns $400,000 in his own name, a $400,000
$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?
- 0.
- $400,000.
- $500,000.
- $700,000.
, In cutting down a tree, which of the following occurs? Real property is converted to personal property.
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
- There is no conversion, the tree remains real property.
Which of the following transfers are includable in the Gift of $8,000 cash value life insurance policy to son.
gross estate of the donor if made within 3 years of
death?
- Gift of $8,000 cash value life insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely held company to
parent.
Which of the following can be deducted either on the Medical expenses relating to the decedent's last illness.
decedent's final 1040 income tax return or on the Form
706 Estate Tax return?
- Funeral expenses.
- Medical expenses relating to the decedent's last
illness.
- Court costs in probating the estate.
- Executor's administration expenses.
A client made lifetime taxable gifts of $800,000 ten $3,800,000
years prior to her death. She had an estate worth
$3,000,000 at death. The value of the property gifted
during her lifetime is worth $1,600,000 at her death. On
which of the following is her tentative tax figured prior
to applying the applicable exclusion amount?
- $800,000
- $3,000,000
- $3,800,000
- $4,600,000
A United States citizen living in Canada, died and was None. There is no marital deduction for assets passing to a non-citizen spouse.
survived by a spouse, who is a citizen of Canada. The
estate valued at $18 million after expenses, passed to
the surviving spouse outright. How much of the
surviving spouse's interest qualifies for the marital
deduction?
- None. There is no marital deduction for assets passing
to a non-citizen spouse.
- $100,000 as indexed.
- The basic exclusion amount as indexed.
- Unlimited since the decedent is a U.S. citizen.
Questions & Correct Answers (100% Correct Verified
Answers) Already Graded A+
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
Financial Markets and Institutions C... terms of interest rates and managin... Comprehensive Financial Derivative... BU
Teacher 62 terms Teacher 28 terms Teacher 119 terms Te
arosab254 Preview Forester3p Preview hillamwangi12 Preview
Terms in this set (164)
Your client owns a $200,000 home in joint tenancy, a $23,000
$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?
- $23,000
- $33,000
- $223,000
- $333,000
A simple trust earned $27,000 in dividends. It paid $25,000
$4,000 in trustee fees, one-half
from income and one-half from principal. Trust
accounting income is which of the following?
- $0
- $23,000
- $25,000
- $27,000
If the Trust Document is silent with respect to a certain Principal and Income Law of the State
cash transaction, the Trust Administrator should first
look to which of the following for guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
,When determining a long-term sustainable rate of 3-5%
return for a unitrust payout, which of the following best
represents the range of high confidence payout
percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Which of the following is an example of tangible Gold bar
personal property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land
Which of the following is an example of tangible Jewelry
personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house
A to B for life, then to C. Following this transfer, which of C has a remainder interest.
the following is true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Under joint tenants with rights of survivorship, when Her share passes to the surviving joint tenant regardless of what her will says.
one tenant dies which of the following best describes
the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her
will.
- Her share passes to the surviving joint tenant
regardless of what her will says.
- The asset must be sold and the estate gets 1/2 of the
proceeds.
A decedent owns $400,000 in his own name, a $400,000
$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?
- 0.
- $400,000.
- $500,000.
- $700,000.
, In cutting down a tree, which of the following occurs? Real property is converted to personal property.
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
- There is no conversion, the tree remains real property.
Which of the following transfers are includable in the Gift of $8,000 cash value life insurance policy to son.
gross estate of the donor if made within 3 years of
death?
- Gift of $8,000 cash value life insurance policy to son.
- Gift of $9,800 cash to daughter.
- Gift of $10,000 cash to friend.
- Gift of $5,000 stock in a closely held company to
parent.
Which of the following can be deducted either on the Medical expenses relating to the decedent's last illness.
decedent's final 1040 income tax return or on the Form
706 Estate Tax return?
- Funeral expenses.
- Medical expenses relating to the decedent's last
illness.
- Court costs in probating the estate.
- Executor's administration expenses.
A client made lifetime taxable gifts of $800,000 ten $3,800,000
years prior to her death. She had an estate worth
$3,000,000 at death. The value of the property gifted
during her lifetime is worth $1,600,000 at her death. On
which of the following is her tentative tax figured prior
to applying the applicable exclusion amount?
- $800,000
- $3,000,000
- $3,800,000
- $4,600,000
A United States citizen living in Canada, died and was None. There is no marital deduction for assets passing to a non-citizen spouse.
survived by a spouse, who is a citizen of Canada. The
estate valued at $18 million after expenses, passed to
the surviving spouse outright. How much of the
surviving spouse's interest qualifies for the marital
deduction?
- None. There is no marital deduction for assets passing
to a non-citizen spouse.
- $100,000 as indexed.
- The basic exclusion amount as indexed.
- Unlimited since the decedent is a U.S. citizen.
