Cannon Trust School 2 Exam
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CANNON TRUST SCHOOL 2 Cannon Trust School II - Sample Exa... CTFA 2025 ABA CTFA E
236 terms 29 terms 212 terms 268 term
Carolinetmiller95 Preview NLHoman Preview megandlou77 Preview Circ
Terms in this set (68) Hide definitions
What is the primary fiduciary duty of a trustee under the To act in the best interests of the beneficiaries
Uniform Trust Code (UTC)?
To maximize trust income
To act in the best interests of the beneficiaries
To invest solely in conservative assets
To distribute all trust assets annually
Which IRS form is used to report income from a Form 1040
revocable living trust?
Form 1041
Form 1040
Form 706
Form 709
Under the Prudent Investor Rule, what must a trustee Risk, return, and the needs of all beneficiaries
consider when making investment decisions?
Only the income needs of the current beneficiary
Risk, return, and the needs of all beneficiaries
The grantor's personal investment preferences
Maximizing short-term gains
, What is the purpose of a Crummey power in a trust? To qualify contributions for the gift tax exclusion
To allow discretionary distributions
To qualify contributions for the gift tax exclusion
To revoke the trust
To appoint a successor trustee
What is the federal estate tax exemption amount for $15 million
2026?
$5.45 million
$13.61 million
$10 million
$15 million
Under the UTC, what is required for a trustee to delegate Prudent selection and monitoring of the agent
investment functions?
Beneficiary approval
Prudent selection and monitoring of the agent
Court authorization
Grantor's written consent
Which type of trust is used to minimize estate taxes for AB trust
married couples?
Revocable living trust
Charitable remainder trust
AB trust
Special needs trust
What is the fiduciary standard for managing trust Act with prudence, skill, and diligence
investments?
Maximize income regardless of risk
Act with prudence, skill, and diligence
Follow the grantor's instructions exclusively
Avoid all investments with market risk
Which IRS form is used to report estate taxes? Form 706
Form 1040
Form 1041
Form 706
Form 709
What is the purpose of a special needs trust? To provide for a disabled beneficiary without affecting eligibility for public
To provide for a disabled beneficiary without affecting benefits
eligibility for public benefits
To minimize estate taxes
To fund charitable organizations
To distribute assets to minors immediately
Under the UTC, when can a trustee terminate a trust? If the trust's purpose is fulfilled or becomes uneconomical
At the trustee's discretion
If the trust's purpose is fulfilled or becomes
uneconomical
Only with court approval
Upon request of the grantor
Leave the first rating
Students also studied
Flashcard sets Study guides
CANNON TRUST SCHOOL 2 Cannon Trust School II - Sample Exa... CTFA 2025 ABA CTFA E
236 terms 29 terms 212 terms 268 term
Carolinetmiller95 Preview NLHoman Preview megandlou77 Preview Circ
Terms in this set (68) Hide definitions
What is the primary fiduciary duty of a trustee under the To act in the best interests of the beneficiaries
Uniform Trust Code (UTC)?
To maximize trust income
To act in the best interests of the beneficiaries
To invest solely in conservative assets
To distribute all trust assets annually
Which IRS form is used to report income from a Form 1040
revocable living trust?
Form 1041
Form 1040
Form 706
Form 709
Under the Prudent Investor Rule, what must a trustee Risk, return, and the needs of all beneficiaries
consider when making investment decisions?
Only the income needs of the current beneficiary
Risk, return, and the needs of all beneficiaries
The grantor's personal investment preferences
Maximizing short-term gains
, What is the purpose of a Crummey power in a trust? To qualify contributions for the gift tax exclusion
To allow discretionary distributions
To qualify contributions for the gift tax exclusion
To revoke the trust
To appoint a successor trustee
What is the federal estate tax exemption amount for $15 million
2026?
$5.45 million
$13.61 million
$10 million
$15 million
Under the UTC, what is required for a trustee to delegate Prudent selection and monitoring of the agent
investment functions?
Beneficiary approval
Prudent selection and monitoring of the agent
Court authorization
Grantor's written consent
Which type of trust is used to minimize estate taxes for AB trust
married couples?
Revocable living trust
Charitable remainder trust
AB trust
Special needs trust
What is the fiduciary standard for managing trust Act with prudence, skill, and diligence
investments?
Maximize income regardless of risk
Act with prudence, skill, and diligence
Follow the grantor's instructions exclusively
Avoid all investments with market risk
Which IRS form is used to report estate taxes? Form 706
Form 1040
Form 1041
Form 706
Form 709
What is the purpose of a special needs trust? To provide for a disabled beneficiary without affecting eligibility for public
To provide for a disabled beneficiary without affecting benefits
eligibility for public benefits
To minimize estate taxes
To fund charitable organizations
To distribute assets to minors immediately
Under the UTC, when can a trustee terminate a trust? If the trust's purpose is fulfilled or becomes uneconomical
At the trustee's discretion
If the trust's purpose is fulfilled or becomes
uneconomical
Only with court approval
Upon request of the grantor
