CANNON TRUST SCHOOL I EXAM STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Sole Ownership - ANSWER ✔ Titled in the name of one person, full rights
to property in life and death; transfers under decedent's will or intestate
estate; subject to probate.
- If individual becomes incapacitated - look for DPOA - if no DPOA,
State will appoint a guardian.
- If individual dies - look for Will - if no Will, State will determine
Intestate Succession
2. Joint Tenancy with Rights of Survivorship - ANSWER ✔ Ownership by
multiple individuals who have an undivided interest and survivorship rights;
decedent's share passes to the surviving tenant(s) by operation of law of any
will or trust; avoids probate.
3. Tenancy by the Entirety - ANSWER ✔ Form of Joint Tenancy held only
between spouses; ownership is held in the entirety so that the interest may
not be partitioned without the consent of both parties, lending some creditor
protection; avoids probate.
- Not recognized in all states
- Some states only allow the ownership in real property, not personal
,4. Tenants in Common - ANSWER ✔ Owned by multiple individuals who
each have a separate, but undivided interest; No survivorship rights; Share
interests may be unequal; Title reflects ownership interests; possibly subject
to probate depending on decedent's share and if its help in non-probate form
of ownership.
5. Community Property - ANSWER ✔ All property that spouses acquire by
their joint efforts during their marriage; property owned before marriage, or
acquired by gift or inheritance is considered "separate property"; states
recognize pre and post marital agreements; some added rights of
survivorship; subject to probate.
6. "Contract" Property - ANSWER ✔ Property subject to contractual
beneficiary designation Life Insurance, Annuities, IRAs, Qualified
Retirement Plans
- Avoids probate
7. Living Trust Property - ANSWER ✔ Property legally titled in the name of
living (inter vivos) trust is subject to the terms of the trust agreements;
separates legal ownership of the assets from beneficial owner; avoids
probate.
-Assets must be re-titled into the trusts name
- Without property being titled in the trust name, the trust is not funded
8. Real Property - ANSWER ✔ Refer to land, building and other fixtures on
land and various rights which go along with land or some interest in it
,9. 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?
- $23,000
- $33,000
- $223,000
- $333,000 - ANSWER ✔ $23,000
10.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?
- $0
- $23,000
- $25,000
- $27,000 - ANSWER ✔ $25,000
11.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?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC - ANSWER ✔ Principal and Income Law of the State
12.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?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate - ANSWER ✔ 3-5%
, 13.Which of the following is an example of tangible personal property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land - ANSWER ✔ Gold bar
14.Which of the following is an example of tangible personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house - ANSWER ✔ Jewelry
15.A to B for life, then to C. Following this transfer, which of 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. - ANSWER ✔ C has a remainder interest.
16.Under joint tenants with rights of survivorship, when 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. -
ANSWER ✔ Her share passes to the surviving joint tenant regardless
of what her will says.
17.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
GUIDE 2026 COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. Sole Ownership - ANSWER ✔ Titled in the name of one person, full rights
to property in life and death; transfers under decedent's will or intestate
estate; subject to probate.
- If individual becomes incapacitated - look for DPOA - if no DPOA,
State will appoint a guardian.
- If individual dies - look for Will - if no Will, State will determine
Intestate Succession
2. Joint Tenancy with Rights of Survivorship - ANSWER ✔ Ownership by
multiple individuals who have an undivided interest and survivorship rights;
decedent's share passes to the surviving tenant(s) by operation of law of any
will or trust; avoids probate.
3. Tenancy by the Entirety - ANSWER ✔ Form of Joint Tenancy held only
between spouses; ownership is held in the entirety so that the interest may
not be partitioned without the consent of both parties, lending some creditor
protection; avoids probate.
- Not recognized in all states
- Some states only allow the ownership in real property, not personal
,4. Tenants in Common - ANSWER ✔ Owned by multiple individuals who
each have a separate, but undivided interest; No survivorship rights; Share
interests may be unequal; Title reflects ownership interests; possibly subject
to probate depending on decedent's share and if its help in non-probate form
of ownership.
5. Community Property - ANSWER ✔ All property that spouses acquire by
their joint efforts during their marriage; property owned before marriage, or
acquired by gift or inheritance is considered "separate property"; states
recognize pre and post marital agreements; some added rights of
survivorship; subject to probate.
6. "Contract" Property - ANSWER ✔ Property subject to contractual
beneficiary designation Life Insurance, Annuities, IRAs, Qualified
Retirement Plans
- Avoids probate
7. Living Trust Property - ANSWER ✔ Property legally titled in the name of
living (inter vivos) trust is subject to the terms of the trust agreements;
separates legal ownership of the assets from beneficial owner; avoids
probate.
-Assets must be re-titled into the trusts name
- Without property being titled in the trust name, the trust is not funded
8. Real Property - ANSWER ✔ Refer to land, building and other fixtures on
land and various rights which go along with land or some interest in it
,9. 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?
- $23,000
- $33,000
- $223,000
- $333,000 - ANSWER ✔ $23,000
10.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?
- $0
- $23,000
- $25,000
- $27,000 - ANSWER ✔ $25,000
11.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?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC - ANSWER ✔ Principal and Income Law of the State
12.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?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate - ANSWER ✔ 3-5%
, 13.Which of the following is an example of tangible personal property?
- Gold bar
- Common stock certificate
- Patent
- Vacant land - ANSWER ✔ Gold bar
14.Which of the following is an example of tangible personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house - ANSWER ✔ Jewelry
15.A to B for life, then to C. Following this transfer, which of 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. - ANSWER ✔ C has a remainder interest.
16.Under joint tenants with rights of survivorship, when 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. -
ANSWER ✔ Her share passes to the surviving joint tenant regardless
of what her will says.
17.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
