PFAC 2026 Exam 2 with precise detailed answers || || || || || || ||
Which statement is not true about Ethics? || || || || || ||
a. Fiduciaries whose license is in good standing with the Professional Fiduciaries Bureau may be
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considered as alternatives to family members by probate judges. || || || || || || || ||
b. An ethical person does the right thing by conforming to professional standards of conduct.
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c. Ethical conduct is considered a “lower” standard of conduct than a legal standard.
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d. Conservators, both family members and professional fiduciaries, are expected to adhere to the
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Professional Fiduciaries Code of Ethics. || || || ||
Everyone appointed as a conservator, professional or not, must sign and acknowledge Judicial
|| || || || || || || || || || || || ||
Council Form GC-348 DUTIES OF CONSERVATOR AND ACKNOWLEDGEMENT OF
|| || || || || || || || ||
RECEIPT OF CONSERVATORS HANDBOOK. Answer: C || || || || ||
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In protecting the conservatee’s confidentiality, which of the following would the conservator not
|| || || || || || || || || || || || ||
do?
a. Limit information disclosure only to what is necessary and relevant.
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b. Tell the conservatee’s ex-wife about his terminal illness.
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c. Refuse to discuss information that may be detrimental to the well-being of the client.
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d. Assist the conservatee in communicating sensitive information.
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The conservator “stands in the shoes” of the conservatee. Only that information that is in the
|| || || || || || || || || || || || || || || ||
best interest of the conservatee should be disclosed. Answer: B
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Which one of the following is an ethical issue for the conservator?
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a. Never exceeding your legal authority.
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b. Taking extra money out of the conservatee’s account for your expenses.
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c. Thorough and accurate documentation of your conservatee’s financial matters.
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d. Not being influenced by the un-ethical behavior of fellow professionals.
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It’s not your money. Don’t touch it. Expenses for the conservatorship estate should be paid with
|| || || || || || || || || || || || || || || ||
estate assets. Conservators who incur out of pocket expenses must include those in their petition
|| || || || || || || || || || || || || || ||
for fees. Answer: B || || ||
, || || ||
In hiring an attorney for the trust, which one of the following statements would not be a good
|| || || || || || || || || || || || || || || || || ||
choice?
a. Hire an attorney with experience in trusts.
|| || || || || || ||
b. Get references from friends if you do not know an experienced trust attorney.
|| || || || || || || || || || || || ||
c. Changing an attorney either in a court supervised trust requires the filing and the court approval
|| || || || || || || || || || || || || || || ||
of a Substitution of Attorney.
|| || || || ||
d. An attorney with experience in real estate would be suitable.
|| || || || || || || || || ||
Attorneys, like many professionals, specialize in specific areas of the law. There are very few
|| || || || || || || || || || || || || || ||
general practice attorneys. Answer: D || || || ||
|| || ||
The administrative duties of a fiduciary do not include which statement?
|| || || || || || || || || ||
a. Knowledge that, in some instances, the terms of the trust override the CA Probate Code.
|| || || || || || || || || || || || || || ||
b. Terms of the trust are to be followed explicitly, even if those terms dictate something illegal.
|| || || || || || || || || || || || || || || ||
c. The Court will evaluate your decisions concerning trust administration.
|| || || || || || || || ||
d. Trust administrator is expected to fulfill their duties using care, skill and caution.
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When in doubt—PETITION THE COURT FOR INSTRUCTIONS. Answer: B
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The fiduciary is expected to remain impartial and in doing so, would not do which of the
|| || || || || || || || || || || || || || || || ||
following?
a. Uphold the directives of the trust.
|| || || || || ||
b. Communicate fairly with each party.
|| || || || ||
c. Follow directions from the heirs to invest aggressively in questionable stocks.
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d. Not allow your personal feelings to influence your decisions.
|| || || || || || || || ||
Trusts can allocate certain powers to a beneficiary who is not named as a co-trustee. A
|| || || || || || || || || || || || || || || ||
beneficiary may have the power to direct specified investments or direct all investments leaving || || || || || || || || || || || || || ||
the trustee with bookkeeping responsibilities only. The beneficiary with these powers is held to
|| || || || || || || || || || || || || ||
the same standards for prudent investments. Answer: C
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|| || ||
Fiduciary responsibilities to the trust do not include which one of the following?
|| || || || || || || || || || || ||
a. Avoid adverse trust appointments, i.e. cannot become a trustee of another trust which is adverse
|| || || || || || || || || || || || || || ||
in its nature to the first trust.
|| || || || || || ||
Which statement is not true about Ethics? || || || || || ||
a. Fiduciaries whose license is in good standing with the Professional Fiduciaries Bureau may be
|| || || || || || || || || || || || || || ||
considered as alternatives to family members by probate judges. || || || || || || || ||
b. An ethical person does the right thing by conforming to professional standards of conduct.
|| || || || || || || || || || || || || ||
c. Ethical conduct is considered a “lower” standard of conduct than a legal standard.
|| || || || || || || || || || || || ||
d. Conservators, both family members and professional fiduciaries, are expected to adhere to the
|| || || || || || || || || || || || || ||
Professional Fiduciaries Code of Ethics. || || || ||
Everyone appointed as a conservator, professional or not, must sign and acknowledge Judicial
|| || || || || || || || || || || || ||
Council Form GC-348 DUTIES OF CONSERVATOR AND ACKNOWLEDGEMENT OF
|| || || || || || || || ||
RECEIPT OF CONSERVATORS HANDBOOK. Answer: C || || || || ||
|| || ||
In protecting the conservatee’s confidentiality, which of the following would the conservator not
|| || || || || || || || || || || || ||
do?
a. Limit information disclosure only to what is necessary and relevant.
|| || || || || || || || || ||
b. Tell the conservatee’s ex-wife about his terminal illness.
|| || || || || || || ||
c. Refuse to discuss information that may be detrimental to the well-being of the client.
|| || || || || || || || || || || || || ||
d. Assist the conservatee in communicating sensitive information.
|| || || || || || ||
The conservator “stands in the shoes” of the conservatee. Only that information that is in the
|| || || || || || || || || || || || || || || ||
best interest of the conservatee should be disclosed. Answer: B
|| || || || || || || || ||
|| || ||
Which one of the following is an ethical issue for the conservator?
|| || || || || || || || || || ||
a. Never exceeding your legal authority.
|| || || || ||
b. Taking extra money out of the conservatee’s account for your expenses.
|| || || || || || || || || || ||
c. Thorough and accurate documentation of your conservatee’s financial matters.
|| || || || || || || || ||
d. Not being influenced by the un-ethical behavior of fellow professionals.
|| || || || || || || || || ||
It’s not your money. Don’t touch it. Expenses for the conservatorship estate should be paid with
|| || || || || || || || || || || || || || || ||
estate assets. Conservators who incur out of pocket expenses must include those in their petition
|| || || || || || || || || || || || || || ||
for fees. Answer: B || || ||
, || || ||
In hiring an attorney for the trust, which one of the following statements would not be a good
|| || || || || || || || || || || || || || || || || ||
choice?
a. Hire an attorney with experience in trusts.
|| || || || || || ||
b. Get references from friends if you do not know an experienced trust attorney.
|| || || || || || || || || || || || ||
c. Changing an attorney either in a court supervised trust requires the filing and the court approval
|| || || || || || || || || || || || || || || ||
of a Substitution of Attorney.
|| || || || ||
d. An attorney with experience in real estate would be suitable.
|| || || || || || || || || ||
Attorneys, like many professionals, specialize in specific areas of the law. There are very few
|| || || || || || || || || || || || || || ||
general practice attorneys. Answer: D || || || ||
|| || ||
The administrative duties of a fiduciary do not include which statement?
|| || || || || || || || || ||
a. Knowledge that, in some instances, the terms of the trust override the CA Probate Code.
|| || || || || || || || || || || || || || ||
b. Terms of the trust are to be followed explicitly, even if those terms dictate something illegal.
|| || || || || || || || || || || || || || || ||
c. The Court will evaluate your decisions concerning trust administration.
|| || || || || || || || ||
d. Trust administrator is expected to fulfill their duties using care, skill and caution.
|| || || || || || || || || || || || ||
When in doubt—PETITION THE COURT FOR INSTRUCTIONS. Answer: B
|| || || || || || || ||
|| || ||
The fiduciary is expected to remain impartial and in doing so, would not do which of the
|| || || || || || || || || || || || || || || || ||
following?
a. Uphold the directives of the trust.
|| || || || || ||
b. Communicate fairly with each party.
|| || || || ||
c. Follow directions from the heirs to invest aggressively in questionable stocks.
|| || || || || || || || || || ||
d. Not allow your personal feelings to influence your decisions.
|| || || || || || || || ||
Trusts can allocate certain powers to a beneficiary who is not named as a co-trustee. A
|| || || || || || || || || || || || || || || ||
beneficiary may have the power to direct specified investments or direct all investments leaving || || || || || || || || || || || || || ||
the trustee with bookkeeping responsibilities only. The beneficiary with these powers is held to
|| || || || || || || || || || || || || ||
the same standards for prudent investments. Answer: C
|| || || || || || ||
|| || ||
Fiduciary responsibilities to the trust do not include which one of the following?
|| || || || || || || || || || || ||
a. Avoid adverse trust appointments, i.e. cannot become a trustee of another trust which is adverse
|| || || || || || || || || || || || || || ||
in its nature to the first trust.
|| || || || || || ||
