CANNON TRUST SCHOOL II EXAM QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS||LATEST UPDATE||GUARANTEED PASS

CANNON TRUST SCHOOL II EXAM QUESTIONS WITH 100% VERIFIED CORRECT ANSWERS||LATEST UPDATE||GUARANTEED PASS H's will creates a QTIP marital trust for the benefit of his wife, W. The trust provides that W will receive all of the trust income, and will receive trust principal for her health and support. W has a limited power of appointment over the trust. Bank X is designated to serve as the sole trustee. At W's death, any income or principal she received from the trust will be included in her gross estate. H's executor will make a QTIP election for this trust on H's federal estate tax return. The marital trust: A. will be included in W's gross estate at her death because W had a limited power of appointment over the trust. B. will be included in W's gross estate at her death because she was entitled to receive distributions from trust principal for her health and support. D. will be included in W's estate because a QTIP election was made. - Correct Answer D. will be included in W's estate because a QTIP election was made. Which of the following is NOT a requirement of a QTIP trust? A. All net accounting income to be paid to the surviving spouse at least annually. B. Principal to be distributed at the trustee's discretion for the surviving spouse's health education support or maintenance. C. The surviving spouse has the ability to require the trustee to convert non-income producing assets to income productive assets. D. The surviving spouse may be the only permissible distributee during their lifetime. - Correct Answer B. Principal to be distributed at the trustee's discretion for the surviving spouse's health education support or maintenance. In a pro rata fractional formula, which trust is frozen during administration prior to funding? A. The marital trust B. The residual trust C. Neither, they must share the appreciation/depreciation.