Cannon Trust School 1 Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Sole Ownership - CORRECT 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
Joint Tenancy with Rights of Survivorship - CORRECT 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.
Tenancy by the Entirety - CORRECT 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
Tenants in Common - CORRECT 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.
Community Property - CORRECT 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.
, "Contract" Property - CORRECT ANSWER Property subject to contractual beneficiary
designation Life Insurance, Annuities, IRAs, Qualified Retirement Plans
- Avoids probate
Living Trust Property - CORRECT 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
Real Property - CORRECT ANSWER Refer to land, building and other fixtures on
land and various rights which go along with land or some interest in it
Land - CORRECT ANSWER Included not only the surface of the ground, but
everything under and over it
Fixture - CORRECT ANSWER Something which is not naturally a part of the land, but
has been affixed to the land in such a way that it cannot be readily be removed without
damage.
- Buildings are fixtures on land = real property
Personal Property - CORRECT ANSWER Anything that is not real property;
immovability may be moved with or by its owner.
- Can be tangible or intangible
Tangible - CORRECT ANSWER Personal property that can be moved and which has
physical existence
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Sole Ownership - CORRECT 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
Joint Tenancy with Rights of Survivorship - CORRECT 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.
Tenancy by the Entirety - CORRECT 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
Tenants in Common - CORRECT 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.
Community Property - CORRECT 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.
, "Contract" Property - CORRECT ANSWER Property subject to contractual beneficiary
designation Life Insurance, Annuities, IRAs, Qualified Retirement Plans
- Avoids probate
Living Trust Property - CORRECT 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
Real Property - CORRECT ANSWER Refer to land, building and other fixtures on
land and various rights which go along with land or some interest in it
Land - CORRECT ANSWER Included not only the surface of the ground, but
everything under and over it
Fixture - CORRECT ANSWER Something which is not naturally a part of the land, but
has been affixed to the land in such a way that it cannot be readily be removed without
damage.
- Buildings are fixtures on land = real property
Personal Property - CORRECT ANSWER Anything that is not real property;
immovability may be moved with or by its owner.
- Can be tangible or intangible
Tangible - CORRECT ANSWER Personal property that can be moved and which has
physical existence
