PERSONAL TRUST LATEST
FUNDAMENTALS –
CANNON EXAM
Sole Ownership - ANSWERS-Fee Simple; Full and complete ctrl by a
single party; No survivorship; Subject to probate
Joint Tenancy WROS - ANSWERS-Ownership by two, or more with
equal ctrl; Ownership to the survivor or survivors equally
Tenancy by the Entirety - ANSWERS-Joint holding between spouses
only; Decisions required by both; Ownership to survivor
Tenants in Common - ANSWERS-No survivorship rights; Multiple
owners with differentiated shares; Sole ownership of a partial amount;
Subject to Probate
Community Property - ANSWERS-All property obtained during
marriage; Property owned at time of marriage is considered separate
Income Beneficiaries - ANSWERS-Present Beneficiaries; May have
access to income or principal
END OF
PAGE
1
, PERSONAL TRUST LATEST
FUNDAMENTALS –
CANNON EXAM
Remainder Beneficiaries - ANSWERS-Future Beneficiaries; Receive
remaining principal and undistributed income
Tuition and Medical Expense Exclusion - ANSWERS-Qualified
Transfers; Must be paid directly to service provider; Unlimited in
amount; Over and above AEA
Crummey Power - ANSWERS-Clifford D. Crummey v. Commissioner
(1968); concept of giving withdrawal rights to beneficiaries of trusts;
considered present interest; 30 day period
Gross Estate - ANSWERS-Anything in which the decedent owned,
controlled, or retained
Taxable Estate - ANSWERS-Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
END OF
PAGE
2
, PERSONAL TRUST LATEST
FUNDAMENTALS –
CANNON EXAM
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
Intestate Successsion - ANSWERS-Dying w/o valid last will &
testament
Distribution Rules of Intestate Succession - ANSWERS-State Law
determines division of property; Spousal rights exist in all states; State
takes property only if there are no close family members or claimants
Estate Administration Overview - ANSWERS-Collect, distribute, and/or
invest income/principal; Prepare Tax Returns; Report to the Court;
Receive closure from the IRS and Court; Distribute and close the estate
Administrator - ANSWERS-An individual or a trust institution
appointed by a court to settle the estate of a person who has died w/o
leaving a valid will
END OF
PAGE
3
FUNDAMENTALS –
CANNON EXAM
Sole Ownership - ANSWERS-Fee Simple; Full and complete ctrl by a
single party; No survivorship; Subject to probate
Joint Tenancy WROS - ANSWERS-Ownership by two, or more with
equal ctrl; Ownership to the survivor or survivors equally
Tenancy by the Entirety - ANSWERS-Joint holding between spouses
only; Decisions required by both; Ownership to survivor
Tenants in Common - ANSWERS-No survivorship rights; Multiple
owners with differentiated shares; Sole ownership of a partial amount;
Subject to Probate
Community Property - ANSWERS-All property obtained during
marriage; Property owned at time of marriage is considered separate
Income Beneficiaries - ANSWERS-Present Beneficiaries; May have
access to income or principal
END OF
PAGE
1
, PERSONAL TRUST LATEST
FUNDAMENTALS –
CANNON EXAM
Remainder Beneficiaries - ANSWERS-Future Beneficiaries; Receive
remaining principal and undistributed income
Tuition and Medical Expense Exclusion - ANSWERS-Qualified
Transfers; Must be paid directly to service provider; Unlimited in
amount; Over and above AEA
Crummey Power - ANSWERS-Clifford D. Crummey v. Commissioner
(1968); concept of giving withdrawal rights to beneficiaries of trusts;
considered present interest; 30 day period
Gross Estate - ANSWERS-Anything in which the decedent owned,
controlled, or retained
Taxable Estate - ANSWERS-Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
END OF
PAGE
2
, PERSONAL TRUST LATEST
FUNDAMENTALS –
CANNON EXAM
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
Intestate Successsion - ANSWERS-Dying w/o valid last will &
testament
Distribution Rules of Intestate Succession - ANSWERS-State Law
determines division of property; Spousal rights exist in all states; State
takes property only if there are no close family members or claimants
Estate Administration Overview - ANSWERS-Collect, distribute, and/or
invest income/principal; Prepare Tax Returns; Report to the Court;
Receive closure from the IRS and Court; Distribute and close the estate
Administrator - ANSWERS-An individual or a trust institution
appointed by a court to settle the estate of a person who has died w/o
leaving a valid will
END OF
PAGE
3
