CANNON TRUST LATEST
FUNDAMENTALS EXAM
Which of the following is an example of TPP?
1. rental property
2. common stock
3. art work
4. vacant land - ANSWERS-3. art work
In the transfer of A to B, B has what kind of interest in the transfer?
1. simple trust
2. fee simple
3. reversionary
4. remainder - ANSWERS-2. fee simple
A life tenant has what kind of interest in a property?
1. reversionary
2. remainder
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1
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
3. future
4. present - ANSWERS-4. present
Which of the following statements best describes the U.S. Transfer Tax
System?
1. Gift taxes are on a lower rate schedule that estate taxes
2. Estate taxes are calculated independent of taxable gifts
3. estates taxes are based on the value of taxable gifts and the FMV of
assets owned as of DOD
4. taxable gifts that are drawn back into the estate for calculation of
estate taxes creates double taxation - ANSWERS-3. estates taxes are
based on the value of taxable gifts and the FMV of assets owned as of
DOD
Gift and estate taxes are unified for individuals. Which of the following
best describes what that means?
1. Gift tax filings are simply a record keeping requirement
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2
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
2. There is, once again, complete coordination of the Gift and Estate Tax
system under transfer taxes
3. Gift and estate taxes are unified with the incomes tax system, which
allows for easier tax prep
4. There is no longer an advantage to gifting during lifetime -
ANSWERS-2. There is, once again, complete coordination of the Gift
and Estate Tax system under transfer taxes
The max rate charged for purposes of Estate Taxes is:
1. 35%
2. 40%
3. 45%
5. 55% - ANSWERS-2. 40%
Which of the following is not included in the gross estate of a decedent?
1. Life insurance transferred within 3 years of DOD
2. An irrevocable trust established by the decedent in which all income
is retained for life
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PAGE
3
FUNDAMENTALS EXAM
Which of the following is an example of TPP?
1. rental property
2. common stock
3. art work
4. vacant land - ANSWERS-3. art work
In the transfer of A to B, B has what kind of interest in the transfer?
1. simple trust
2. fee simple
3. reversionary
4. remainder - ANSWERS-2. fee simple
A life tenant has what kind of interest in a property?
1. reversionary
2. remainder
END OF
PAGE
1
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
3. future
4. present - ANSWERS-4. present
Which of the following statements best describes the U.S. Transfer Tax
System?
1. Gift taxes are on a lower rate schedule that estate taxes
2. Estate taxes are calculated independent of taxable gifts
3. estates taxes are based on the value of taxable gifts and the FMV of
assets owned as of DOD
4. taxable gifts that are drawn back into the estate for calculation of
estate taxes creates double taxation - ANSWERS-3. estates taxes are
based on the value of taxable gifts and the FMV of assets owned as of
DOD
Gift and estate taxes are unified for individuals. Which of the following
best describes what that means?
1. Gift tax filings are simply a record keeping requirement
END OF
PAGE
2
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
2. There is, once again, complete coordination of the Gift and Estate Tax
system under transfer taxes
3. Gift and estate taxes are unified with the incomes tax system, which
allows for easier tax prep
4. There is no longer an advantage to gifting during lifetime -
ANSWERS-2. There is, once again, complete coordination of the Gift
and Estate Tax system under transfer taxes
The max rate charged for purposes of Estate Taxes is:
1. 35%
2. 40%
3. 45%
5. 55% - ANSWERS-2. 40%
Which of the following is not included in the gross estate of a decedent?
1. Life insurance transferred within 3 years of DOD
2. An irrevocable trust established by the decedent in which all income
is retained for life
END OF
PAGE
3
