Cannon Trust School I Questions With Correct
Answers 2026 Rated A+
Which forms of ownership avoid probate?
Joint tenancy, tenants by the entirety, contract property with a valid beneficiary named, living
trust property
Which forms of ownership are subject to probate?
Sole, Tenants in Common and Community Property
Which forms of ownership can be used ONLY by spouses?
Tenants by the Entirety, and Community Property
Which forms of ownership pass automatically (by operation of law or by contract)?
Joint Tenancy, Tenants by the Entirety, and Contract Property
Yoko dies with the following property:
- Car in her name $15,000
- Home in Joint names with Brother $500,000
- Insurance policy naming sister beneficiary $150,000
- Bank account in her name $10,000
Her last Will & Testament leaves everything she owns to her sister.
A. What will her sister receive?
B. What will her brother receive?
C. What is the value of her probate estate?
D. What is the value of her taxable estate?
A. Car $15K, Insurance $150K, Bank $10K = $175K
B. Home $500K = $500K
C. Car $15K & Bank $10K = $25K
D. Car $15K, Insurance $150K, Home $500K, & Bank $10K = $675K
A trust this year earns $2,000 of dividend income, $3,000 of municipal bond income, $1,250 of
long term capital gains, $1,500 of trustee fees. Then, the Fair Market Value is $100,000. What is
the Fiduciary Accounting Income (FAI) if it is a 4% unitrust?
, $4,000 ($100K X 4%)
A trust this year earns $1,000 of dividend income, $2,500 of municipal bond income, $2,000 of
long term capital gains, $1,500 of trustee fees. Then, the Fair Market Value is $100,000. What is
the Fiduciary Accounting Income (FAI) if it is a 3% unitrust?
$3,000 ($100K X 3%)
Donor(s) give money outright as follows. How much qualifies for the annual exclusion, without
using any applicable exclusion amount?
A. D gives to A, B, C
B. D gives to A, B, B, and their spouses
C. D1 & D2 each gives to A, B, C
A. $54K ($18K X 3)
B. $108K ($18 X 6)
C. $108K (D1 = $18K X 3)(D2 = $18K X 3)
Which of the following qualifies as a present interest for the Annual Exclusion?
- Outright
- Into Childs RLT
- Simple Trust
- Complex Trust
- Complex Trust with Crummey Powers
- Life Estate
- 529 Plan
- 2503C Trust
- UTMA
- Contingent Remainder Interest
- Vested Remainder Interest
- Grantor Retained Annuity Trust
- Charitable Lead Trust
- Outright
- Into Childs RLT
- Simple Trust
- Complex Trust with Crummey Powers
- Life Estate
- 529 Plan
Answers 2026 Rated A+
Which forms of ownership avoid probate?
Joint tenancy, tenants by the entirety, contract property with a valid beneficiary named, living
trust property
Which forms of ownership are subject to probate?
Sole, Tenants in Common and Community Property
Which forms of ownership can be used ONLY by spouses?
Tenants by the Entirety, and Community Property
Which forms of ownership pass automatically (by operation of law or by contract)?
Joint Tenancy, Tenants by the Entirety, and Contract Property
Yoko dies with the following property:
- Car in her name $15,000
- Home in Joint names with Brother $500,000
- Insurance policy naming sister beneficiary $150,000
- Bank account in her name $10,000
Her last Will & Testament leaves everything she owns to her sister.
A. What will her sister receive?
B. What will her brother receive?
C. What is the value of her probate estate?
D. What is the value of her taxable estate?
A. Car $15K, Insurance $150K, Bank $10K = $175K
B. Home $500K = $500K
C. Car $15K & Bank $10K = $25K
D. Car $15K, Insurance $150K, Home $500K, & Bank $10K = $675K
A trust this year earns $2,000 of dividend income, $3,000 of municipal bond income, $1,250 of
long term capital gains, $1,500 of trustee fees. Then, the Fair Market Value is $100,000. What is
the Fiduciary Accounting Income (FAI) if it is a 4% unitrust?
, $4,000 ($100K X 4%)
A trust this year earns $1,000 of dividend income, $2,500 of municipal bond income, $2,000 of
long term capital gains, $1,500 of trustee fees. Then, the Fair Market Value is $100,000. What is
the Fiduciary Accounting Income (FAI) if it is a 3% unitrust?
$3,000 ($100K X 3%)
Donor(s) give money outright as follows. How much qualifies for the annual exclusion, without
using any applicable exclusion amount?
A. D gives to A, B, C
B. D gives to A, B, B, and their spouses
C. D1 & D2 each gives to A, B, C
A. $54K ($18K X 3)
B. $108K ($18 X 6)
C. $108K (D1 = $18K X 3)(D2 = $18K X 3)
Which of the following qualifies as a present interest for the Annual Exclusion?
- Outright
- Into Childs RLT
- Simple Trust
- Complex Trust
- Complex Trust with Crummey Powers
- Life Estate
- 529 Plan
- 2503C Trust
- UTMA
- Contingent Remainder Interest
- Vested Remainder Interest
- Grantor Retained Annuity Trust
- Charitable Lead Trust
- Outright
- Into Childs RLT
- Simple Trust
- Complex Trust with Crummey Powers
- Life Estate
- 529 Plan
