Personal Trust Fundamentals – Cannon Questions
With Correct Answers 2026 Rated A+
Sole Ownership - CORRECT ANSWER -Fee Simple; Full and complete ctrl by a single party; No
survivorship; Subject to probate
Joint Tenancy WROS - CORRECT ANSWER -Ownership by two, or more with equal ctrl;
Ownership to the survivor or survivors equally
Tenancy by the Entirety - CORRECT ANSWER -Joint holding between spouses only; Decisions
required by both; Ownership to survivor
Tenants in Common - CORRECT ANSWER -No survivorship rights; Multiple owners with
differentiated shares; Sole ownership of a partial amount; Subject to Probate
Community Property - CORRECT ANSWER -All property obtained during marriage; Property
owned at time of marriage is considered separate
Income Beneficiaries - CORRECT ANSWER -Present Beneficiaries; May have access to income or
principal
Remainder Beneficiaries - CORRECT ANSWER -Future Beneficiaries; Receive remaining principal
and undistributed income
Tuition and Medical Expense Exclusion - CORRECT ANSWER -Qualified Transfers; Must be paid
directly to service provider; Unlimited in amount; Over and above AEA
Crummey Power - CORRECT ANSWER -Clifford D. Crummey v. Commissioner (1968); concept of
giving withdrawal rights to beneficiaries of trusts; considered present interest; 30 day period
, Gross Estate - CORRECT ANSWER -Anything in which the decedent owned, controlled, or
retained
Taxable Estate - CORRECT ANSWER -Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
Intestate Successsion - CORRECT ANSWER -Dying w/o valid last will & testament
Distribution Rules of Intestate Succession - CORRECT ANSWER -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 - CORRECT ANSWER -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 - CORRECT ANSWER -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
Agent - CORRECT ANSWER -A person who acts for another person by the latter's authority
With Correct Answers 2026 Rated A+
Sole Ownership - CORRECT ANSWER -Fee Simple; Full and complete ctrl by a single party; No
survivorship; Subject to probate
Joint Tenancy WROS - CORRECT ANSWER -Ownership by two, or more with equal ctrl;
Ownership to the survivor or survivors equally
Tenancy by the Entirety - CORRECT ANSWER -Joint holding between spouses only; Decisions
required by both; Ownership to survivor
Tenants in Common - CORRECT ANSWER -No survivorship rights; Multiple owners with
differentiated shares; Sole ownership of a partial amount; Subject to Probate
Community Property - CORRECT ANSWER -All property obtained during marriage; Property
owned at time of marriage is considered separate
Income Beneficiaries - CORRECT ANSWER -Present Beneficiaries; May have access to income or
principal
Remainder Beneficiaries - CORRECT ANSWER -Future Beneficiaries; Receive remaining principal
and undistributed income
Tuition and Medical Expense Exclusion - CORRECT ANSWER -Qualified Transfers; Must be paid
directly to service provider; Unlimited in amount; Over and above AEA
Crummey Power - CORRECT ANSWER -Clifford D. Crummey v. Commissioner (1968); concept of
giving withdrawal rights to beneficiaries of trusts; considered present interest; 30 day period
, Gross Estate - CORRECT ANSWER -Anything in which the decedent owned, controlled, or
retained
Taxable Estate - CORRECT ANSWER -Total Gross Estate
-Administration and Funeral Expenses
-Claims Against the Estate
= Adjusted AGI
-Marital Deduction
-Charitable Deduction
= Tentative Taxable Estate
-State Death Tax Deduction
Intestate Successsion - CORRECT ANSWER -Dying w/o valid last will & testament
Distribution Rules of Intestate Succession - CORRECT ANSWER -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 - CORRECT ANSWER -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 - CORRECT ANSWER -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
Agent - CORRECT ANSWER -A person who acts for another person by the latter's authority
