CANNON TRUST FUNDAMENTALS EXAM QUESTIONS AND ANSWERS
Here is a compilation of Cannon Trust Fundamentals exam questions and
answers, drawn from publicly available study materials, flashcards, and previews
related to the Cannon Financial Institute's introductory trust and estate course
(which covers key terminology, property law concepts, fiduciary basics, estate/gift
taxation, and planning instruments).
Note: These are representative questions from study resources (e.g., Docsity
previews and Quizlet sets). The actual course exam is proctored and may vary
slightly by year or version. Current figures (e.g., exclusion amounts) reflect the
data in the sources and should be verified against the latest IRS rules, as they
change periodically.
Property Law & Interests
1. Which of the following is an example of TPP (Tangible Personal Property)?
1. Rental property
2. Common stock
3. Art work
4. Vacant land Answer: 3. Art work
2. 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 Answer: 2. Fee simple
, 3. A life tenant has what kind of interest in a property?
1. Reversionary
2. Remainder
3. Future
4. Present Answer: 4. Present
4. Under JTWROS (Joint Tenancy with Right of Survivorship), when one
tenant dies, which best describes the result? A. His/her share passes
through their will to their heirs B. His/her share passes by law to their heirs,
not through their will C. His/her share passes to the surviving tenant,
regardless of what their will says D. The asset must be sold and the estate
gets 1/2 the proceeds Answer: C. His/her share passes to the surviving
tenant, regardless of what their will says
Estate & Gift Taxation Basics
5. Which of the following statements best describes the U.S. Transfer Tax
System?
1. Gift taxes are on a lower rate schedule than estate taxes
2. Estate taxes are calculated independent of taxable gifts
3. Estate 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 Answer: 3. Estate taxes are
based on the value of taxable gifts and the FMV of assets owned as
of DOD
6. Which of the following is included in the gross estate?
1. A $20K gift in fee simple using both spouses' annual gift tax exclusion
given away within 3 years of DOD
2. Funds in a qualified retirement plan of the decedent with a named
beneficiary Answer: 1 (the recent gift pulled back under 3-year rule
considerations in some contexts)
Here is a compilation of Cannon Trust Fundamentals exam questions and
answers, drawn from publicly available study materials, flashcards, and previews
related to the Cannon Financial Institute's introductory trust and estate course
(which covers key terminology, property law concepts, fiduciary basics, estate/gift
taxation, and planning instruments).
Note: These are representative questions from study resources (e.g., Docsity
previews and Quizlet sets). The actual course exam is proctored and may vary
slightly by year or version. Current figures (e.g., exclusion amounts) reflect the
data in the sources and should be verified against the latest IRS rules, as they
change periodically.
Property Law & Interests
1. Which of the following is an example of TPP (Tangible Personal Property)?
1. Rental property
2. Common stock
3. Art work
4. Vacant land Answer: 3. Art work
2. 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 Answer: 2. Fee simple
, 3. A life tenant has what kind of interest in a property?
1. Reversionary
2. Remainder
3. Future
4. Present Answer: 4. Present
4. Under JTWROS (Joint Tenancy with Right of Survivorship), when one
tenant dies, which best describes the result? A. His/her share passes
through their will to their heirs B. His/her share passes by law to their heirs,
not through their will C. His/her share passes to the surviving tenant,
regardless of what their will says D. The asset must be sold and the estate
gets 1/2 the proceeds Answer: C. His/her share passes to the surviving
tenant, regardless of what their will says
Estate & Gift Taxation Basics
5. Which of the following statements best describes the U.S. Transfer Tax
System?
1. Gift taxes are on a lower rate schedule than estate taxes
2. Estate taxes are calculated independent of taxable gifts
3. Estate 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 Answer: 3. Estate taxes are
based on the value of taxable gifts and the FMV of assets owned as
of DOD
6. Which of the following is included in the gross estate?
1. A $20K gift in fee simple using both spouses' annual gift tax exclusion
given away within 3 years of DOD
2. Funds in a qualified retirement plan of the decedent with a named
beneficiary Answer: 1 (the recent gift pulled back under 3-year rule
considerations in some contexts)
