CANNON TRUST FUNDAMENTALS
EXAM QUESTIONS AND ANSWERS 100%
PASS.
Your client owns a $200,000 home in joint tenanc
y, a $15,000 car in his own name, an
$8,000 CD in his name alone, and a $100,000 life in
surance policy with a cash value of
$10,000, payable to his wife. What is the value of
his probate
estate?
A)$23,000
B)$33,000
C) $233,000
D) $333,000 - ANS A) $23,000
Which of the following is an example of tangible
personal property?
A) Gold Bar
B) Common Stock Certificate
C) Patent
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,D) Vacant Land - ANS A) Gold Bar
Which of the following is an example of tangible
personal property?
A) Family Residence
B) IBM Stock
C) Jewelry
D) Rental House - ANS C) Jewelry
A to B for life, then to C. Following this transfer, which of the following is true?
A) A has a fee simple interest
B) B has revisionary interest
C) C has remainder interest
D) C has a life estate - ANS C) C has remainder interest
Under joint tenants with rights of survivorship,
when one tenant dies which of the
following best describes the result?
A) Her share passes through her will to her heirs
B) Her share passes by law to her heirs, not by will
C) Her share passes to the surviving joint tenant, regardless of will
D) Asset must be sold and estate gets 1/2 of the proceeds. - ANS C) Her share passes to the
surviving joint tenant, regardless of the will.
A decedent owns $400,000 in his own name, a $200,000 home in joint tenancy with his spouse
and a $100,000 life insurance policy with the children as beneficiaries. Which
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, of the following is the amount passing through probate?
A) $0
B) $400,000
C) $500,000
D) $700,000 - ANS B) $400,000
In cutting down a tree, which of the following occurs?
A) Real property is converted to personal property
B) Personal property is converted to real property
C) Real property is converted to a fixture
D) There is no conversion, the tree remains real property. - ANS A) Real property is converted
to personal property
Which of the following statements BEST describes
the U.S. Transfer Tax System?
A) Gift taxes are on a lower rate schedule than estate taxes.
B) Estate taxes are calculated independent of taxable gifts.
C) Estate taxes are based on the value of taxable gifts and fair market value of assets owned at
death.
D) Taxable gifts that are drawn back into the estate f
or calculation of estate taxes
create double taxation. - ANS C) Estate taxes are based on the value of taxable gifts and fair
market value of assets owned at death.
Gift and Estate Taxes are unified for individuals. Which of the following best describes what that
means?
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EXAM QUESTIONS AND ANSWERS 100%
PASS.
Your client owns a $200,000 home in joint tenanc
y, a $15,000 car in his own name, an
$8,000 CD in his name alone, and a $100,000 life in
surance policy with a cash value of
$10,000, payable to his wife. What is the value of
his probate
estate?
A)$23,000
B)$33,000
C) $233,000
D) $333,000 - ANS A) $23,000
Which of the following is an example of tangible
personal property?
A) Gold Bar
B) Common Stock Certificate
C) Patent
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,D) Vacant Land - ANS A) Gold Bar
Which of the following is an example of tangible
personal property?
A) Family Residence
B) IBM Stock
C) Jewelry
D) Rental House - ANS C) Jewelry
A to B for life, then to C. Following this transfer, which of the following is true?
A) A has a fee simple interest
B) B has revisionary interest
C) C has remainder interest
D) C has a life estate - ANS C) C has remainder interest
Under joint tenants with rights of survivorship,
when one tenant dies which of the
following best describes the result?
A) Her share passes through her will to her heirs
B) Her share passes by law to her heirs, not by will
C) Her share passes to the surviving joint tenant, regardless of will
D) Asset must be sold and estate gets 1/2 of the proceeds. - ANS C) Her share passes to the
surviving joint tenant, regardless of the will.
A decedent owns $400,000 in his own name, a $200,000 home in joint tenancy with his spouse
and a $100,000 life insurance policy with the children as beneficiaries. Which
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, of the following is the amount passing through probate?
A) $0
B) $400,000
C) $500,000
D) $700,000 - ANS B) $400,000
In cutting down a tree, which of the following occurs?
A) Real property is converted to personal property
B) Personal property is converted to real property
C) Real property is converted to a fixture
D) There is no conversion, the tree remains real property. - ANS A) Real property is converted
to personal property
Which of the following statements BEST describes
the U.S. Transfer Tax System?
A) Gift taxes are on a lower rate schedule than estate taxes.
B) Estate taxes are calculated independent of taxable gifts.
C) Estate taxes are based on the value of taxable gifts and fair market value of assets owned at
death.
D) Taxable gifts that are drawn back into the estate f
or calculation of estate taxes
create double taxation. - ANS C) Estate taxes are based on the value of taxable gifts and fair
market value of assets owned at death.
Gift and Estate Taxes are unified for individuals. Which of the following best describes what that
means?
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