CANNON TRUST FUNDAMENTALS
EXAM QUESTIONS AND ANSWERS 100%
PASS.
A to B. Which of the following is true following this transfer? - ANS B has a fee simple interest
A to B for life and then to C. Which of the following is true following this transfer? - ANS B has
a life estate, C has a remainder interest
A to B for 10 years and then to C. Which of the following is true following this transfer? -
ANS B has an estate for years, C has a remainder interest
A to B as long as B is found drug-free in annual tests. Which of the following is true following
this transfer? - ANS B has a determinable interest subject to a condition
A to B for life, then to C. Which of the following is true following this transfer? - ANS C has a
remainder interest
Under joint tenants with rights of survivorship (JTWROS), when one tenant dies, which of the
following best describes the result? - ANS Her share passes to the surviving joint tenant
regardless of what her Will says
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. The amount passing
through probate is which of the following? - ANS 400,000
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
, A client dies with asset in his own name in the current calendar year. As executor of the
estate, which of the following pieces of information is LEAST important to you? -
ANS Decedents cost basis on assets
An unmarried client dies intestate with $400,000 in her own name and $100,000 in joint
tenancy with right of survivorship with one of her four children. The assets will be divided
as follows: - ANS $200,000 to one child, $100,000 to each of the others
Which of the following is the MOST appropriate vehicle for funding large estate liquidity
needs? - ANS Irrevocable life insurance trust
An estate tax return (Form 706) is due within which of the following time frames? - ANS 9
months from date of death
Bob and Sue are married and live in a common law state. They put $100 in joint names with
survivorship rights. When Sue dies, before Bob, it has grown to $150. How much is includable
and Sue gross estate? - ANS $75
Which of the following is true regarding death benefits paid on a descendant's owners life
insurance policy? - ANS Not subject to income tax
A decedent's estate being settled by your bank contains an antique automobile. One of the
directors of your bank indicates that he would like to buy it. You should do which of the
following? - ANS Explain that he may not purchase the car from the estate.
Which of the following best describes the level of fiduciary liability of fiduciary liability of
corporate fiduciaries? - ANS A higher level of liability than individual fiduciaries
Asset allocation plays an important role in the portfolio performance. Many contend that the
percentage of differential of return determined by the asset mix is approximately: - ANS 80%
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
EXAM QUESTIONS AND ANSWERS 100%
PASS.
A to B. Which of the following is true following this transfer? - ANS B has a fee simple interest
A to B for life and then to C. Which of the following is true following this transfer? - ANS B has
a life estate, C has a remainder interest
A to B for 10 years and then to C. Which of the following is true following this transfer? -
ANS B has an estate for years, C has a remainder interest
A to B as long as B is found drug-free in annual tests. Which of the following is true following
this transfer? - ANS B has a determinable interest subject to a condition
A to B for life, then to C. Which of the following is true following this transfer? - ANS C has a
remainder interest
Under joint tenants with rights of survivorship (JTWROS), when one tenant dies, which of the
following best describes the result? - ANS Her share passes to the surviving joint tenant
regardless of what her Will says
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. The amount passing
through probate is which of the following? - ANS 400,000
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
, A client dies with asset in his own name in the current calendar year. As executor of the
estate, which of the following pieces of information is LEAST important to you? -
ANS Decedents cost basis on assets
An unmarried client dies intestate with $400,000 in her own name and $100,000 in joint
tenancy with right of survivorship with one of her four children. The assets will be divided
as follows: - ANS $200,000 to one child, $100,000 to each of the others
Which of the following is the MOST appropriate vehicle for funding large estate liquidity
needs? - ANS Irrevocable life insurance trust
An estate tax return (Form 706) is due within which of the following time frames? - ANS 9
months from date of death
Bob and Sue are married and live in a common law state. They put $100 in joint names with
survivorship rights. When Sue dies, before Bob, it has grown to $150. How much is includable
and Sue gross estate? - ANS $75
Which of the following is true regarding death benefits paid on a descendant's owners life
insurance policy? - ANS Not subject to income tax
A decedent's estate being settled by your bank contains an antique automobile. One of the
directors of your bank indicates that he would like to buy it. You should do which of the
following? - ANS Explain that he may not purchase the car from the estate.
Which of the following best describes the level of fiduciary liability of fiduciary liability of
corporate fiduciaries? - ANS A higher level of liability than individual fiduciaries
Asset allocation plays an important role in the portfolio performance. Many contend that the
percentage of differential of return determined by the asset mix is approximately: - ANS 80%
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
