Can non Tr ust School 1 Exam Certified Questions
w ith 100% Verified Correct Answ ers
1. Your client owns a $200,000 home in joint tenancy, a $15,000 car in his
own name, an $8,000 CD in his name alone, and a $100,000-life insurance policy
with a cash value of $10,000, payable to his wife. What is the value of his
probate estate?
- $23,000
- $33,000
- $223,000
- $333,000
Answer $23,000
2. A simple trust earned $27,000 in dividends. It paid $4,000 in trustee
fees, one-half
from income and one-half from principal. Trust accounting income is which of
the following?
- $0
- $23,000
- $25,000
- $27,000
,Answer $25,000
3. If the Trust Document is silent with respect to a certain cash transaction,
the Trust Administrator should first look to which of the following for
guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
Answer Principal and Income Law of the State
4. When determining a long-term sustainable rate of return for a unitrust
pay- out, which of the following best represents the range of high confidence
payout percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Answer 3-5%
5. Which of the following is an example of tangible personal property?
- Gold bar
,- Common stock certificate
- Patent
- Vacant land
Answer Gold bar
6. Which of the following is an example of tangible personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house
Answer Jewelry
7. A to B for life, then to C. Following this transfer, which of the following is
true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Answer C has a remainder interest.
8. Under joint tenants with rights of survivorship, when one tenant dies
, which of the following best describes the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her will.
- Her share passes to the surviving joint tenant regardless of what her will says.
- The asset must be sold and the estate gets 1/2 of the proceeds.
Answer Her share passes to the surviving joint tenant regardless of what her will says.
9. 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 of the following is the amount passing through
probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
Answer $400,000
10. In cutting down a tree, which of the following occurs?
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
w ith 100% Verified Correct Answ ers
1. Your client owns a $200,000 home in joint tenancy, a $15,000 car in his
own name, an $8,000 CD in his name alone, and a $100,000-life insurance policy
with a cash value of $10,000, payable to his wife. What is the value of his
probate estate?
- $23,000
- $33,000
- $223,000
- $333,000
Answer $23,000
2. A simple trust earned $27,000 in dividends. It paid $4,000 in trustee
fees, one-half
from income and one-half from principal. Trust accounting income is which of
the following?
- $0
- $23,000
- $25,000
- $27,000
,Answer $25,000
3. If the Trust Document is silent with respect to a certain cash transaction,
the Trust Administrator should first look to which of the following for
guidance?
- Court of Jurisdiction
- Principal and Income Law of the State
- Grantor
- OCC
Answer Principal and Income Law of the State
4. When determining a long-term sustainable rate of return for a unitrust
pay- out, which of the following best represents the range of high confidence
payout percentages?
- 1-2%
- 2-3%
- 3-5%
- 120% of the federal midterm rate
Answer 3-5%
5. Which of the following is an example of tangible personal property?
- Gold bar
,- Common stock certificate
- Patent
- Vacant land
Answer Gold bar
6. Which of the following is an example of tangible personal property?
- Family residence
- IBM stock
- Jewelry
- Rental house
Answer Jewelry
7. A to B for life, then to C. Following this transfer, which of the following is
true?
- A has a fee simple interest.
- B has a reversionary interest.
- C has a remainder interest.
- C has a life estate.
Answer C has a remainder interest.
8. Under joint tenants with rights of survivorship, when one tenant dies
, which of the following best describes the result?
- Her share passes through her will to her heirs.
- Her share passes by law to her heirs, not through her will.
- Her share passes to the surviving joint tenant regardless of what her will says.
- The asset must be sold and the estate gets 1/2 of the proceeds.
Answer Her share passes to the surviving joint tenant regardless of what her will says.
9. 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 of the following is the amount passing through
probate?
- 0.
- $400,000.
- $500,000.
- $700,000.
Answer $400,000
10. In cutting down a tree, which of the following occurs?
- Real property is converted to personal property.
- Personal property is converted to real property.
- Real property is converted to a fixture.
