CANNON TRUST FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS
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Terms in this set (92)
Does an Irrevocable Trust move out Yes
of the gross estate of the Grantor?
What is the current Basic Exclusion $12.06 million
Amount (BEA)?
Gross estate includes... (3 things) Everything that the decedent owned, controlled,
retained
Joint interests owned by spouses 50%/50% assumption
(only) are presumed to be what
percentage during the first estate
to dies gross estate?
All other joint interests that do not 100% includable in the first estate
include spouses are presumed to
be what percentage during the first
estate to dies gross estate?
What is the step up in basis for 1/2 step
common law states with tenants in
common?
,What is the step up in basis for 1 full step
community property states?
Which two types of Charitable and marital
gifts/deductions are unlimited?
When must the PR/Trustee elect for 6 months after DOD (or before)
an alternate valuation date?
DSUE = ? Deceased Spouse Unused Exclusion
An estate tax return form (Form within 9 months of DOD
706) must be filed...
What does filing an estate tax Allows portability of DSUE to SS
return (within 9 months) of the DOD
of the first spouse?
Gift splits apply to...? Spouses only
applicable exclusion amount (AEA) BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
Form 709 must be filed when... Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
Trust that requires mandatory Simple Trust
distribution of all income to
beneficiary on annual basis, either
outright, or to custodial account
A power of attorney that ONLT Spring DPOA
becomes effective at the time of
incapacity
, Bob and Sue are married and live in $75 (50%/50% assumption of asset with spouses)
a common law state. They put in
$100 in joint names with
survivorship rights. When Sue dies,
before Bob, it has grown to $150.
How much is includable in Sue's
gross estate?
Testamentary Trusts at funding can A. Revocable (Right answer)
have all of the following EXCEPT B. More flexible in protecting children than a
which one of the following? court established guardianship
C. Sometimes tax advantaged and an asset
protection devices
D. Set up under the terms of the decedant's will
Which of the following is the most C. Agency
contractual, least fiduciary
relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship
In the transfer A to B, B has what B. Fee Simple
kind of interest following the
transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder
QUESTIONS AND ANSWERS
Save Groups
Terms in this set (92)
Does an Irrevocable Trust move out Yes
of the gross estate of the Grantor?
What is the current Basic Exclusion $12.06 million
Amount (BEA)?
Gross estate includes... (3 things) Everything that the decedent owned, controlled,
retained
Joint interests owned by spouses 50%/50% assumption
(only) are presumed to be what
percentage during the first estate
to dies gross estate?
All other joint interests that do not 100% includable in the first estate
include spouses are presumed to
be what percentage during the first
estate to dies gross estate?
What is the step up in basis for 1/2 step
common law states with tenants in
common?
,What is the step up in basis for 1 full step
community property states?
Which two types of Charitable and marital
gifts/deductions are unlimited?
When must the PR/Trustee elect for 6 months after DOD (or before)
an alternate valuation date?
DSUE = ? Deceased Spouse Unused Exclusion
An estate tax return form (Form within 9 months of DOD
706) must be filed...
What does filing an estate tax Allows portability of DSUE to SS
return (within 9 months) of the DOD
of the first spouse?
Gift splits apply to...? Spouses only
applicable exclusion amount (AEA) BEA + DSUE = AEA of surviving spouse
*could be up to 24.12 million right now
Form 709 must be filed when... Anyone makes a gift over $16K that year
*File on April 15th with your Form 1040
Trust that requires mandatory Simple Trust
distribution of all income to
beneficiary on annual basis, either
outright, or to custodial account
A power of attorney that ONLT Spring DPOA
becomes effective at the time of
incapacity
, Bob and Sue are married and live in $75 (50%/50% assumption of asset with spouses)
a common law state. They put in
$100 in joint names with
survivorship rights. When Sue dies,
before Bob, it has grown to $150.
How much is includable in Sue's
gross estate?
Testamentary Trusts at funding can A. Revocable (Right answer)
have all of the following EXCEPT B. More flexible in protecting children than a
which one of the following? court established guardianship
C. Sometimes tax advantaged and an asset
protection devices
D. Set up under the terms of the decedant's will
Which of the following is the most C. Agency
contractual, least fiduciary
relationship?
A. Guardianship
B. Trustee
C. Agency
D. Executorship
In the transfer A to B, B has what B. Fee Simple
kind of interest following the
transfer?
A. Simple Trust
B. Fee Simple
C. Reversionary
D. Remainder
