CANNON TRUST FUNDAMENTALS CERTIFIED QUALITY EXAM
VERIFIED QUESTIONS AND ACCURATE ANSWERS GRADED A+
Which of the following trusts must provide the surviving
spouse with income, but need not provide the spouse with
rights to the principal, nor the right to designate who should
receive the principal?
Qtip trust
In a qualified terminable interest property (qtip) trust, which of
the following is true?
The qtip
Does not qualify for the marital deduction unless elected
Which rule allows accumulated, undistributed income held in a
trust at the end of a year or the
Death of the current income beneficiary, to be re-
characterized as principal?
Shifting clause
Which power of appointment allows the power to be exercised
in such a way to maintain the
Beneficiarys standard of living, specifically when it comes to
health, education, maintenance
And support of the beneficiary?
,Ascertainable standard
Which of the following best defines the person named in your
trust to administer your trust?
Trustee
A client dies with $600,000 in her trust which distributes to my
issue per stirpes. She has four
Children, all living. The assets will be divided as follows:
$150,000 to each child
If a trust contains a spendthrift clause, which of the following
is true?
The beneficiary is unable
To encumber the assets without the consent of the trustee
A client dies with assets in his own name as well as assets in
his revocable living trust. Which of
The following best describes how the assets pass?
Some of the assets will pass by will and some
By terms of the trust
, Which of the following is a benefit of a charitable lead trust?
The grantor is able to meet their
Charitable giving objective while making a family gift with a
substantial reduction in the gift
Tax valuation since it is subject to a time value discount.
Which of the following is not a limitation of charitable
remainder trusts (crts)?
Crts do not
Allow an income stream for life for the beneficiary(ies), which
makes it difficult to ensure
Financial security throughout life.
Which type of irrevocable trust is designed to remove the
value of the primary residence or second home from the
grantor's taxable estate?
Qualified personal residence trust
A gift of income to charity with the remainder to children is an
example of which of the
Following?
Charitable lead trust
VERIFIED QUESTIONS AND ACCURATE ANSWERS GRADED A+
Which of the following trusts must provide the surviving
spouse with income, but need not provide the spouse with
rights to the principal, nor the right to designate who should
receive the principal?
Qtip trust
In a qualified terminable interest property (qtip) trust, which of
the following is true?
The qtip
Does not qualify for the marital deduction unless elected
Which rule allows accumulated, undistributed income held in a
trust at the end of a year or the
Death of the current income beneficiary, to be re-
characterized as principal?
Shifting clause
Which power of appointment allows the power to be exercised
in such a way to maintain the
Beneficiarys standard of living, specifically when it comes to
health, education, maintenance
And support of the beneficiary?
,Ascertainable standard
Which of the following best defines the person named in your
trust to administer your trust?
Trustee
A client dies with $600,000 in her trust which distributes to my
issue per stirpes. She has four
Children, all living. The assets will be divided as follows:
$150,000 to each child
If a trust contains a spendthrift clause, which of the following
is true?
The beneficiary is unable
To encumber the assets without the consent of the trustee
A client dies with assets in his own name as well as assets in
his revocable living trust. Which of
The following best describes how the assets pass?
Some of the assets will pass by will and some
By terms of the trust
, Which of the following is a benefit of a charitable lead trust?
The grantor is able to meet their
Charitable giving objective while making a family gift with a
substantial reduction in the gift
Tax valuation since it is subject to a time value discount.
Which of the following is not a limitation of charitable
remainder trusts (crts)?
Crts do not
Allow an income stream for life for the beneficiary(ies), which
makes it difficult to ensure
Financial security throughout life.
Which type of irrevocable trust is designed to remove the
value of the primary residence or second home from the
grantor's taxable estate?
Qualified personal residence trust
A gift of income to charity with the remainder to children is an
example of which of the
Following?
Charitable lead trust
