CANNON FINANCIAL INSTITUTE CFIRS SAMPLE UPDATE|EXAM QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED ANSWERS (NEW)!!!

CANNON FINANCIAL INSTITUTE
CFIRS SAMPLE UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
"Asmanmexecutormofmanmestate,mamBankmTrustmDepartmentmtypically:



a.mDoesmnotmhavemamfiduciarymduty.

b.mIsmchargedmwithmthemresponsibilitymtommarshalmassets,mpaymdebts,mandmmakemdistributionsmper
mtermsmofmthemwill.



c.mCanmonlymservemifmgrantedmspecialmpermissionmbymthemregulatorymauthoritiesminmadditionmtomth
embank'smgeneralmfiduciarympowers.

d.mMustmhavemcapitalminmexcessmofmthemnormalmcapitalmrequiredmtomexercisemgeneralmtrustmpower
s.



"m-mCORRECTmANSWERmB



"Whenmthemtermsmofmanmirrevocablemlivingmtrustmbecomemillegal,mimprudent,mormimpossiblemwith
mwhichmtomcomply,mthemtrusteem(asmwithmamtestamentarymtrust):




a.mShouldmpetitionmamcourtmofmpropermjurisdictionmforminstructionmasmtomthempropermcoursemofmact
ion.

b.mIsmprotectedminmfollowingmregulatorymguidancemprovidedmbymthemtrustee'smprimarymregulator.

c.mIsmprotectedminmfollowingmdirectionsmofmammajoritymofmthembeneficiaries.

,"m-mCORRECTmANSWERmA



"Asmexecutormofmanmestate,mambankmmustmtakemcontrolmof:



a.mOnlymsuchmpropertymasmcontainedminmschedulemAmattachedmtomthemwill.

b.mAllmrealmandmpersonalmpropertymownedmbymthemtestatormatmdeath.

c.mAllmpersonalmpropertymownedmbymthemdecedentmatmthemtimemofmtheirmdeath.

d.mAllmrealmandmpersonalmpropertymownedmbymthemdeceasedmexceptmthempersonalmresidencemoccu
piedmbymthemsurvivingmspouse.



"m-mCORRECTmANSWERmB



"Amtestamentarymtrustmismestablishedmby:



a.mThemtermsmofmamdecedent'smwill.

b.mAmdepositmofmone'smownmmoneyminmhismnamemasmtrusteemformanother.

c.mThemsettlormduringmhis/hermlifetime.

d.mOrdermofmthemappropriatemcourt.



"m-mCORRECTmANSWERmA



"Anmirrevocablemtrustmcanmbemterminatedmpriormtomitsmnormalmdistributionmdate:



a.mIfmanmadultmbeneficiarymrequestsmitmofmthemtrustee.

b.mIfmambeneficiarymnomlongermwishesmthemmoniesmsincemtheymareminmamhighmtaxmbracket.

c.mUndermcourtmordermwithmunanimousmconsentmofmallmbeneficiaries,mincludingmrepresentationmfo
rmminorsmandmunborns,mprovidedmthempurposemofmthemtrustmismsatisfied.

,d.mInmthemdiscretionmofmthemtrusteemwithmthemapprovalmofmthemauditor.



"m-mCORRECTmANSWERmC



"Trusteesmhavemamfiduciarymdutymto:



a.mCommunicatemwithmbeneficiaries.

b.mMakemtrustmassetsmproductivematmleastmequalmtomthemS&Pm500.

c.mInvestmfundsminmaccordancemwithmthembeneficiaries'mwishes.

d.mBemprofitable.



"m-mCORRECTmANSWERmA



"Anmintermvivosmtrustmismonemthat:



a.mIsmsetmupmduringmthemgrantor'smlifetime.

b.mIsmcreatedmbymthemlastmwillmandmtestamentmofmthemgrantor.

c.mMustmbemrevocablembymthemgrantormduringmhis/hermlifetime.

d.mMustmbemirrevocablembymthemgrantormduringmhis/hermlifetime.



"m-mCORRECTmANSWERmA



"Inmmanymjurisdictions,munlessmthempowermtomrevokemismspecified,mthemtrustmismsaidmtombe:



a.mVoid.

b.mAmendable.

, c.mRevocable.

d.mIrrevocable.



"m-mCORRECTmANSWERmD



"Ifmampersonmdies,mintestate,mtheymdied:



a.mWithmambankruptmestate.

b.mWithoutmamvalidmwill.

c.mWithoutmamsurvivingmspouse.

d.mInmtransitmbetweenmtwomstates.



"m-mCORRECTmANSWERmB



"Anmindividualmholdingmamtestamentarymgeneralmpowermofmappointmentmwillmbemtaxedmonmwhichm
ofmthemfollowing:



a.mAmpercentagemofmthemincomemonlymifmthempowermismexercised.

b.mAmfractionmormpercentagemofmbothmthemordinarymincomemandmcapitalmgainsmformthemperiodmofmti
memthempowermismavailablembutmnotmexercised.

c.mThemfullmvaluemofmthempropertymsubjectmtomthempowermwillmbemincludedminmthemholder'smestate.

d.mAmfractionmormpercentagemofmbothmthemordinarymincomemandmcapitalmgainsmformthemperiodmofmti
memthempowermismavailablemonlymifmexercised.



"m-mCORRECTmANSWERmC



"Anmestatemtaxmreturnm(Formm706)mismdue: