Cannon Trust School II Exam (Latest
Update) Questions & Correct Answers (100%
Correct Verified Answers) Already Graded A+
Save
Terms in this set (68)
What is the primary fiduciary duty To act in the best interests of the beneficiaries
of a trustee under the Uniform Trust
Code (UTC)?
To maximize trust income
To act in the best interests of the
beneficiaries
To invest solely in conservative
assets
To distribute all trust assets annually
Which IRS form is used to report Form 1040
income from a revocable living
trust?
Form 1041
Form 1040
Form 706
Form 709
,Under the Prudent Investor Rule, Risk, return, and the needs of all beneficiaries
what must a trustee consider when
making investment decisions?
Only the income needs of the
current beneficiary
Risk, return, and the needs of all
beneficiaries
The grantor's personal investment
preferences
Maximizing short-term gains
What is the purpose of a Crummey To qualify contributions for the gift tax exclusion
power in a trust?
To allow discretionary distributions
To qualify contributions for the gift
tax exclusion
To revoke the trust
To appoint a successor trustee
What is the federal estate tax $15 million
exemption amount for 2026?
$5.45 million
$13.61 million
$10 million
$15 million
Under the UTC, what is required for Prudent selection and monitoring of the agent
a trustee to delegate investment
functions?
Beneficiary approval
Prudent selection and monitoring
of the agent
Court authorization
Grantor's written consent
, Which type of trust is used to AB trust
minimize estate taxes for married
couples?
Revocable living trust
Charitable remainder trust
AB trust
Special needs trust
What is the fiduciary standard for Act with prudence, skill, and diligence
managing trust investments?
Maximize income regardless of risk
Act with prudence, skill, and
diligence
Follow the grantor's instructions
exclusively
Avoid all investments with market
risk
Which IRS form is used to report Form 706
estate taxes?
Form 1040
Form 1041
Form 706
Form 709
What is the purpose of a special To provide for a disabled beneficiary without
needs trust? affecting eligibility for public benefits
To provide for a disabled
beneficiary without affecting
eligibility for public benefits
To minimize estate taxes
To fund charitable organizations
To distribute assets to minors
immediately
Update) Questions & Correct Answers (100%
Correct Verified Answers) Already Graded A+
Save
Terms in this set (68)
What is the primary fiduciary duty To act in the best interests of the beneficiaries
of a trustee under the Uniform Trust
Code (UTC)?
To maximize trust income
To act in the best interests of the
beneficiaries
To invest solely in conservative
assets
To distribute all trust assets annually
Which IRS form is used to report Form 1040
income from a revocable living
trust?
Form 1041
Form 1040
Form 706
Form 709
,Under the Prudent Investor Rule, Risk, return, and the needs of all beneficiaries
what must a trustee consider when
making investment decisions?
Only the income needs of the
current beneficiary
Risk, return, and the needs of all
beneficiaries
The grantor's personal investment
preferences
Maximizing short-term gains
What is the purpose of a Crummey To qualify contributions for the gift tax exclusion
power in a trust?
To allow discretionary distributions
To qualify contributions for the gift
tax exclusion
To revoke the trust
To appoint a successor trustee
What is the federal estate tax $15 million
exemption amount for 2026?
$5.45 million
$13.61 million
$10 million
$15 million
Under the UTC, what is required for Prudent selection and monitoring of the agent
a trustee to delegate investment
functions?
Beneficiary approval
Prudent selection and monitoring
of the agent
Court authorization
Grantor's written consent
, Which type of trust is used to AB trust
minimize estate taxes for married
couples?
Revocable living trust
Charitable remainder trust
AB trust
Special needs trust
What is the fiduciary standard for Act with prudence, skill, and diligence
managing trust investments?
Maximize income regardless of risk
Act with prudence, skill, and
diligence
Follow the grantor's instructions
exclusively
Avoid all investments with market
risk
Which IRS form is used to report Form 706
estate taxes?
Form 1040
Form 1041
Form 706
Form 709
What is the purpose of a special To provide for a disabled beneficiary without
needs trust? affecting eligibility for public benefits
To provide for a disabled
beneficiary without affecting
eligibility for public benefits
To minimize estate taxes
To fund charitable organizations
To distribute assets to minors
immediately
